Tennessee’s unemployment rate held steady last month at 3.6%, seven-tenths of a percentage point below the national rate, according to data from the Tennessee Department of Labor and Workforce Development.
The state’s seasonally adjusted unemployment rate in August was unchanged from the previous month. The rate was also 3.6% in August 2024.
Tennessee’s unemployment rate continues to track well below the U.S. rate, which was 4.3% in August. The U.S. rate was 4.2% in July and in August 2024.
Between July and August 2025, total nonfarm employment across the state increased by 9,500 jobs. The largest increases were in the transportation, warehousing, and utilities sector, followed by the retail trade and construction sectors.
Over the past year, Tennessee employers added 34,400 jobs, with the biggest gains in government, the professional and business services sector, and leisure and hospitality.
TDLWD has compiled an analysis of the August 2025 unemployment data, which is available here.
September is Workforce Development Month, recognizing the invaluable role of workforce programs and professionals in driving economic growth.
In Tennessee, the 33-member State Workforce Development Board is responsible for advising the governor on workforce policy and investments in training programs. The board brings together employers, educators, labor representatives, and government leaders to strengthen Tennessee’s talent pipeline to meet employer needs.
The State Workforce Development board meets quarterly, and meetings are open to the public and livestreamed on YouTube.
Learn more here about the board’s purpose and how it’s working with stakeholders to increase the competitive position of Tennessee businesses.