Unemployment rates rise, but Knoxville’s labor force is growing
Even with a slight rise in unemployment rates, the Knoxville and Knox County areas saw an increase in the total labor force from May to June at almost twice the rate of the national increase.
The Knoxville MSA’s unemployment rate in June was 3.6 percent, up from 3.0 percent in May but down from 3.9 percent in June 2022.
That’s according to the newest Economic Conditions Outlook (ECO) from the Knoxville Chamber, which also reports Knox County’s unemployment rate in June was 3.3 percent, up from 2.8 percent in May but down from 3.6 percent in June 2022.
Even with a slight rise in unemployment rates, the Knoxville and Knox County areas saw an increase in the total labor force from May to June at almost twice the rate of the national increase.
The Knoxville MSA’s labor force increased 1.4 percent from 444,445 in May to 450,516 in June. Knox County’s labor force increased 1.2 percent from 253,636 in May to 256,738 in June. Tennessee’s labor force increased 1.0 percent from 3,370,833 in May to 3,403,871 in June. The national labor force increased 0.7 percent from 166,702,000 in May to 167,910,000 in June.
The July ECO also shares this data on the housing market:
- Home sales in East Tennessee declined 6.2 percent from May to June to a seasonally adjusted annual rate (SAAR) of 18,944. Similarly, home sales in Knox County fell 8.1 percent from the previous month to a SAAR of 6,791. Compared to the previous year, home sales were down 16.2 percent in the Knoxville area and 17.2 percent in Knox County.
- The median home sales price in the Knoxville area was $350,000 in June, up 7.3 percent from a year ago. Knox County’s median home sale price was $393,250, an increase of 10.3 percent from a year ago.
- Half of the homes sold across the East Tennessee region were on the market for 7 days or less, down from 8 days the previous month.
- Thirty percent of homes sold for more than the asking price, down from 32 percent the previous month. Fifteen percent of homes sold for at least $10,000 over asking and 5 percent sold for at least $25,000 over asking.
- Apartment rents in the Knoxville metro area increased 9.6 percent from the previous year in the second quarter of 2023, compared to 2.3 percent growth nationally.
To access the full July ECO report, click here.
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