Tennessee Unemployment Rate Holds Steady at 3.4%

Tennessee’s unemployment rate remained at 3.4% in August, matching the state’s lowest rate of the year, according to the Tennessee Department of Labor and Workforce Development.

The seasonally adjusted rate was unchanged from July and was one-tenth of a percentage point lower than the rate recorded one year ago. Before July, Tennessee had not recorded an unemployment rate of 3.4% or lower since July 2024.

The state’s unemployment rate remained below the national rate of 4.1% in August.

Tennessee added 1,800 nonfarm jobs between July and August. The largest employment increases occurred in the leisure and hospitality, government, and construction sectors.

Over the past year, employers across the state added 16,400 jobs. Healthcare and social assistance recorded the largest gains, followed by administrative, support and waste services and leisure and hospitality.

The Tennessee Department of Labor and Workforce Development will release county-level unemployment figures for August on Thursday, September 24.