Published on 2008-06-09
Tennessee's economy was predominantly agricultural until the 1930s, when industry and manufacturing began a period of steady growth that wouldn't slow until about sixty years later. Since the mid-1990s, the state's economy has diversified significantly, with tourism, staffing/recruiting and finance jobs as principal areas of employment growth. An August 2007 employment report by the Tennessee Department of Labor and Workforce Development shows that the three largest industry sectors for the creation of jobs in Tennessee are trade, transportation and utilities; education and health services; and manufacturing.
The intervention of the federal government was crucial both during and after the Great Depression in Tennessee's transition to a more manufacturing and service-based economy. In 1933, the founding of the Tennessee Valley Authority, now America's largest public power company, helped to modernize the state and create thousands of much-needed Tennessee jobs through the building of dams, the improvement of farming methods, and the influx of companies attracted by the state's developing infrastructure. Likewise, WWII advanced Tennessee's industrial sector and prompted the building of the atomic research facility that would become the Oak Ridge National Laboratory, which today remains a notable source of Tennessee research jobs.
Today, despite ongoing diversification, the agricultural and manufacturing industries remain leading contributors to Tennessee's export revenue. Cotton, tobacco and soybeans are primary crops, but all three are surpassed by beef and dairy cattle in terms of annual income. Nissan and General Motors have been major sources of Tennessee manufacturing jobs, though buyouts have reduced automotive employment over the past few years.
Not all of Tennessee's exports are industrial. Nashville and Memphis have been of vital importance in the development of country, blues and jazz music in the U.S. and overseas, and music jobs are a principal source of employment in both cities. Publishing, finance and education are important sectors for the Nashville jobs market. The state capital is also a national capital for the healthcare industry. Medical companies create around 100,000 healthcare jobs in Nashville, which is home to Hospital Corporation of America, the largest private operator of medical facilities in the world.
Memphis is Tennessee's largest city. As the home of the world's busiest cargo airport and the 4th largest inland port in the U.S., it's also a major source of shipping jobs. FedEx and International Paper are headquartered in Memphis. The city's central location and reputation for smart economic development have contributed to the creation of Memphis jobs via both small business startups and business migration.
Knoxville, Chattanooga, Clarksville and Murfreesboro are major population centers in TN. Education, manufacturing and healthcare are leading industries for Chattanooga jobs. The Tennessee Valley Corridor is a notable source of high-tech jobs in Knoxville.
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