Unemployment in Tennessee Drops to a New Record Low in May

The Statewide Unemployment Rate Fell to an All-Time Low of 3%
Thursday, June 20, 2024 | 01:30pm

NASHVILLE – Tennessee marked a milestone in May when the statewide unemployment rate dropped to a historic low level and set a record, according to the Department of Labor and Workforce Development (TDLWD).

The rate decreased by 0.1 of a percentage point between April and May to 3% and made history by besting any jobless number since the Federal Government began tracking the statistic in 1976.

"Tennessee's booming economy and strategic investments in workforce development and job creation have set the standard for success nationwide,” said Gov. Bill Lee. “Now, we're making history with record-low unemployment, ensuring Tennessee remains a beacon of opportunity, security, and freedom for all."

The state's unemployment rate dipped to the previous all-time low of 3.1% in April 2024 after first reaching that record level one year earlier. The rate held steady at 3.1% for three consecutive months in 2023.

The record-setting low unemployment was coupled with continued job growth across the state.

Tennessee employers created 3,300 new nonfarm jobs between April and May. The accommodation and food services sector was responsible for most of those new jobs. The professional, scientific, and technical services sector was the next top job creator in May, followed by the healthcare and social assistance sector.

In a year-to-year comparison, employers added 8,000 nonfarm positions to their payrolls during the last 12 months. The education and health services sector saw the biggest increase during the year, followed by the leisure and hospitality sector, and then the trade, transportation, and utilities sector.

“Our state’s robust economy has created so many great job opportunities for Tennesseans looking for work or for those who want to improve their employment situation,” said TDLWD Commissioner Deniece Thomas. “Tennessee has nearly 80 American Job Centers where career specialists can work with individuals to find their best path to new employment .”

TDLWD has a complete analysis of May’s historic unemployment data available here.

Nationally, the unemployment rate did not fare as well as it did in Tennessee. Across the United States, the seasonally adjusted jobless number inched up by 0.1 of a percentage point from 3.9% in April to 4% in May.

The state of Tennessee will release the unemployment data for all 95 counties on Thursday, June 27, 2024, at 1:30 p.m. CDT.