february unemployment rate 5.3 percent

Tennessee Commissioner of Labor & Workforce Development James Neeley announced today Tennessee’s unemployment rate for February was 5.3 percent, up 0.4 percentage point from the January rate of 4.9.  In 2007 the February unemployment rate was 4.5 percent.  The national unemployment rate for February 2008 was 4.8 percent, down from the January national rate of 4.9 percent.

“The rise in the February unemployment rate indicates that Tennessee’s economy is slowing, consistent with national trends,” said Commissioner Neeley.  “Year-to-year employment growth is weak with declines in manufacturing.  Employment in the service sector continues to experience positive growth.”

January-to-February gains occurred in state government educational services employment increasing by 3,400; educational and health services employment increased 2,800; and jobs in transportation equipment increased 1,900. Month-to-month declines included retail trade employment, down 2,800.  Financial activities employment lost 700 jobs, and hospital employment lost 400 jobs from January.

Over-the-year increases led with gains of 8,800 jobs in educational and health services.  Leisure and hospitality employment increased by 4,900; and government jobs were up 3,800. Manufacturing jobs were down from a year ago with employment decreasing by 14,200; financial activities employment lost 1,400 jobs.