Tennessee Unemployment Rate Holds Steady at 3.6%

Tennessee’s unemployment rate remained at 3.6% in December, eight-tenths of a percentage point below the national rate, according to the Tennessee Department of Labor and Workforce Development.

The state’s seasonally adjusted rate was unchanged from November, when it also stood at 3.6%. A year ago, the rate was 3.7%. The U.S. unemployment rate for December was 4.4%, down slightly from 4.5% in November.

Over the past year, Tennessee employers added 23,000 nonfarm jobs, with the largest gains in professional and business services, followed by other services and state government. In December, total nonfarm employment decreased by 5,100 jobs, led by declines in trade, transportation and utilities, accommodation and food services, and manufacturing.

Tennessee has compiled a detailed analysis of December 2025 statewide unemployment data. County-level unemployment figures for all 95 counties will be released Thursday, January 29, at 1:30 p.m. CST.

Tennessee adults seeking to improve their job prospects can earn a High School Equivalency diploma through the New Pathways program, which offers five test options—more than any other state. Free adult education classes, including digital literacy and Integrated English Literacy and Civics Education (IELCE), are also available.