Economic report predicts sluggish job growth in Chattanooga area
The graphics of UTC’s economic report on job growth. (Courtesy: UTC Center for Regional Economic Research)
CHATTANOOGA, Tenn. (WDEF)- How does the job market look for the Chattanooga area in the months ahead?
A new report suggests that while we do not expect to see losses, the amount of job growth is expected to be sluggish.
Dr. Howard Wall of the UTC Center of Economic Research releases a quarterly job growth report for the Chattanooga area.
Dr. Wall said, “The forecast really depends on what happens nationally. That’s kind of the sticking point for the local economy.”
He says that the projected growth for 2026 is slower than normal.
Dr. Wall expects 5,000 new jobs for the Chattanooga area this ye
This is more than double the growth seen in 2025.
However, he says the average growth per year in our area is 7,000 new jobs per year.
This, Dr. Wall says, mirrors national trends.
Dr. Wall said, “Manufacturing has been slow for a couple of years and that’s nationally not just locally, although there’s special cases locally, and manufacturing has not been helped at all by tariffs, despite that being the stated purpose of them.”
However, he does say that investment in new technologies could set up the Chattanooga area for a resurgence in new jobs in the years to come.
Dr. Wall said, “We are at the cutting edge of a few industries like like quantum and we know we have the fastest network. There are a lot of things that we can take advantage of as long as the national economy picks up.”
He says that ultimately, these job growth numbers, while below average, could be a sign of a strengthening economy.
Dr. Wall said, “2025 was a pretty weak year and we should be recovering through 2026 if the national economy is fine. It’ll take a few quarters so the next quarter that we’re in now probably still be pretty weak. Second quarter, a little bit stronger and then by the fourth quarter and into 2027, hopefully will be back to normal.”
