Tennessee Unemployment Rate Falls To Two-Year Low Of 3.4%
(UCBJ) – According to a release from the Tennessee Department of Labor and Workforce Development, Tennessee’s unemployment rate fell to a two-year low in July. The state’s average unemployment rate was 3.4% in July, down slightly from June and July 2025.
Within the Upper Cumberland, Cannon and Macon counties recorded the region’s lowest unemployment rates at 2.6%, while Pickett County had the highest rate at 4.7%. White County’s rate was 3.9%, while Cumberland County reported a 3.8% rate.
Tennessee last reported an unemployment rate of 3.4% or lower in July 2024. The state’s rate remained below the U.S. unemployment rate of 4.1% in July.
In the Upper Cumberland, the labor market continued to strengthen, with the region’s combined unemployment rate falling to 3.3% in May. The UC labor force totaled 160,900 people, including 155,569 employed workers and 5,331 unemployed workers.
The largest gains were in:
- Healthcare
- Social assistance
- Administrative, support and waste services
- Durable goods manufacturing
Throughout the state, nonfarm employment decreased by 400 jobs, including declines in:
- Leisure and hospitality
- Retail trade
- Nondurable goods manufacturing
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