Tennessee Unemployment Rate Holds Steady at 3.6%

NASHVILLE - Tennessee's unemployment rate held steady in December at 3.6%, eight-tenths of a percentage point below the national rate, according to new data from the Tennessee Department of Labor and Workforce Development (TDLWD).

The state's seasonally adjusted unemployment rate was unchanged from the previous month. The rate was also 3.6% in November. A year ago, it was 3.7%.

The U.S. rate for December was 4.4%, down one-tenth of a percentage point from November. A year ago, the rate was 4.1%.

Over the past year, Tennessee employers added 23,000 nonfarm jobs. The largest increases were in the professional and business services sector, followed by other services and state government.

In the past month, total nonfarm employment across the state decreased by 5,100 jobs, with the largest declines in the trade, transportation, and utilities sector, the accommodation and food services sector, and the manufacturing sector.

Tennessee has compiled a comprehensive analysis of the December 2025 statewide unemployment data.

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Tennessee will release the unemployment data for all 95 counties on Thursday, January 29, 2026, at 1:30 p.m. CST.