Addressing Tennessee’s Economic Challenges

January 26, 2009, WASHINGTON, D.C. – With the statewide unemployment rate in Tennessee at a 22-year high, it’s becoming more apparent that the United States needs a stimulus plan that will get the economy back on track.

“Tennessee has lost many jobs in just a few months, and we could lose many more this year,” said Dr. David Penn, the director of MTSU’s Business and Economic Resource Center.  “The negative outlook for jobs calls for immediate and dramatic action.”

“Right now, it seems like company after company is laying off hardworking Tennesseans,” Congressman Bart Gordon said.  “If we don’t act now, things are going to get a lot worse a lot faster.”

The unemployment statistics from December 2008 released late last week, showed that in one month, more than 15,400 jobs had been lost in Tennessee.  The statewide unemployment rate rose from 7.0% in November to 7.9% in December.  The nationwide unemployment rate was 7.2% for December.

“It is heartbreaking to read about the daily reports.  I can only imagine what the workers and their families are going through,” Gordon stated.  “It is important that the economic recovery package Congress approves is comprehensive – one that provides relief and creates jobs in the short-term while also ensuring that our workforce is prepared to handle high-tech jobs of the future.”

Gordon, who is Chairman of the House Science and Technology Committee, has been working with House leaders to draft the recovery package that will direct $5 billion to Tennessee.  The package currently includes a combination of tax cuts, infrastructure projects, and spending for unemployment benefits, TennCare and Pell Grants.

The U.S. Conference of Mayors published a report earlier this month, estimating that more than 15,000 people will be laid off in the Nashville-Murfreesboro-Franklin area over the course of the next year.

Dr. Penn added, “The current stimulus package will help minimize the number of jobs lost in Tennessee during this difficult period.”

“Congressional action could be the difference between a depression and getting through this recession.  If we get the economic recovery package to the President’s desk in its current form,” Gordon explained, “it is estimated that more than 63,000 jobs will be created in Tennessee alone over the next 2 years.”

The House is expected to pass the economic recovery package on Wednesday (Jan. 28th), while the Senate is set to pass their version of the package next week.  The goal is to have the package ready for President Obama’s signature by President’s Day, February 16th.