Tennessee’s unemployment rate held steady in August at 3.4%, matching its lowest level of the year, according to data from the Tennessee Department of Labor and Workforce Development (TDLWD).
The state’s seasonally adjusted unemployment rate was unchanged from July and down one-tenth of a percentage point from a year ago. Before July, the last time Tennessee had reported an unemployment rate of 3.4% or lower was in July 2024. Tennessee’s unemployment rate remains well below the national rate, which was 4.1% in August. The U.S. rate was 4.1% in July and 4.3% one year ago.
Between July and August, total nonfarm employment across the state increased by 1,800 jobs. The largest increases were in the leisure and hospitality, government, and construction sectors.
Over the past year, Tennessee employers added 16,400 jobs, with the biggest gains in the healthcare and social assistance sector, followed by the administrative, support, and waste services sector, and the leisure and hospitality sector.
TDLWD has compiled an analysis of the August 2026 unemployment data [2]. In addition to the August report, a dashboard prepared by TDLWD’s Workforce Insights Research and Reporting Engine Division (WIRED) offers a deep dive into unemployment trends across Tennessee.
The interactive tool features a color-coded map, detailed tables, and county-level data dating to 1980 that help users compare current labor conditions with previous years.
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