Tennessee Unemployment Rate Holds Steady for Third Month

NASHVILLE – Tennessee’s unemployment rate held firm at 3.4% for the third month in a row, according to new data from the Tennessee Department of Labor and Workforce Development (TDLWD).

The state’s seasonally adjusted unemployment rate in September was unchanged from the previous two months and down one-tenth of a percentage point from a year ago. Before July, the last time Tennessee posted an unemployment rate of 3.4% or lower was in July 2024.

The state’s rate remains well below the U.S. rate, which was 4.2% last month.

Over the past year, Tennessee employers added 28,400 nonfarm jobs. The largest gains were in the leisure and hospitality sector, followed by the healthcare and social assistance sector, and state government.

Over the month, total nonfarm employment increased by 2,500 jobs, with the biggest increases in leisure and hospitality; professional, scientific, and technical services; and government.

TDLWD has compiled an analysis of the September 2026 unemployment data.

One year ago, Gov. Bill Lee launched TNWorks, a collaborative effort among six state agencies to provide Tennessee employers with customized solutions to meet their workforce needs. TNWorks has already served 6,300 employers in its first year.

Now comes the TNWorks Talent Accelerator, an initiative designed to expand access to training, create jobs, and increase wages across Tennessee.

The new TNTalent program is part of the accelerator. With TNTalent, Tennessee-based employers can tap into $5 million in federal funding to support workforce development in three high-demand industries: nuclear energy, AI infrastructure, and advanced manufacturing.

Employers interested in learning more can visit TNWorks.com for additional information or to request a meeting.

Tennessee will release September 2026 county unemployment data on Thursday, October 22, 2026, at 1:30 p.m. CDT.