Time to ask for a raise: Nashville hits historically low unemployment rate

Nashville's unemployment rate dropped to a historic low of 2.2 percent in April, the lowest rate of any major metro areas in the U.S.

For nine consecutive months, Nashville's unemployment rate has fallen below 3 percent, illustrating the city's strong business growth and increased demand for workers. The national unemployment rate was 3.7 percent in April, down from 4.1 percent in April 2017.

More: Nashville's job growth third fastest in 2017 among large cities

“Having the lowest unemployment rate in our history highlights Nashville’s tremendous prosperity and success," Mayor David Briley said in a statement. "I am committed to continuing this success by creating new economic opportunities and working to build wealth for all of our residents."

San Francisco and San Jose ranked just below Nashville, both with a 2.4 percent unemployment rates.

The number of employed people in the Nashville area increased by about 35,000 to more than 1 million in the past year, according to Bureau of Labor Statistics data.

The low unemployment streak exceeds that of 1999, when the rate remained below 3 percent for five months.

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"Low unemployment rates are good news to the labor force itself," said Bill Fox, an economist at the University of Tennessee at Knoxville. "When you get a rate that low, it means everyone who has skills and wants a job, has one or can find one easily."

For employers, the low unemployment rate environment means it is more difficult to find workers and that pay is likely to increase, Fox said. With so many people moving to Nashville and residents who have been on the sidelines deciding to seek employment, the rate is unlikely to drop much lower, he said.

"People move to where there are jobs and high quality of life and that is going to make Nashville continue to be an attractive place," he said. "With continued strong growth in employment, people will keep moving into the area. Employers will find additional employees."

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Earnings in Nashville are above the national average and income is rising relative to the national average, Fox said.

"We are at the point where you are going to begin to see wages coming up," he said. "It is a good time to look for more pay from your employer because odds are you can find another job."

Reach Jamie McGee at 615-259-8071 and on Twitter @JamieMcGee_.