Tennessee Economic Analysis Reports

April 2026

April 2026 Summary

Labor Force

Tennessee’s seasonally adjusted unemployment rate remained steady at 3.6% in April. The labor force participation rate decreased from 60.0% in March to 59.7% in April. The number of people employed decreased over 13,400 while the number of people unemployed increased by about 1,100.

A year ago, the unemployment rate was 3.5% while the labor force participation rate was 60.6%. The total number of people in the labor force has decreased 17,800 since April 2025.

Over the year, the number of people unemployed increased 4,700 compared to an employment decrease of 22,500.

The U.S. unemployment rate remained at 4.3% between March and April. The April labor force participation rate decreased to 61.8% from 61.9%.

Nonfarm Employment

Total nonfarm employment in Tennessee increased 1,200 jobs in April. Construction added 1,900 jobs while durable goods manufacturing added 1,100. Accommodation and food services followed with 800 jobs added. Private education and health services added 600 jobs and professional, scientific, and technical services added 500. Local government saw the largest decrease at 2,500 jobs, followed by a loss of 1,100 jobs in financial activities. Arts, entertainment, and recreation and administrative, support and waste services each lost 600 jobs in April.

Since April of last year, total nonfarm employment has increased 900 jobs. Health care and social assistance added the most jobs at 9,500 followed by state government at 8,500. Administrative, support, and waste services added 6,400 jobs while arts, entertainment, and recreation added 3,600. Trade, transportation, and utilities saw the greatest loss at 5,700 jobs, much of which was driven by a loss of 4,200 jobs in retail trade. Manufacturing lost 4,800 jobs with 4,200 of those in nondurable goods manufacturing. Federal government followed with a loss of 4,400 jobs. Other losses include professional, scientific and technical services (-3,800), local government (-3,300), accommodation and food services (-2,700), and finance and insurance (-2,000).