Tennessee Begins 2026 with Lower Unemployment Rate

Tennessee started 2026 with a slight drop in unemployment, according to new data from the Tennessee Department of Labor and Workforce Development.

The state’s seasonally adjusted unemployment rate for January was 3.5 percent, down one-tenth of a percentage point from December. The rate is also unchanged from one year ago and remains well below the national unemployment rate of 4.3 percent.

Officials say Tennessee’s unemployment rate remained steady throughout 2025, ranging between 3.5 percent and 3.7 percent each month.

Over the past year, employers across the state added 5,900 nonfarm jobs. The largest gains were seen in the health care and social assistance sector, followed by state government and the arts, entertainment, and recreation sector.

From December to January, total nonfarm employment increased by 7,200 jobs, with the biggest growth in private education and health services, professional and business services, and financial activities.

The department has also released a comprehensive analysis of the January unemployment data, along with county-level commuter data that provides insight into where Tennesseans work, how far they travel, and how regional labor markets are connected.

Officials say the data can help employers better understand workforce availability and assist job seekers in identifying opportunities beyond their home counties.

Unemployment data for all 95 counties is scheduled to be released Thursday, April 9 at 1:30 PM CDT.