UT’s Boyd Center finds TN business leaders upbeat about economy despite worker shortage

NASHVILLE, Tenn. (WKRN) — The latest nationwide jobs report shows a strong economy. The University of Tennessee’s Boyd Center surveyed business leaders, who are optimistic about the state’s economy, but they also acknowledged key issues that need to be fixed.

“What we’re able to do with the survey is get a little bit more under the hood,” said Dr. Don Bruce, director of the Boyd Center for Business and Economic Research.

Inflation has been one of the biggest problems tripping up the country’s economic engine the past few years. However, based on this new survey , Bruce said Tennessee business leaders are feeling upbeat.

“The pressures of inflation are still very much with us. Prices are higher than they were and not really projected to come back down, but the day-to-day pressures in terms of how businesses respond to that, they’re easing quite a bit,” Bruce said.

From Memphis to Johnson City, the number one concern the business community faces is being short 100,000 workers. Even if Tennessee keeps attracting out-of-state workers and schools pump out a skilled workforce, researchers said embracing new technology like artificial intelligence (AI) will also be a must for businesses.

“We’ve got no choice but to automate and use AI, and invest in those new technologies. Companies that do that the best and the fastest are going to be the most successful companies in Tennessee,” said Bruce.

In order to attract new workers, the housing and childcare shortages also need to be fixed in order to keep prices from spiraling upward, according to Bruce.

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Even with these challenges, the Volunteer State continues to lead the U.S. in GDP and employment, which has created nice momentum for our economy here at home.

“Tennessee’s business leaders historically have been much more optimistic about the state economy than they have been about the national economy, and that’s really born out in the data,” Bruce said.

The survey also shows business leaders shifting away from remote work. They fear it prevents mentoring and leadership development in the workplace.

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