The Tri-Cities region lost 500 jobs in June. Much of the decline can be attributed to the seasonal job churn, which also pushed the unemployment rate up to 4.4%. The biggest driver of the jobless rate spike was the Greeneville area, where unemployment rose to 5.5%.

Despite fewer payroll jobs and the jobless rate spike, there’s still a silver lining: the region has 2,500 more jobs than it did this time last year. Although much of the June report may be tied to seasonal fluctuation the numbers also reflect a local job market still struggling with the shift from its manufacturing roots to a service and healthcare-driven economy.

Job changes in June followed a familiar pattern. Government and retail jobs declined, while construction, financial services, leisure, and hospitality, and other service industries saw modest gains.

As of June, there were 5,118 open job postings across Northeast Tennessee. That’s slightly down from 5,192 the previous month. Registered nurses continue to top the “most-wanted” list with 195 openings. Healthcare and social assistance jobs dominate, with 801 active listings. Among 677 postings with salary data, the median wage was $39,676.

Local wages continue to lag state and national averages. The Tri-Cities’ average hourly wage stands at $28.08, well below Tennessee’s $33.70 average.

Unemployment claims inched up slightly to 579 in the most recent report. Healthcare and social assistance accounted for the largest number of claims.

One of the region’s persistent challenges is labor force participation. With the exception of Washington Co. the region lags the state’s labor force participation average.  Just 52.2% of working-age residents are actively in the NE TN workforce. The U.S. average is 62.3% and Tennessee’s rate is 60.1%. Here’s how local counties compare:

• Washington: 59.4%
• Unicoi: 54.4%
• Sullivan: 54.6%
• Carter: 51.7%
• Greene: 48.8%
• Hawkins: 48.1%

June’s job losses, rising unemployment, and slow wage growth suggest the region is entering a seasonal phase. But with solid year-over-year growth, key sectors like healthcare and construction are expected to lead the way in the second half of the year.

Categories: LABOR MARKET