Tennessee Unemployment Rate Remains Below U.S. Average

State's jobless rate holds steady despite slight uptick in February 2026

Apr. 16, 2026 at 9:43pm

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An abstract illustration composed of overlapping triangles and rectangles in shades of blue, green, and yellow, visually representing economic data without any text or numbers.Tennessee's steady unemployment rate underscores the state's economic resilience compared to national trends.Today in Nashville

Tennessee's unemployment rate in February 2026 was 3.6%, up slightly from the previous month but still well below the national rate of 4.4%. While the state saw a decrease of 6,400 total nonfarm jobs over the past year, Tennessee continues to outperform the U.S. in employment metrics.

Why it matters

Tennessee's ability to maintain a lower unemployment rate compared to the national average is an important economic indicator for the state. It suggests the state's economy and job market are relatively strong, which can attract new businesses and residents to the area.

The details

According to data from the Tennessee Department of Labor and Workforce Development, the state's seasonally adjusted unemployment rate in February 2026 was 3.6%, up slightly from 3.5% a year earlier. This compares to a national unemployment rate of 4.4% in February 2026, up from 4.2% the prior year. Over the past 12 months, Tennessee saw a decrease of 6,400 total nonfarm jobs, with the largest declines in trade, transportation, utilities, manufacturing, and federal government.

  • Tennessee's unemployment rate was 3.6% in February 2026.
  • The national unemployment rate was 4.4% in February 2026.
  • Tennessee's unemployment rate was 3.5% in February 2025.

The players

Tennessee Department of Labor and Workforce Development

The state agency responsible for compiling and analyzing Tennessee's employment and unemployment data.

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What’s next

Tennessee will release the February 2026 unemployment data for each of the state's 95 counties on Thursday, April 23, 2026, at 1:30 p.m. CDT.

The takeaway

Tennessee's ability to maintain a lower unemployment rate compared to the national average is a positive sign for the state's economy. However, the slight uptick in the state's jobless rate and the overall decline in nonfarm employment over the past year suggest the job market may be facing some headwinds that will need to be monitored going forward.