Rick Locker of the CA says the University of Tennessee report on the economy of the state is NOT encouraging.

On the bright side, the 2010 report projects modest growth in Tennesseans’ personal income and in state sales tax collections, state government’s primary revenue source.

But the job picture is gloomy for those who have lost their jobs and those who may still.

“The state unemployment rate will likely average 10.4 percent (in 2010) and remain stuck above 10 percent through 2011. This will translate into more than 300,000 unemployed people in Tennessee in 2010 and 2011 and put sustained pressure on the state’s unemployment insurance trust fund,” the UT report says.

The only sectors expected to see job growth in the coming year are wholesale trade, professional and business services, education and health services, and government.

The report says that the state’s unemployment rate is expected to “remain stubbornly high for several years to come, not falling below 7 percent until 2016.”

via UT predicts 2 more years of unemployment above 10 percent » The Commercial Appeal.