Tennessee continues to outperform the U.S. rate
(UCBJ) – Tennessee’s unemployment rate continues to track well below the national average, according to the latest data from the Tennessee Department of Labor and Workforce Development (TDLWD). In February, Tennessee’s seasonally adjusted unemployment rate was 3.6%, up slightly from the previous month and from one year ago, when the rate was 3.5%.
Despite the uptick, Tennessee continues to outperform the U.S. rate, which was 4.4% in February. The national rate is up one-tenth of a percentage point from January and two-tenths of a percentage point from a year ago.
Over the past year, total nonfarm employment in Tennessee decreased by 6,400 jobs. The largest declines were in the trade, transportation and utilities sector, followed by manufacturing and federal government.
Between January and February, total nonfarm employment in the state decreased by 9,200 jobs, with the biggest losses in the private education and health services sector, followed by the trade, transportation and utilities sector, and the leisure and hospitality sector.
TDLWD has compiled a comprehensive analysis of the February 2026 unemployment data.
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