By: The Research Center at the Nashville Area Chamber of Commerce
Workforce and Economic Growth
Workforce expansion, a diversified economy, and company relocations are several important factors that contribute to the success of a local economic ecosystem. The vitality of a region is directly correlated with its ability to attract and retain talent. The Nashville/Middle Tennessee region has been fortunate with a robust workforce which is directly tied to its economic growth and success. Nashville has consistently ranked among the top large metropolitan areas for employment expansion, supported by a diversified economy that includes strong sectors in healthcare, music and entertainment, technology, and advanced manufacturing. As of April 2025, Nashville held the #2 spot among large U.S. metros (with populations of one million or more) for the lowest unemployment rate at just 2.4%—second only to Oklahoma City at 2.3%. The expanding labor force in the Middle Tennessee region reflects a vibrant economy with ample job opportunities, business confidence, and regional competitiveness. As companies continue to relocate and expand in the area, Nashville’s economic landscape is increasingly defined by innovation, collaboration, and a growing talent pipeline that helps meet the needs of both existing industries and emerging sectors.
Economic Mobility and Quality of Life
Improvements in housing, education, and transportation support a region’s workforce, enhance economic mobility, and increase quality of life measures. The educational system trains and provides the skills needed for workers to attain high-wage and high-quality jobs. Just as essential is the availability of income-aligned housing—ensuring that workers can afford to live in or near the communities where they are employed. Transportation infrastructure is another critical component to improving economic mobility and quality of life throughout the region. Without reliable and efficient transit options, workers face barriers to accessing employment, particularly in rapidly growing metro areas like Nashville. In recent years, both housing affordability and transportation access have emerged as top concerns for Nashville’s community leaders. According to INRIX traffic data, Nashville drivers spent an average of over 63 hours—more than two and a half days—sitting in traffic in 2024, ranking the city #27 nationally for traffic congestion and #11 among U.S. metros. Commute times have also lengthened, with the mean travel time to work rising to 28.3 minutes in 2023, a 4.4% increase from the year before. The passage of the transit referendum in November 2024 marked a significant step forward in addressing these challenges.
The median home price in Nashville has held steady, ranging narrowly between $490,000 and $500,000 for the past six months, with the median price holding at $500,000 as of April 2025. While the post-COVID housing frenzy has given way to a more balanced market, prices remain elevated, reflecting persistent demand and limited supply. Despite rising interest rates and broader economic pressures, the stability of home prices suggests continued confidence in the region’s growth trajectory.
Together, these trends underscore the importance of coordinated efforts across housing, education, and transportation to ensure that Nashville’s workforce—and its economy—can thrive long term.
Childcare in Middle Tennessee
In addition to rising housing costs and traffic congestion, childcare is a third challenge that is equally critical to the Nashville region’s economy. While often overlooked in infrastructure and workforce conversations, access to affordable, quality childcare is foundational to maintaining a strong labor force—especially for women in our region.
According to Census ACS 1-year estimates, labor force participation among women with children under 6 has been consistently lower than those with older children. For example, in 2023:
- Women with children under age six only had a participation rate of 74.4%
- Women with children ages six to 17 only had a participation rate of 80.1%
This gap—nearly 6 percentage points—highlights the strain childcare needs place on parents, particularly mothers, during the early childhood years. The dip is even more pronounced when compared to earlier years, such as 2017, when participation among women with young children peaked at 80.4%, suggesting that availability, affordability, and accessibility of childcare have become more prominent barriers over time.
Addressing the childcare crisis is just as essential as solving the housing and transit challenges. Without adequate childcare, parents may be forced to reduce hours, decline job opportunities, or leave the workforce altogether—hurting families, employers, and the broader economic landscape.
In communities across the region, access to childcare does not meet demand, especially for families where both parents work and have children under age six. Figures 7-9 below illustrate the childcare deficit across the Middle Tennessee ZIP codes and counties, showing a clear mismatch between the need and availability of childcare. The maps highlight ZIP codes with numbers of children under age six who have both parents working, the deficit in needed childcare accessibility, and the currently available childcare spots. In these areas, especially the darker ones, it is likely that families have access to reliable childcare, which makes it easier for both parents to work. The heat map data reveals that zip codes in Davidson, Rutherford, and Williamson Counties have the highest numbers of young children with both parents in the workforce, creating immense pressure on local childcare systems. While these areas have a higher number of childcare providers, the demand far outpaces supply. For instance, Davidson County alone shows a deficit of nearly 2,750 childcare spots—even though the area offers over 13,000 total spots, the population of children needing care is significantly higher. This illustrates that dense urban centers are not immune to shortages, as the scale of need overwhelms existing infrastructure. In contrast, several suburban zip codes surrounding Nashville show either childcare surpluses or smaller deficits, suggesting that targeted investments or a higher density of providers may be helping to close gaps. Meanwhile, rural areas—especially in counties like Hickman, Smith, Macon, and Cannon—consistently show negative availability. These regions often lack sufficient providers altogether, leading to long waitlists and travel distances, creating what’s effectively a childcare desert.
As Middle Tennessee continues to grow, the success of its economic ecosystem will depend not only on housing, education, and transportation—but also on the often-overlooked backbone of the labor force: childcare infrastructure. Without adequate, affordable, and accessible childcare, families—especially working mothers—face real barriers to participation in the workforce.
Just as housing and transit investments have shaped the region’s success, strategic investment in childcare is essential to building a resilient, inclusive, and competitive economy for the future. For Nashville and the surrounding counties to truly thrive, childcare is critical as a core element of economic infrastructure.
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