Tennessee Unemployment Rate Falls to 3.5%
State Rate Remains Well Below U.S. Average as Employers Add 25,300 Nonfarm Jobs in Past Year
NASHVILLE – Tennessee’s unemployment rate dipped in June, matching its lowest point of the year, according to data released by the Tennessee Department of Labor and Workforce Development (TDLWD).
The state’s seasonally adjusted unemployment rate was 3.5% in June, down one-tenth of a percentage point from the previous month and unchanged from June 2025.
Tennessee’s unemployment rate remains well below the national rate, which was 4.2% in June. The U.S. rate was 4.3% in May and 4.1% one year ago.
Over the past year, Tennessee employers added 25,300 nonfarm jobs. The largest gains were in the healthcare and social assistance sector, followed by the leisure and hospitality sector and the administrative, support, and waste services sector.
Over the month, total nonfarm employment increased by 2,500 jobs, with the biggest increases in private education and health services, durable goods manufacturing, and professional, scientific, and technical services.
TDLWD has compiled an analysis of the June 2026 unemployment data.
Veterans transitioning to civilian careers can access specialized employment and training services through Tennessee's American Job Centers.
TDLWD's Jobs for Veterans State Grants (JVSG) program provides individualized career services, training opportunities, and employment assistance to eligible veterans and covered persons with qualifying employment barriers.
Dedicated Disabled Veteran Outreach Program (DVOP) specialists and Local Veterans' Employment Representatives (LVERs) work to connect veterans with meaningful careers while helping employers recruit skilled veteran talent.
To learn more about veteran employment services and find your nearest American Job Center, visit Jobs4TN.gov.
Tennessee will release June 2026 county unemployment data Thursday, July 23, 2026, at 1:30 p.m. CDT.