Tennessee Unemployment Rate Falls to Two-Year Low of 3.4%

NASHVILLE – Tennessee last month posted its lowest unemployment rate in two years, according to new data from the Tennessee Department of Labor and Workforce Development (TDLWD).

The state’s seasonally adjusted unemployment rate in July was 3.4%, down one-tenth of a percentage point from the previous month and from one year ago.

The last time Tennessee reported 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 4.1% last month.

Employers across the state added 21,300 nonfarm jobs to their payrolls over the past year. The largest gains were in the healthcare and social assistance sector, followed by the administrative, support, and waste services sector and the durable goods manufacturing sector.

Over the past month, nonfarm employment decreased by 400 jobs, with the biggest declines in leisure and hospitality, retail trade, and nondurable goods manufacturing.

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

Tennesseans who are 55 and older can find meaningful work through the Senior Community Service Employment Program.

SCSEP provides work-based training for seniors who are unemployed and in need of updating their skills.

Participants are placed in a paid community service position that matches their personal goals. They receive hands-on training while working an average of 20 hours a week. 

The program allows seniors to remain productive and independent by contributing their talent and services to their communities while earning a modest income. Visit the SCSEP webpage to learn more.

Tennessee will release the July 2026 unemployment data for all 95 counties on Thursday, August 27, 2026, at 1:30 p.m. CDT.