The Johnson City and Kingsport-Bristol metro areas continued adding jobs over the past year, even as hiring across the nation nearly stalled. Healthcare and hospitality supported growth in both local markets, but the region’s increasing dependence on a small number of industries could create challenges later this year.
The Johnson City metro area added approximately 700 jobs between June 2025 and June 2026, increasing employment from 86,000 to 86,700. Retail trade led the market by adding about 400 jobs—an especially notable gain because retailers in many other markets have reduced staffing as consumers increasingly shop online.
Private education and healthcare added another 300 jobs in Johnson City, while leisure and hospitality gained approximately 200. Manufacturing recorded a small increase, but employment declined slightly in construction, information, and professional and business services. Most other sectors remained unchanged.
Kingsport-Bristol added approximately 800 jobs during the same period, growing from 128,700 to 129,500. Its strongest gains came from professional and business services, which added about 600 jobs. Private education and healthcare followed with 500 new jobs, while leisure and hospitality added approximately 300.
Unlike Johnson City, Kingsport-Bristol lost retail jobs. Transportation and utilities also declined, along with smaller losses in construction, wholesale trade, information, and financial activities. Manufacturing held steady at approximately 20,800 jobs—an important source of stability because factory employment represents a larger portion of the Kingsport-Bristol economy.
Together, the two metro areas present contrasting pictures. Johnson City is increasingly supported by consumer spending, while Kingsport-Bristol relies more heavily on professional services. Both markets, however, continue to depend on healthcare and hospitality.
The headline employment totals declined from May to June, but the drop appears seasonal rather than an indication of broader weakness. Government employment typically falls when the school year ends, and the figures are not seasonally adjusted. Excluding government payrolls, both metro areas added private-sector jobs during June.
Nationally, employers added only 57,000 jobs in June, well below economists’ expectations of 115,000. April and May totals were also revised downward by a combined 74,000 jobs. Although unemployment declined to 4.2%, the decrease was largely caused by people leaving the labor force rather than finding employment.
The Tri-Cities hospitality sector performed particularly well compared with the nation. Leisure and hospitality lost 61,000 jobs nationally amid weak summer hiring, while both local metro areas added jobs in the sector.
Healthcare remains the region’s most important sector to watch. National healthcare hiring slowed below its typical pace in June. If that slowdown reaches Northeast Tennessee, it could weaken the primary source of recent job growth in both metro areas.
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