August Makes Four Months of Rising Unemployment

Unemployment in Tennessee inched up for the fourth month in a row. The rate for August released Thursday was 8.5 percent.

Tennessee is moving the opposite direction of the national jobless rate, which dropped to 8.1 percent last month.

MTSU economist David Penn says Tennessee has been particularly affected by the recession in Europe.

“Much of our growth in manufacturing and business related to manufacturing have had to do with exports, over the last 10 years or so anyway. As the markets – especially European markets – shrink, then demand for our exports drops.”

The Tennessee Department of Labor reports declines in durable goods manufacturing as well as local government and transportation jobs.

However, increases were seen in construction and food service. MTSU’s David Penn says he doesn’t believe the state’s economy is reversing course, just pausing before another phase of growth.