The CRER has released its updated forecasts for job growth in the Chattanooga metro area:
Partly because Chattanooga’s fourth quarter job growth was weaker than expected, the near term outlook has been downgraded. The CRER’s previous forecast was for job growth of at least 1.5 thousand per quarter throughout 2025, for a total of 6.7 thousand more jobs by the end of the year. The new forecast is for positive but weak job growth early in the year and for annual job growth of 5.3 thousand.
The consensus for 2026 is that inflation will ease and Fed policy will loosen, providing boosts to industrial production and the local economy. The 7.1 thousand additional jobs forecast for Chattanooga in 2026 are under that ideal scenario.
The shift in the 2025 forecast is a good reminder of how quickly things can change in the economy. Looking ahead to 2026, it sounds like easing inflation could really help Chattanooga’s growth. Do you think the city has any specific industries that could accelerate this recovery?
If I had to pick one industry to grow faster than usual, it would be health care. The sector is not as large as might be expected and the recent privatization of Erlanger might give it greater ability to expand its footprint.