Tuesday, September 04, 2007

Tenn. Unemployment Rate Drops Slightly


NASHVILLE, Tenn. - The unemployment rate in Tennessee this Labor Day weekend is lower than a year ago.

It is down a full percentage point, which translates into more jobs, but only for some.
In the past year, a boom in the construction, leisure and hospitality sectors helped create thousands of jobs in Tennessee.

But people who work in the manufacturing sector took the biggest hit.

Officials with the Tennessee Department of Labor and Workforce Development said since last summer Tennessee has lost 8,500 manufacturing jobs.

Union officials said many of the jobs are going overseas and they're blaming trade agreements such as NAFTA and CAFTA.

The most recent announced plant closing in Middle Tennessee happened last week. Hartmann Luggage announced the closing of a factory in Lebanon by the end of the year. The Lebanon-based company said it will layoff 90 workers at the end of November.

Whirlpool is cutting 700 jobs from plants in Cleveland and La Vergne and this week Toshiba stops making television sets in Lebanon. The total job loss there is 150 workers.

"To me, on this Labor Day, it's kind of like middle-class America has been under attack, pushed down for the last 15 years now and we're on the edge of starting to see the silver lining behind the storm clouds," said Lewis Beck of the Nashville/ Middle Tennessee Central Labor Council.

Among the good news in manufacturing Saturn employees are supposed to return to work beginning early next year. General Motors announced the layoff could be a year to 18 months. It might be shorter. Saturn employs about 4,700 people.

"They told us they were bringing employees back between January and May of next year," said Rick Aites, a Saturn employee.

Many of the manufacturing job losses are due to operations moving overseas. Hartmann is moving luggage manufacturing to the Caribbean, Central America and China. Many of the Whirlpool jobs are going to Mexico.

The halt in production at Spring Hill's Saturn Plant has affected more than GM employees. The cutback triggered layoffs among many other auto-part-suppliers as well. Nearly 900 people lost their jobs at eight different suppliers across the state. Those workers could be called back when production restarts at the Saturn plant next year.

Labor leaders Monday said say they were also celebrating the increase in the minimum wage. In July the minimum wage went up 70 cents -- bringing the rate to five dollars and 85 cents an hour.

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