Lost jobs in nonfarm employment in Tennessee will not be recovered until September 2013 at the present rate of growth, which is 2.1 percent.

That’s one of the conclusions of an economic outlook presented to the Tennessee Gas Association by Dr. David Penn, director of MTSU’s Business and Economic Research Center, on June 14.

Additionally, Penn says deflation will be a much bigger worry than inflation going forward.

Deflation prompts consumers to put off purchases in anticipation that prices will fall further.Borrowers must work harder to make their loan payments. Monetary policy becomes powerless.

Also, lending and spending spiral lower and lower as unemployment rises.