State of Chattanooga Economic Report Released

Growth in Health Care Employment Drives Gains: MSA and County Trail Nation in Employment and Income Growth in Years Leading Up to Recession

December 30, 2008 - 9:32 AM

The Ochs Center for Metropolitan Studies released the seventh and final report in the 2008 State of Chattanooga Region Report series today... this one on the economy and jobs.

David Eichenthal, President and CEO of the Ochs Center for Metropolitan Studies, said "While our 2008 report does not focus on the negative effects of the current recession or the potential opportunities related to the new Volkswagen plant, it does highlight the historic backdrop for both."

Major Findings from the Report include:

  • Among 1,000 respondents in a 2008 countywide survey, 80% of residents indicated that they consider the availability of jobs that pay a living wage to be very important to the quality of life in the Chattanooga area, an increase from just under 77% in 2006. Among fourteen quality of life factors, availability and quality of jobs ranked fourth in the 2008 survey, up from a fifth place ranking in 2006.
  • In 2007, the Chattanooga region (Catoosa, Dade, and Walker counties in Georgia and Hamilton, Marion, and Sequatchie counties in Tennessee) had 237,000 total jobs and 11,333 firms. Hamilton County accounted for 76.5% of firms and 81.6% of jobs in the region in 2007.
  • Overall in the region, between 2001 and 2007, the number of jobs grew at a rate of 3.2%, the number of firms grew by 12.4% and average annual pay grew by 22.2%. Hamilton County accounted for more than 80% of net new jobs in the region. Jobs grew by 15.8% in Sequatchie County and declined by 2.4% in Walker County. Hamilton, Catoosa, and Marion Counties experienced double-digit percentage growth in firms over this time period.
  • Between 2001 and 2007, the highest growth sectors in the region were Information (37.3%), Health Care (22.9%), and Administration/Support (20.1%). The manufacturing (-15.4%) and retail trade sectors both (-8.7%) lost jobs during this time period.
  • In 2007, the most prevalent occupation in the Chattanooga Metropolitan Statistical Area (MSA) was Office and Administrative Support, comprising 17.6% of jobs in the MSA, followed by Production Occupations (11.6%), Sales and Related Occupations (9.6%), and Food Preparation/Serving and Related Occupations (8.9%).
  • In the Chattanooga MSA there are differences in occupation by gender. Men hold 54.1% of all jobs in the region. Males hold a higher percentage of jobs in occupational categories such as Officials and Managers (65.3%), Craft Workers (87.6%), Operatives [manufacturing occupations] (72.5%) and Laborers (59.1%). Women hold a majority of jobs in Professional (63.2%), Technician (56.3%), Sales (55.1%), Office/ Clerical (82.2%), and Service (53.8%) occupations in the region. While men accounted for the majority of the white and Latino workforce in the region, a majority of the African American workers were women.
  • Between 2001 and 2007, three occupations in the Chattanooga MSA grew by more than 30% - Computer/Mathematical (124.9%), Arts/Design/Entertainment /Sports/Media (59.2%) and Legal (30.8%). The number of jobs declined in seven occupational categories, with the largest reduction in Architecture and Engineering occupations (-23.8%). Production Occupations declined by approximately 10% and Personal Care and Service Occupations declined by 14% over this time period.
  • When asked about the quality and availability of employment in Hamilton County today, most respondents to the 2008 countywide survey indicated that it was either "fair" or "poor" (68%) -- as opposed to excellent or good -- 28%. Nearly half of African American respondents rated the employment situation as poor - more than double the percentage of white respondents.
  • Between 2001 and 2007, overall employment grew by 3.2% in Hamilton County. Health Care (45.1%), Information (39.7%), Management of Companies and Enterprises (28.1%), and Accommodation and Food Services (25.0%) were the fastest growing sectors. On a net basis, the 6,418 increase in Health Care jobs accounted for more than 100% of private sector growth in the county.
  • Between 2001 and 2006, per capita income growth in the Chattanooga MSA and Hamilton County lagged behind increases in Tennessee and the nation. Hamilton County's median household income ($41,855) was higher than Chattanooga's ($36,981) and Tennessee's ($40,315), but less than the United States' median household income of $48,451 in 2006.
  • Among the 14 benchmarks, Hamilton County had the eighth-highest rate of employment growth. The fastest employment growth was in Ada County (17.1%); four counties saw employment decline, led by Washtenaw County (-8.1%). Among the benchmarks, Hamilton County had the greatest increase in information (39.8%) and Accommodation/Food Service employment (25%).

Eichenthal said, "The story of the region's economy over the last seven years is like the glass that is half empty and half full. While we have outpaced some comparable counties and regions that experienced job declines, we have not grown jobs or income at the same rate as the nation as a whole. Health care has emerged as a significant and growing source of employment"

The report on the economy was authored by Dr. William Tharp, Senior Policy Analyst with the Ochs Center and Associate Professor of Public Administration at the University of Tennessee at Chattanooga. The 2008 State of Chattanooga Region Report can be downloaded at the Ochs Center website - www.ochscenter.org. The development of the State of Chattanooga Region Report was generously supported by grants from the Lyndhurst Foundation, Benwood Foundation, Community Foundation of Greater Chattanooga, as well as funding to the Ochs Center from the United Way.