Tennessee’s unemployment rate declined last month for the first time since May 2024, according to the newest data from the Tennessee Department of Labor and Workforce Development.
The state’s seasonally adjusted unemployment rate in March was 3.6%, down one-tenth of a percentage point over the previous month. The rate had been 3.7% for six months in a row. In March 2024, it was 3.1%.
Tennessee’s unemployment rate is six-tenths of a percentage point below the national rate of 4.2%. The U.S. rate was 4.1% in February and 3.9% one year ago.
Over the past year, Tennessee employers added 8,700 nonfarm jobs. The largest gains were in Government, followed by the Leisure and Hospitality sector and the Trade, Transportation, and Utilities sector.
Between February and March, total nonfarm employment decreased by 1,300 jobs. The largest declines were in the Financial Activities sector. The Education and Health Services sector and the Manufacturing sector accounted for the next-largest declines.
TDLWD has prepared a complete analysis of the state’s March 2025 unemployment data that is available here.
Despite a lower unemployment rate, employers across Tennessee continue to search for skilled and qualified workers to help their businesses grow.
Job seekers and Tennesseans considering a career change can find valuable labor market information to help guide their career decisions at jobs4TN.gov. There, they will find the state’s top industries and the average wages for workers in their area.
They also can find the American Job Center closest to them, where they can access free internet, attend workshops, find job placement assistance, receive no-cost job training, and get help navigating jobs4TN.gov.