Tennessee Unemployment Rate Falls to 3.5% in June

Tennessee’s unemployment rate declined to 3.5% in June, matching its lowest level of the year, according to the Tennessee Department of Labor and Workforce Development.

The seasonally adjusted unemployment rate fell one-tenth of a percentage point from May and was unchanged from June 2025.

Tennessee’s unemployment rate remained well below the national rate of 4.2% in June.

Over the past year, Tennessee employers added 25,300 nonfarm jobs. The largest employment gains were in the health care and social assistance, leisure and hospitality, and administrative, support, and waste services sectors.

From May to June, the state added 2,500 nonfarm jobs, with the biggest increases occurring in private education and health services, durable goods manufacturing, and professional, scientific, and technical services.

The Department of Labor also reminded veterans transitioning to civilian careers that specialized employment and training services are available through Tennessee’s American Job Centers and the Jobs for Veterans State Grants program.

County unemployment rates for June are scheduled to be released on Thursday, July 23.