Tennessee County Unemployment Rates Tick Up in January

Most counties saw a slight increase in jobless rates compared to the prior month.

Apr. 12, 2026 at 6:10pm

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An abstract composition of overlapping triangles and rectangles in shades of blue, representing the increase in jobless figures across Tennessee's counties.A geometric visual metaphor for the slight rise in county-level unemployment across Tennessee.Sequatchie Today

Unemployment rates rose slightly in most of Tennessee's 95 counties in January compared to December, according to new data from the state's Department of Labor and Workforce Development. While 84 counties still recorded jobless rates below 5%, the majority of counties saw an uptick in their unemployment figures over the previous month.

Why it matters

The slight increase in county-level unemployment rates, even as the state maintains relatively low jobless figures overall, could signal some economic softening in certain local markets across Tennessee. However, the state's economy remains relatively strong compared to national trends.

The details

In January, unemployment rates increased in 90 of Tennessee's 95 counties compared to the prior month. Rates decreased in 3 counties and remained flat in 2 others. Several counties in the Chattanooga region, including Bledsoe, Grundy, Hamilton, Marion, and Sequatchie, all saw their jobless figures tick up in January.

  • The data is from January 2026.
  • The previous unemployment data is from December 2025.

The players

Tennessee Department of Labor and Workforce Development

The state agency that tracks and reports unemployment data for Tennessee's counties.

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The takeaway

While Tennessee's overall economic picture remains positive, the slight rise in county-level unemployment rates in January could be an early sign of some regional softness in the state's labor market. However, the state's jobless figures are still quite low compared to national averages, suggesting the Tennessee economy remains relatively resilient.