Haslam College of Business Tennessee Business and Economic Outlook, Fall 2010

Tennessee’s economy will be buoyed by the return to stronger national and international growth. Personal income should advance 3.8 percent in 2010 followed by 4.0 percent growth in 2011. Unfortunately, the state will see further contraction in nonfarm employment in 2010 (down 0.3 percent) before growth emerges in 2011 (with jobs up nearly 1.6 percent). Unemployment rates will remain stubbornly high for years to come. Tennessee’s unemployment rate is expected to slip down to 10.1 percent this year and fall to 9.5 percent in 2011; the nation’s unemployment rate is expected to average 9.7 percent this year and 9.6 percent in 2011.