BY CHAD JENKINS
TML Deputy Director
&
KEVIN KRUSHENSKI
TML Research Analyst
This report will be part of an ongoing summary of recent and relevant economic commentary and data to assist municipal officials. While it should not be viewed as an exhaustive analysis of all data, we hope it will serve as a guide for your local governments during this time.
Tennessee Economy in General
The COVID-19 pandemic is constraining Tennessee’s economic activity. Over the last four weeks, new unemployment claims totaled 324,501 in Tennessee and 22 million nationwide. The most losses on record. An April 15 Wall Street Journal survey of 57 economists states that a second round of layoffs has begun, and approximately 14.4 million job reductions may be added to the first wave of 22 million with an unemployment rate nearing 13% by June. This suggests that a substantial number of additional Tennesseans may become unemployed in the coming weeks. Economists caution that Tennessee unemployment rates may increase to historically high levels.
Earlier this month, the Howard Baker Center for Public Policy and the UTK Coronavirus Outbreak Response Team (CORE) issued a report that stated Tennessee is likely already in a recession and this pending recession is likely to be deep.

By examining policy and politics through a nonpartisan lens, the Baker Center continues the groundbreaking work of its namesake, Senator Howard H. Baker Jr., who was nicknamed “The Great Conciliator” for his ability to cross party lines and encourage lawmakers to cooperate on key issues affecting the public good. In the spirit of Baker’s work, the center offers a number of public lectures and programs on topics across the political spectrum, with a focus on its three main areas: Energy & Environment, Global Security and Leadership & Governance.