June Unemployment Rate 9.8 Percent

Gradual increase in state rate mirrors national trend

Nashville, TN – Tennessee Commissioner of Labor & Workforce Development Karla Davis announced today Tennessee’s unemployment rate for June was 9.8 percent, up slightly from the May revised rate of 9.7. The national unemployment rate for June 2011 was 9.2 percent, up from the May revised rate of 9.1 percent.

“The decline in employment combined with a slight expansion in the labor force explains the higher unemployment rate,” Commissioner Davis said. “This is the third month in a row in which the unemployment rate has slightly increased.”

According to the household survey conducted by the Labor and Workforce Development department, the number of employed Tennesseans decreased by 3,200 from May to June 2011. The civilian labor force increased by 1,800, and at 3,143,900 is the highest on record.

“The increase in employment levels over the last 12 months is still positive with more than 74 thousand jobs gained,” added Davis. “This growth rate of 2.7 percent is much higher than the national employment picture which only grew 0.2 percent from June 2010 to June 2011.”

Major Changes in Estimated Nonagricultural Employment

May 2011 to June 2011

Month-to-month increases occurred in leisure and hospitality, up 4,700 jobs; mining, logging, and construction was up 1,900; and manufacturing increased by 1,600. Government jobs decreased by 30,800 (mostly due to local government educational service declines); educational services were down by 3,000; and administrative, support and waste services declined by 1,700.

Major Changes in Estimated Nonagricultural Employment

June 2010 to June 2011

Year-over-year increases took place in private educational and health services, up 7,100 jobs; transportation and warehousing, up 5,500; and food services and drinking places increased by 5,300.

Employment decreases took place in government, down 11,000; retail trade, down 2,600; and accommodation, down 2,200.