UT report shows signs the recession is easing

UT report shows signs the recession is easing

By KRISTYN CADDELL
6 News Reporter 

KNOXVILLE (WATE) -- A new report from the University of Tennessee shows signs the recession is finally easing.

The report comes out three times a year and it provides an economic forecast for state and local governments. 

The most recent report is the first one in a long time that shows signs the economy is turning around.

"We're now looking at a situation where we think the US economy has bottomed out in fact the recession is likely over," explains UT Economist Matt Murray.

But says Murray there is still some grim news. "This has been such a severe economic downturn it is going to take a considerable period of time for the state to return to pre-recession levels of economic activity."

The unemployment rate in the state fell from 10.7 percent in August to 10.5 percent in September, but Murray says it is still a difficult labor market.

"Jobs are scarce and jobs continue to be scarce and I expect we will be above 10 percent unemployment well into 2011," he says.

As we approach the Thanksgiving and Christmas holidays, Murray says consumers can expect to see good bargains.

"They are going to have to discount and some instances heavily discount to get people to buy," explains Murray.

The economy is on an upward slope he says, but the climb to get things back they way they were before the recession could take two years.  

More:

• Tennessee Business and Economic Outlook, Fall 2009