Tennessee Absorbs Mortgage Industry Job Losses

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Real Estate Agent with Benchmark Realty TN 288457

Nationwide, about 130,000 job cuts have been announced in the financial industry this year, with 54 percent of them coming from mortgage or subprime lenders, according to a report this week by outplacement consultant Challenger, Gray & Christmas.

But the fallout has not been so pronounced in Tennessee, where the finance and insurance sector lost 400 jobs between August 2006 and August 2007, a 0.4 percent decline, according to the state Department of Labor and Workforce Development.

"A job loss to a person who is losing their job is critical,'' said Linda Davis, a statistical analyst supervisor for the state labor department, who called the employment picture for the financial industry stable in Tennessee.

"But if you look at the figures of people losing jobs, somewhere else may be hiring. We're just not seeing those losses across the board."

Investors began pulling their money out of mortgage-backed securities earlier this year amid climbing defaults and a softening U.S. housing market, causing companies such as SouthStar to run out of money to fund loans.

Meanwhile, the U.S. Department of Labor on Friday reported better job growth in September and revised figures upward for August, easing worries that the economy is headed toward a recession.

Payrolls grew by 110,000 in September after an 89,000 increase in August, the Labor Department said. The August figure was originally reported as a decline.

"That's going to take away a lot of the anxiety for those of us who watch the economy,'' said Matthew Murray, a professor of economics at the University of Tennessee.

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Vicky Poe
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Why has Tennessee been hit so hard?
Oct 07, 2007 02:10 PM #1
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