Six years of year-over-year growth coupled with historically low unemployment rates indicate Tennessee’s economy won’t slow down anytime soon, according to a report released by the Secretary of State’s office.
There were 9,326 new entity filings in the third quarter of 2017, representing a 4.8 percent increase compared to the same time last year. Initial filings have had positive year-over-year growth for 24 consecutive quarters. Domestic limited liability corporations (LLCs), which are up 12.4 percent this quarter, account for more than half of all new entity filings.
“Every quarter these reports confirm that Tennessee’s leaders have created a wonderful climate where businesses can thrive. Hopefully, this marked success attracts more businesses to call the Volunteer State home,” said Tennessee Secretary of State Tre Hargett.
The Tennessee Quarterly Business and Economic Indicators report is created to provide a periodic snapshot of the state’s economy based on a variety of information, including new business data from the Division of Business Services.
There were 25,242 dissolutions filed during the third quarter of 2017, representing a 7.5 percent increase compared to the same time last year. This is a common seasonal pattern as many entities are administratively dissolved in August for failing to file annual reports.
Among the state’s four largest counties, Shelby County experienced the largest year-over-year growth at 17.2 percent with 1,868 initial filings for the third quarter. Davidson County had 2,220 initial filings. Knox and Hamilton counties saw 791 and 635 filings respectively. The four counties account for 5,514 new entity filings during the third quarter, which is a 7.8 percent increase compared to the same time in 2016.
The state’s unemployment remains at a record-breaking 3 percent in October after first hitting the milestone in September. Tennessee’s unemployment rate is now well below the current national average of 4.1 percent.
The national economy grew 3 percent in the third quarter compared to the quarter before it thanks to more jobs, growing housing starts, declining auto sales and falling gas prices nationally.