Key Facts
- Per Capita Real GDP
- $33,742 Rank: 34/50 (2007)
- Population
- 6,214,890 Rank: 17/50 (2008)
- Per Capita Personal Income
- $32,304 Rank: 35/50 (2006)
- Unemployment Rate
- 4.90% Rank: 32/50 (2008)
- Business Tax Climate Index
- Rank: 16/50 (2008)
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Tennessee: Introduction
Tennessee is located in the southeastern United States. It was the 16th state to enter the Union on June 1, 1796. In reflection of the vast regional differences, the state is divided into three grand divisions recognized under state law: East Tennessee, Middle Tennessee and West Tennessee. Each division has their own regional center or centers: Chattanooga and Knoxville in East Tennessee, the state’s capital Nashville in Middle Tennessee, and Memphis in West Tennessee. Although no single city or group of cities dominates the state, the majority of the population lives in urban areas.
Until the mid 20th century, Tennessee was mainly an agricultural state. Today service industries and manufacturing are dominant industries. This shift in leading industries was encouraged by the development of the Tennessee River basin under the Tennessee Valley Authority (TVA). The TVA brought diverse programs to Tennessee sparking the development of a variety of new industries.
Within the manufacturing industry, the production of motor vehicles and parts is the principal activity. The production of durable goods, such as automotives, has been growing steadily as a contributor to GDP in the past decade. Many companies are attracted by Tennessee’s low costs of labor, energy, and materials. These newcomers are generally located either in the eastern part of the state or around the four main cities of Memphis, Nashville, Chattanooga, and Knoxville.
