Tennessee Unemployment Rate Falls to Two-Year Low

Tennessee’s unemployment rate fell to its lowest level in two years during July, according to new data from the Tennessee Department of Labor and Workforce Development.

The state’s seasonally adjusted unemployment rate was 3.4%, down one-tenth of a percentage point from both June and July of last year. The last time Tennessee’s unemployment rate was 3.4% or lower was in July 2024.

Tennessee’s rate also remained below the national unemployment rate of 4.1%.

Employers across the state added 21,300 nonfarm jobs over the past year. The largest employment gains occurred in healthcare and social assistance, followed by administrative, support and waste services and durable goods manufacturing.

Over the past month, however, nonfarm employment decreased by 400 jobs. The largest declines were reported in leisure and hospitality, retail trade and nondurable goods manufacturing.

The state will release July unemployment rates for all 95 Tennessee counties on Thursday, August 27.