Tennessee’s statewide unemployment rate has remained steady at 3.7% for six consecutive months and continues to track below the national average, according to data from the Tennessee Department of Labor and Workforce Development.
The state’s seasonally adjusted unemployment rate in February was 3.7%, the same as it has been each month since September. In February 2024, the rate was 3.1%.
Tennessee’s unemployment rate continues to remain well below the national rate, which was 4.1% in February 2025, up one-tenth of a percentage point from the previous month and two-tenths of a percentage point from one year ago.
Over the past year, total nonfarm employment in Tennessee increased by 19,200 jobs. The largest gains were in Government, followed by the Leisure and Hospitality sector and the Education and Health Services sector.
Between January and February, total nonfarm employment increased by 9,100 jobs. The Education and Health Services sector accounted for the biggest increases, followed by the Trade, Transportation, and Utilities sector and the Leisure and Hospitality sector.
A complete analysis of the February 2025 unemployment data for Tennessee is available here
Whether a recent college graduate or a seasoned employee, Tennesseans looking for a new career can find help at an American Job Center (AJC), all at no cost. Find the AJC closest to you.
April is Second Chance Month, a nationwide effort to increase awareness about the challenges that justice-involved individuals face in securing meaningful employment. The Tennessee Department of Labor and Workforce Development’s Tennessee Office of Reentry (TOOR) is a statewide comprehensive source for reentry information, direction, and planning.
TOOR advances efforts to help justice-involved individuals overcome barriers to employment. TOOR also creates and coordinates opportunities to enable these individuals to receive a second chance at entering the state’s workforce.