Report: Northeast TN and Southwest VA residents income increasingly reliant on government assistance

King University researchers are finding there’s a shift in more of the region’s residents receiving financial assistance from government programs for their income.

A study by the Bristol, TN based institution reported that 50 years ago, 75-80% of Northeast Tennessee and Southwest Virginia workers income was earned income, or wage based, which has now dropped to 57% and 43% in Northeast Tennessee and Southwest Virginia respectively as of 2019. Income from government transfer payments through items like Social Security and Medicare have jumped to over 25% in both parts of our region.

The study concludes that an increase in transfer payments are a disturbing signal for the area, which suggests a possible lack of economic opportunity and a growing divide between urban and rural America for job and income growth.

To read the published by the King University Institute for Regional and Economic Studies, click here.