Chattanooga jobless rate up last month due to influx of job seekers


              A job seeker fills out an application during a National Career Fairs job fair Wednesday, April 22, 2015, in Chicago. Weekly applications for jobless aid ticked up 1,000 to a seasonally adjusted 295,000, the Labor Department said Thursday, April 23, 2015. The four-week average, a less volatile measure, increased to 284,500. Still, that is just 2,000 higher than three weeks ago when the average was at a nearly 15-year low.(AP Photo/M. Spencer Green)
A job seeker fills out an application during a National Career Fairs job fair Wednesday, April 22, 2015, in Chicago. Weekly applications for jobless aid ticked up 1,000 to a seasonally adjusted 295,000, the Labor Department said Thursday, April 23, 2015. The four-week average, a less volatile measure, increased to 284,500. Still, that is just 2,000 higher than three weeks ago when the average was at a nearly 15-year low.(AP Photo/M. Spencer Green)

Jobless in September

The unemployment rate in September, compared with the August rate, in area counties was:Tennessee, 5 percent, unchanged* Bradley, 4.6 percent, down 0.1 percent* Hamilton, 5.1 percent, up 0.1 percent* Coffee, 5.2 percent, up 0.3 percent* Franklin, 5.7 percent, unchanged* McMinn, 5.8 percent, unchanged* Polk, 5.8 percent, unchanged* Sequatchie, 6.1 percent, unchanged* Van Buren, 6.2 percent, up 0.8 percent* Grundy, 6.7 percent, up 0.1 percent* Marion, 6.7 percent, unchanged* Meigs, 6.9 percent, down 0.3 percent* Bledsoe, 7 percent, up 0.4 percentGeorgia, 5.3 percent, up 0.1 percentCatoosa, 4.7 percent, down 0.1 percentDade, 5.1 percent, unchangedWalker, 5.2 percent, down 0.1 percentChattooga, 5.6 percnet, down 0.5 pecentWhitfield, 5.7 percent, unchangedMurray, 6.7 percent, down 0.1 percentSources: Georgia Department of Labor and Tennessee Department of Labor and Workforce Development

Unemployment in the Chattanooga area rose above the state and national averages during September due to an influx of job seekers into the labor market as summer ended and more people began seeking jobs this fall.

But with thousands of holiday and automotive jobs opening up, employment prospects for those looking for work should improve this fall.

The Tennessee Department of Labor and Workforce Development said Thursday the jobless rate in the six-county Chattanooga metropolitan area rose by a tenth of a percentage point to 5.2 percent in September. Chattanooga's unemployment rate was above both the state and national averages last month even though local employers added a net 1,570 jobs last month, according to state employment estimates.

The size of the labor force in metro Chattanooga, which includes both those on the job and those actively seeking work, grew by 1,770 people last month. As a result, unemployment climbed in Chattanooga to a rate 0.2 percent higher than the statewide rate and 0.4 percent higher than the U.S. rate, not adjusted for seasonal factors.

"Even though we're seeing a slightly higher unemployment rate, Tennessee overall is showing consistent growth in jobs and we expect that to continue in 2017," University of Tennessee economist Matt Murray said.

The improving outlook for jobs this fall is encouraging more people to enter, or in some instances re-enter, the workforce.

Even with more job seekers, however, the local jobless rate is likely to fall in the final quarter of 2017 as Amazon adds up to 5,000 temporary workers at its fulfillment centers in Chattanooga and Charleston, Tenn., and local retailers add hundreds of temporary retail jobs for the Christmas holidays.

At the same time, Volks- wagen and its major suppliers such as Gestamp, Chattanooga Seating and Yanfeng Automotive Interiors also are adding more than 1,000 workers to help produce VW's new sports utility vehicle, known as the Atlas.

Other employers also are trying to fill vacancies and respond to improved business as the economy enters the seventh year of its recovery.

Mary Coulter, talent acquisition leader at Convergys, said she is trying to hire 100 customer service representatives this fall to help fill vacancies and meet increased business for Convergys' 900-employee call center in Chattanooga.

"It is a tough market this time of the year, but we are offering full-time positions and we're eager to hire people who are looking for a career," she said. "Convergys has more than 125,000 employees at over 140 call centers around the world and we offer people the chance to grow with 90 percent of our management coming up through our own ranks."

Convergys pays $11 an hour and up, plus bonuses and fringe benefits, Coulter said.

"Chattanooga is still a good market for us, and we continue to see new people moving into our market," she said.

While jobs are being added in Chattanooga, the pace of hiring is less brisk to the south in metropolitan Dalton.

The Georgia Department of Labor said Thursday the jobless rate in metropolitan Dalton increased to 6 percent in September, up one-tenth of a percentage point from the 5.9 percent rate in both the previous month and in the same month a year ago.

Dalton's jobless rate rose as the labor force and number of layoffs increased. While Georgia added 118,700 jobs, boosting employment statewide by 2.8 percent in the past year, metro Dalton lost a net 100 jobs in the past 12 months.

Dalton has been hurt by a slowdown in carpet sales, which the Dixie Group estimated this week were down 2 percent in the residential sector and are flat or slightly down this year in commercial businesses. Despite improved home starts and building activity this year, a growing share of homeowners are choosing hard surface floorcovering over carpet.

From September 2015 to September 2016, Dalton lost 100 jobs, a 0.2 percent loss, down from 68,500 in September 2015.

Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340.

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