State: Tennessee sees 'historic surge' in new business filings

Tennessee Has The Highest Sales Tax Rate In The Nation
Posted at 2:09 PM, May 27, 2021
and last updated 2021-05-27 15:09:35-04

NASHVILLE, Tenn. (WTVF) — State officials say new businesses filings for the first quarter of this year have surged compared to the first quarter of 2020.

Tennessee Secretary of State Tre Hargett’s office announced the update Thursday, saying new business filings for the first quarter of 2021 grew 55.1% from 2020 first quarter filings-- which they say is the largest year-over-year gain in the 28-year history of this data being collected.

Hargett’s office said the "historic surge" signals a "renewed confidence in the economy" as the state continues to rebound from the pandemic.

According to the state’s Quarterly Business and Economic Indicators report, 19,652 entities were filed, making it the highest quarterly total on record.

"This data is an encouraging sign and a strong vote of confidence by Tennesseans and people worldwide investing in our state’s business and entrepreneur-friendly environment,” said Secretary Hargett.

The state says Shelby County saw the largest number of new filings, followed by Davidson, Knox and Hamilton counties.

According to the state, national data indicates that online businesses grew substantially during the pandemic, which they say likely explains Tennessee's sustained business growth through 2020.

Tennessee’s unemployment rate is currently at 5%, which the state says continues to edge down from its 15.8% high one year ago but remains above pre-pandemic levels.

A little more than 6,000 new unemployment claims were filed last week in Tennessee, the lowest increase in new claims since November. The Tennessee Department of Labor and Workforce Development said the number of continued claims is currently at 50,443.