Tennessee Starts 2026 With Lower Unemployment Rate

State's jobless rate declines slightly in January, outpacing national average

Apr. 3, 2026 at 12:19am

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An abstract illustration featuring overlapping triangles and rectangles in shades of blue, green, and yellow, conveying the positive economic trends in Tennessee without any text or numbers.Tennessee's steady economic recovery is reflected in its declining unemployment rate and expanding job market.Today in Nashville

Tennessee's seasonally adjusted unemployment rate for January 2026 was 3.5%, down one-tenth of a percentage point from December and matching the rate from a year earlier. The state continues to outperform the national unemployment rate, which was 4.3% in January. Over the past year, Tennessee employers added 5,900 nonfarm jobs, with the largest increases in healthcare, social assistance, state government, and the arts and entertainment sectors.

Why it matters

Tennessee's stable and relatively low unemployment rate is an important economic indicator for the state, signaling continued strength in the labor market despite broader national trends. The data provides valuable insights for employers, job seekers, and policymakers as they make decisions about business operations, workforce development, and economic policy.

The details

According to the Tennessee Department of Labor and Workforce Development (TDLWD), the state's seasonally adjusted unemployment rate for January 2026 was 3.5%, down slightly from 3.6% in December. Over the past year, Tennessee employers added 5,900 nonfarm jobs, with the largest increases in healthcare, social assistance, state government, and the arts and entertainment sectors. Over the month, total nonfarm employment increased by 7,200 jobs, with the biggest gains in private education, health services, professional and business services, and financial activities.

  • Tennessee's unemployment rate for January 2026 was 3.5%, down one-tenth of a percentage point from December.
  • The state's unemployment rate was also 3.5% a year ago in January 2025.
  • Throughout 2025, Tennessee's statewide unemployment rate remained stable, ranging from 3.5% to 3.7% each month.

The players

Tennessee Department of Labor and Workforce Development (TDLWD)

The state agency that compiles and analyzes Tennessee's unemployment data.

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What’s next

Tennessee will release the unemployment data for all 95 counties on Thursday, April 9, 2026, at 1:30 p.m. CDT.

The takeaway

Tennessee's relatively low and stable unemployment rate signals continued strength in the state's labor market, even as the national unemployment rate remains higher. This data provides important insights for employers, job seekers, and policymakers as they make decisions about business operations, workforce development, and economic policy.