Tennessee Commissioner of Labor & Workforce Development James Neeley announced the Tennessee’s unemployment rate for June was 10.8 percent, up 0.1 percentage point from the May rate of 10.7 percent. The June rate a year ago was 6.4 percent. The national unemployment rate for June 2009 was 9.5 percent, up from the May rate of 9.4 percent.

“Like the national unemployment rate, Tennessee’s unemployment rate has continued to climb,” reported Labor Commissioner James Neeley. “The fact that this is such a minor increase is encouraging as the state had experienced steeper increases in unemployment rates each month for several consecutive months.” 

The last time Tennessee’s unemployment rate (seasonally adjusted) was as high as the current rate was November 1983.
 
According to the Business Survey, 5,000 job gains occurred in leisure and hospitality; 3,100 in health care and social assistance; and 300 in other services.  Major employment decreases occurred in local government educational services, down by 24,500; state government educational services declined by 4,200 jobs; and manufacturing decreased by 3,900.
 
Year-over-year increases occurred in local government, up by *12,900; health care and social assistance increased 10,100; and arts, entertainment and recreation gained 1,600; manufacturing was down 51,000; trade transportation and utilities lost 29,100; and mining and construction decreased by 26,600. 
 
*Local government increases were primarily caused by the inclusion of approximately 9,400 Summer Youth Program workers (American Recovery and Reinvestment Act).