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


              This Wednesday, March 30, 2016, photo shows a sign designed to attract employment seekers that lines a booth for job recruiters at a Job Fair in Pittsburgh. On Tuesday, April 5, 2016, the Labor Department reports on job openings and labor turnover for February. (AP Photo/Keith Srakocic)
This Wednesday, March 30, 2016, photo shows a sign designed to attract employment seekers that lines a booth for job recruiters at a Job Fair in Pittsburgh. On Tuesday, April 5, 2016, the Labor Department reports on job openings and labor turnover for February. (AP Photo/Keith Srakocic)

Unemployment in the Chattanooga area edged higher last month due an influx of job seekers into the labor market as summer ended and more people began seeking jobs this fall.

The Tennessee Department of Labor and Workforce Development said today the jobless rate in the 6-county Chattanooga metropolitan area rose by a tenth of a percentage point to 5.2 percent in September. Chattanooga's jobless 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 released today.

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 persons 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.

"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, Volkswagen 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.

In Southeast Tennessee, the jobless rate last month in September was lowest in Bradley County at 4.6 percent (down from 4.7 percent in August) and highest in Meigs County at 6.9 percent (down from 7.2 percent in August).

Among Tennessee's major metro cities, unemployment was lowest last month in Nashville at 4.1 percent and highest in Memphis at 5.6 percent.

Upcoming Events