Tennessee Economic Analysis Reports

June 2026

Labor Force

Tennessee’s seasonally adjusted unemployment rate decreased to 3.5% in June from 3.6% in May. The labor force participation rate decreased from 59.6% in May to 59.4% in June. The number of people employed decreased by over 4,000 while the number of people unemployed decreased by about 2,300.

A year ago, the unemployment rate was 3.5% while the labor force participation rate was 60.5%. The total number of people in the labor force has decreased 35,900 since June 2025.

Over the year, the number of people unemployed increased 1,100 compared to an employment decrease of 37,100.

The U.S. unemployment rate decreased from 4.3% to 4.2% between May and June. The June labor force participation rate dropped to 61.5% from 61.8% in May.

Nonfarm Employment

Total nonfarm employment in Tennessee increased 2,500 jobs in June.  Private education and health services added 1,500 jobs, of which 900 were in healthcare and social assistance. Durable goods manufacturing and professional, scientific, and technical services both added 1,100 jobs in June. Leisure and hospitality added 1,000 jobs while retail trade added 600. Administrative, support, and waste services saw the largest decrease at 1,600 jobs, followed by a loss of 500 jobs in both transportation, warehousing, and utilities and finance and insurance.

Since June of last year, total nonfarm employment has increased 25,300 jobs. Healthcare and social assistance added the most jobs at 13,600 followed by leisure and hospitality at 8,600 jobs. Administrative, support, and waste services followed with an additional 6,400 jobs over the year. Other increases include state government (+4,000), durable goods manufacturing (+3,100), private educational services (+1,800), and construction (+1,400). The greatest decrease occurred in federal government at 3,300 jobs lost. Trade, transportation, and utilities and financial activities both lost 3,100 jobs over the year. Nondurable goods manufacturing followed with a decrease of 2,800 jobs. Other job declines occurred in local government (-1,900) and management of companies and enterprises (-1,300).