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TN Unemployment Increases to 6.7% Again in January

Press release from the Tennessee Department of Labor & Workforce Development; March 5, 2015:

NASHVILLE – Tennessee Labor & Workforce Development Commissioner Burns Phillips announced today the Tennessee preliminary unemployment rate for January was 6.7 percent, one-tenth of one percentage point higher than the December revised rate of 6.6 percent. The U.S. preliminary rate for January was 5.7 percent, also gaining one-tenth of one percentage point from the prior month.

Economic Summary

  • Over the past year, Tennessee’s unemployment rate was unchanged at 6.7 percent, while the national rate declined from 6.6 percent to 5.7 percent.
  • Total nonfarm employment increased 8.300 jobs from December, 2014 to January, 2015. The largest increases occurred in trade/transportation/utilities, professional/scientific/technical services, and manufacturing.
  • Over the year, nonfarm employment increased 71,700 jobs. The largest increases occurred in trade/transportation/utilities, professional/business services and manufacturing.
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Press Releases

TN January Tax Collections Exceed Budgeted Expectations

Press release from the Tennessee Department of Finance & Administration; February 13, 2015:

NASHVILLE, Tenn. – Tennessee’s total tax collections exceeded budgeted expectations in January, driven by strong holiday consumer spending and unexpected one-time collections in corporate taxes.  Finance and Administration Commissioner Larry Martin today announced that overall January revenues were $1.3 billion, which is $219.5 million more than the state budgeted.

“January sales tax collections, reflecting consumer spending that occurred during December, posted the largest monthly growth rate we’ve experienced for the past 33 months, and we recorded our strongest second quarter growth since 2006,” Martin said. “We believe this month’s growth was heavily influenced by several factors, including aggressive holiday retail marketing, continued reduction in the unemployment rate, lower gasoline prices, and an overall improving economy.

“It’s important to note that all corporate payments, including one-time payments, are received throughout the year based on estimates, and reconciled at a later point with their final corporate filings.  Although good news, one-time payments, when identified, are separated from our recurring tax base and used only to support one-time expenditures and uses. As always, the state will keep the budget in balance by working closely with the legislature.”

On an accrual basis, January is the sixth month in the 2014-2015 fiscal year.

The general fund was over collected by $214.1 million and the four other funds were over collected by $5.4 million.

Sales tax collections were $34.2 million more than the estimate for January.  The January growth rate was positive 7.80%. For six months revenues are over collected by $132.4 million. The year-to-date growth rate for six months was positive 6.76%.

Franchise and excise taxes combined were $171.4 million more than the budgeted estimate of $151.9 million. For six months revenues are over collected by $158.0 million.

Gasoline and motor fuel collections for January increased by 10.68% and were $2.4 million above the budgeted estimate of $71.3 million.  For six months revenues are over collected by $10.7 million.

Motor Vehicle Registration Tax collections were $3.0 million more than the budgeted estimate for January and the growth rate was positive 5.56%.

Tobacco tax collections were $2.7 million more than the budgeted estimate of $18.1 million, and for six months they are $2.6 million under the budgeted estimate.

Inheritance and estate taxes were over collected by $4.5 million for the month. Year-to-date      collections for six months are $13.9 million more than the budgeted estimate.

Privilege tax collections were $1.9 million less than the January estimate, and on a year-to-date basis, August through January, collections are $5.1 million above the estimate.

Business tax collections were $0.7 million more than the January estimate. For six months revenues are $13.8 million more than the budgeted estimate.

All other taxes were over collected by a net of $2.5 million.

Year-to-date collections for six months were $343.9 million more than the budgeted estimate. The general fund was over collected by $323.4 million and the four other funds were over collected by $20.5 million.

The budgeted revenue estimates for 2014-2015 are based on the State Funding Board’s consensus recommendation of December 17th, 2013 and adopted by the second session of the 108th General Assembly in April 2014. They are available on the state’s website at http://www.tn.gov/finance/bud/Revenues.shtml.

The Funding Board met on December 11, 2014 to hear updated revenue projections from the state’s various economists. The board met again on December 16 and adopted revised revenue ranges for 2014-2015. The revised ranges assume an over collection from the July 2014 budgeted estimate in the amount of $32.3 million to $73.4 million in total taxes. The revised ranges for the general fund recognize a negative growth in the amount of $6.6 million up to a positive growth of $27.5 million for the current fiscal year.

COLLECTION TABLES

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Press Releases

January TN Unemployment Unchanged from December: 10.7 Percent

State of Tennessee Press Release, Mar 4, 2010:

NASHVILLE – Tennessee Commissioner of Labor & Workforce Development James Neeley announced today Tennessee’s unemployment rate for January was 10.7 percent, unchanged from the revised December rate of 10.7 percent. The January rate a year ago was 9.1 percent. The national unemployment rate for January 2010 was 9.7 percent, down from the December rate of 10 percent.

“The state unemployment rate is holding steady for the month of January,” reported Labor Commissioner James Neeley. “While the unemployment rate continues to be high in Tennessee, we did see a slight increase in employment (+3,400), and two of the three largest gains in employment were in the manufacturing industry.”

Major Changes in Estimated Nonagricultural Employment December 2009 to January 2010

According to the Business Survey, 200 job gains occurred in plastic and rubber products manufacturing; 200 in fabricated metal products manufacturing; and 200 in federal government. Major employment decreases occurred in trade, transportation and utilities, down by 18,100; leisure and hospitality declined by 11,100 jobs; and professional and business services decreased by 9,900.

Major Changes in Estimated Nonagricultural Employment January 2009 to January 2010

Year-over-year increases occurred in health care and social assistance, up by 6,800; state government gained 1,100; manufacturing was down 31,800; trade transportation and utilities lost 28,800; and mining and construction decreased by 16,100.