Unemployment in Tennessee held steady at 3.6% in March, and again, remains below the national unemployment rate, according to new data from the Department of Labor and Workforce Development.
The state’s seasonally adjusted unemployment rate was also 3.6% a month ago. A year ago, it was 3.5%.
The U.S. rate for March was 4.3%, seven-tenths of a percentage point above Tennessee’s rate. The U.S. rate was down one-tenth of a percentage point from a month ago and up one-tenth of a percentage point from a year ago.
Between February and March, total nonfarm employment across the state increased by 12,100 jobs. The largest increases were in the health care and social assistance sector, followed by the accommodation and food services sector and the administrative, support, and waste services sector.
Over the past year, Tennessee employers added 9,200 nonfarm jobs, with the largest gains in the health care and social assistance sector, state government, and the administrative, support, and waste services sector.
TDLWD has compiled an economic analysis of the March 2026 unemployment data.
Meanwhile, according to county data also released on Thursday, all but two of Tennessee’s 95 counties reported a drop in their unemployment rates in March. Only six counties recorded rates of 5% or greater.
Unlike the statewide rate, county rates are not seasonally adjusted. TDLWD has compiled an analysis of county unemployment data. That report is available here.