Haslam: June featured lowest unemployment rate in Tennessee history

Tennessee's unemployment rate last month was the lowest in state history, Gov. Bill Haslam announced Thursday. 

The state had a preliminary seasonally adjusted unemployment rate of 3.6 percent in June. 

"This is a story that's spread across the state of Tennessee," he said at a rare news conference where he was joined by Labor and Workforce Development Commissioner Burns Phillips, Economic and Community Development Commissioner Bob Rolfe, Education Commissioner Candice McQueen, and Tennessee Board of Regents Chancellor Flora Tydings.

The state had a preliminary unemployment rate of 4 percent in May.

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Haslam said the unemployment figures came after decisions made by his administration and the state legislature. "We honestly think this is a result of the policies put in place by the state of Tennessee and the General Assembly," he said.

The state's previous low for unemployment rate was 3.7 percent in March 2000.

The last time Tennessee's unemployment rate was below 4 percent was in February 2001. 

The state has been tracking unemployment since 1976, Phillips said.

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State officials also said the decrease in unemployment during June was largely due to declines in the seasonally adjusted labor force.

Between May and June, nonfarm employment increased by 5,900. Among the sectors that experienced the largest increase were leisure and hospitality, trade, transportation and utilities and mining, logging and construction. 

When asked if the low unemployment rate has led to an increase in household incomes, Haslam said that information is not available on a monthly basis. 

"As of six months ago we were the second fastest increase in the country in terms of average household income," he said. 

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Tennessee's June unemployment totals are in contrast with national figures, which indicate a slight increase in unemployment compared to the month before. The national unemployment rate in June was 4.4 percent.

"When a state's rate declines during a national uptick in unemployment, that's something to note," said Phillips. 

Tennessee's decline in unemployment is hardly isolated: officials in Michigan and Wisconsin on Thursday heralded their own June unemployment figures that have been among the lowest they've in nearly two decades. 

McQueen said the decline in unemployment comes as education officials continue to prepare students to enter the workforce. "We're excited about these results because it continues to push our students to perform because they know they can get jobs and be connected to strong careers for their future," she said.

Rhea County was the state's lone county to see unemployment over 5 percent for June. But Haslam and Rolfe said the unemployment rate should change, given the recent announcement that Finnish tire manufacturer Nokian Tyres will bring a new plant to the area. The move is expected to generate 400 jobs.

The Nokian Tyres plant is one of several announcements Haslam and Rolfe, who recently traveled to Europe, have said will be coming to Tennessee in the coming months. 

"At the end of the day, jobs get created when people put capital at risk," Haslam concluded. "We've created and they've created an environment in Tennessee where people feel comfortable putting capital at risk."

Reach Joel Ebert at jebert@tennessean.com or 615-772-1681 and on Twitter @joelebert29.