Seasonal forces push up unemployment rate

Unemployment in metropolitan Chattanooga rose last month to its highest level so far in 2016, but most of the increase in the jobless rate stemmed from the seasonal drop in education employees during the summer and the influx of students and graduates entering the workforce during June.

The Tennessee Department of Labor and Workforce Development said Thursday the nonseasonally adjusted jobless rate in the six-county Chattanooga area rose during June to 5.1 percent, up from 4 percent in May and its highest level for the metro area since December.

The increase in joblessness stemmed primarily from more people coming into the workforce. Employment in the metro area rose last month by 1,812 jobs, but those gains were more than offset by an increase in the number of people working or looking for work, which rose by 5,116 persons, according to state employment figures. The state labor agency also blamed a monthly drop in state and local employment, primarily at local schools and colleges in the summer,

Unemployment in Southeast Tennessee was lowest in Hamilton and Bradley counties at 4.9 percent and highest in Rhea County at 7.7 percent.

Across Tennessee, Davidson County had the state’s lowest major metropolitan rate at 3.8 percent, increasing from 2.9 percent the previous month. Knox County was 4.3 percent in June, increasing from 3.2 percent the previous month. The Hamilton County rate was 4.9 percent, up from 3.7 in May. Shelby County was 5.8 percent, up from 4.4 percent the previous month.

In nearby Dalton, Ga., the metropolitan jobless rate rose in June to 6.3 percent, up 1 percent from 5.3 percent in May and the highest rate since March.

Despite the monthly increase, however, the jobless rate was still lower in Dalton than the 6.8 percent rate of a year ago. Over the past year, Dalton gained 500 jobs, a 0.7 percent growth rate.