The Chattanooga area has seen a drop in unemployment rates, falling to their lowest level since the previous spring. Despite numerous challenges, employers added over 3,200 workers to their payrolls over the past year, bringing the unemployment rate lower than the state and national averages according to employment figures. The Tennessee Department of Labor & Workforce Development shared that the nonseasonally adjusted unemployment rate decreased to 3.2% in November, a drop from the previous month’s 3.5%.

Other areas also saw a decline in the jobless rate such as Cleveland, and Dalton in Tennessee. Broadly, state-wide, the seasonally adjusted unemployment rate rose due to statewide employers shedding jobs. However, overall employment still saw an increase with 19,500 workers added in the past year, maintaining the unemployment rate at historically low levels.

Georgia too saw a decrease in unemployment, thanks to the busy hiring season before Christmas. As we approach the new year, the state is optimistic with a buoyant job market and a ready workforce. However, although the lower unemployment rates offer plenty of job opportunities, some employers are having difficulty expanding due to a shortage of workers with the necessary skills.

The tight labor market in Tennessee has also led to a higher rate of workers changing jobs. The U.S. Bureau of Labor Statistics reported that Tennessee has the nation’s fourth-highest quit rate among workers. In spite of the challenges, the employment figures remain strong. However, the unemployment rate in most rural counties remains higher than the U.S. national average.

In spite of the shutdown of several manufacturing plants throughout 2023, Chattanooga’s jobless rates have remained low due to the opening of new businesses and expansions in existing industries. The U.S. Department of Labor stated that jobless claims rose marginally from the previous week, but not significantly enough to cause concern for the labor market or broader economy. The U.S. unemployment rate has consistently been below 4% for 22 months consecutive months, a streak not seen since the 1960s.