Labor Market Pulse · Human Resources · September 2026
Human Resources Labor Market Report: Kingsport-Bristol-Bristol, TN-VA MSA — September 2026
Kingsport-Bristol unemployment ticks up as non-compete ban reshapes retention.
Metro unemployment rose to 4.0% in June from 3.3% in spring, even as Tennessee's new non-compete ban and a $26.99 local wage base (versus $33.54 nationally) push retention strategy toward pay and mobility rather than contracts.
Free archive edition. Published by WageScape as sent to subscribers; data as of September 2026.
Key indicators
- Metro unemployment rate: 4.0% — Up from 3.3% in April/May 2026, above TN's 3.4%
- Local average hourly wage: $26.99 — vs. $33.54 national average (May 2025 data)
- Manufacturing employment: 20.7K jobs — Largest WARN-exposed sector statewide: 3,466 workers
- Non-compete coverage threshold: $70,000 — HB 1034 bans non-competes below this, effective July 1
Key takeaways
Metro unemployment uptick doesn't signal slack hiring conditions.
The rise to 4.0% in June from 3.3% in spring is a modest shift, not a reversal — Tennessee's statewide rate held at 3.4% in August, and 89 of 95 counties remain below 5%. Treat this as early softening worth monitoring, not a green light to ease sourcing urgency.
Non-compete ban reshapes retention economics for the bulk of the local workforce.
With manufacturing, office support, and food service occupations making up roughly a third of area employment and median pay well under $70,000, HB 1034 effectively strips non-competes from most of this metro's labor force. Compensation structure and internal mobility now carry retention weight that contracts used to.
Recruiter and HR Coordinator pay are repricing faster than core wage growth.
Both roles show significant upward movement locally — Recruiter advertised pay up significantly to $54,080, HR Coordinator to $43,680 — outpacing the metro's broader wage trajectory. That gap is consistent with employers investing in talent acquisition capacity even as overall hiring urgency nationally has eased, suggesting local employers still see sourcing as a bottleneck.
Local wage base keeps this metro exposed to out-of-area poaching.
At $26.99/hour average versus $33.54 nationally, Kingsport-Bristol sits meaningfully below national pay levels, and remote or hybrid roles tied to higher-wage metros create ongoing attrition risk. Pay transparency in job postings nationally makes this gap more visible to local candidates than it was even a year ago.
Median advertised pay by role — Kingsport-Bristol-Bristol, TN-VA MSA
| Role | 25th percentile | Median advertised pay | 75th percentile | Metro trend | National median |
|---|---|---|---|---|---|
| Compensation Analyst * | $67,600 | $91,500 | $103,510 | Significant increase | $101,727 |
| HR Business Partner | $51,367 | $66,739 | $89,438 | Stable | $83,766 |
| Benefits Manager * | $87,391 | $114,729 | $118,412 | Significant increase | $117,888 |
| HRIS Analyst * | $76,921 | $84,846 | $96,308 | Moderate increase | $97,555 |
| HR Coordinator | $42,057 | $43,680 | $43,748 | Significant increase | $50,000 |
| Recruiter | $42,792 | $54,080 | $54,080 | Significant increase | $68,167 |
| Payroll Specialist * | $47,293 | $56,160 | $60,477 | Moderate increase | $59,855 |
* State-level figure shown where metro postings were too few.
WageScape's median is calibrated to correct for spurious low-value postings (reported as the 60th percentile of raw advertised pay). Download: CSV · JSON
Local market conditions
Kingsport-Bristol's unemployment rate climbed to 4.0% in June 2026 from 3.3% in April and May, a shift that tracks the national cooling trend but puts the metro above Tennessee's statewide 3.4% rate for the first time this year. Manufacturing remains a structural anchor at 20.7 thousand jobs, but the metro's hourly wage base of $26.99 against a $33.54 national average means local employers compete from a pay-level disadvantage just as Tennessee's new non-compete ban (effective July 1, under $70K threshold) removes a retention tool many manufacturers and healthcare systems have relied on.
What it means
Rising local unemployment alongside a still-tight statewide labor market suggests Kingsport-Bristol employers face a mixed signal: more candidate flow may be available, but competing for skilled talent against higher-wage metros like Davidson County (+6.6% wage growth) remains difficult. HB 1034's non-compete restrictions mean retention strategy for sub-$70K roles — a large share of this metro's office, food prep, and production workforce — now depends on compensation structure and development paths rather than legal restriction. Consider reviewing total rewards packages for frontline and production roles where non-competes previously anchored retention, shifting investment toward advancement pathways and benefits differentiation instead.
Looking ahead
Early indicator: Watch whether the June uptick to 4.0% unemployment persists into July/August metro data (expected with BLS's typical lag) or reverses as seasonal hiring in leisure and hospitality resumes. A sustained rise would ease sourcing pressure for the first time in over a year.
Policy compliance deadline: HB 1034's non-compete ban took effect July 1 — HR teams should confirm existing agreements for sub-$70K employees are void and that offer letters and handbooks reflect the change before Q4 hiring cycles begin.
Worth watching: TikTok's October 5 Nashville office closure (250 workers) is Davidson County-specific, but it signals continued tech/info-sector contraction statewide — a trend that could eventually push displaced professional talent toward East Tennessee's lower cost-of-living metros.
Emerging pressure point: Manufacturing accounts for the largest share of Tennessee's WARN filings this year (22 notices, 3,466 workers statewide). Given manufacturing's structural role in Kingsport-Bristol's economy, monitor regional WARN activity closely for any local spillover.
Methodology
Advertised pay from active employer job postings, not survey data. WageScape's median is calibrated to correct for spurious low-value postings: distribution analysis shows roughly the lowest 10% of raw values are erroneous entries, so the reported median is the 60th percentile of raw advertised pay. WageScape observes 98% of U.S. job openings daily.
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