Area jobless rate at 27-year high

Hamilton County's jobless rate in January rose eight-tenths of a percent from December to reach 10 percent, the highest rate in nearly 27 years, according to figures from the Tennessee Department of Labor and Workforce Development.

In July 1983, Hamilton County's rate was 10.4 percent. The highest recorded in Hamilton County, according to the department, was 11.9 percent in February 1983.

Economists say January unemployment typically rises as temporary workers hired to work during the holiday season are let go, but county figures are not adjusted to compensate for the seasonal variation in employment.

Still, while it's hard to see record-setting double-digits unemployment rate as good news, Tom Edd Wilson, Chattanooga Chamber of Commerce president and CEO, said it's not as bad as it looks.

"I think we're on the road to recovery, but I think it's going to be a much slower recovery than we've experienced in past economic downturns," Mr. Wilson said. "Chattanooga will be better positioned than many if not most other cities our size in the country to come out of this recession with more jobs, and with increased productivity."

He said that with employers such as Volkswagen in the pre-hiring stage, much of the city's job growth is just around the corner, and added that most business owners with whom he meets display optimism he hasn't seen in months.

"I am getting more positive responses by far than I've received in the last 15 months," Mr. Wilson said. "And people are telling me that their business is doing better, but they also say it's going to be slow."

Jeff Hentschel, communications director for the Tennessee Department of Labor and Workforce Development, said that while Hamilton County's unemployment had climbed to a high, there are some subtle differences between the current recession and the one in the early 1980s.

"The impact of the unemployment rate in Hamilton County is significant because it affects a larger base, there are 30,000 more people in the labor force now," he said.

But the '80s recession was much longer, with double-digit unemployment lasting 19 months, he added.

"So when we look at this recession, and going into double digits for one month does not necessarily identify a trend," he said.

Mr. Hentschel added that while Hamilton's 10 percent unemployment rate is unfortunante, other counties in Tennessee have been hit much harder, with Marshall County at 20.3 percent -- double that of Hamilton.