Tennessee's Unemployment Rate Holds at 3.4% in August, Matching Its Lowest Level of 2026

Tennessee's seasonally adjusted unemployment rate held steady at 3.4% in August, unchanged from July and tied for the lowest level the state has reported so far this year, according to the Tennessee Department of Labor and Workforce Development. The figures were released on Sept. 17.

How it compares

The August rate is down 0.1 percentage point from August 2025 and remains below the national rate of 4.1%. Before July, the last time Tennessee reported a rate at or below 3.4% was July 2024.

Jobs added

Total nonfarm employment rose by 1,800 jobs from July to August, with leisure and hospitality, government and construction posting the largest monthly gains. Over the past year, Tennessee employers added 16,400 jobs. Health care and social assistance led the annual gains, followed by administrative, support and waste services, and leisure and hospitality.

What the numbers measure

The unemployment rate counts people who are actively looking for work, while payroll employment tracks the number of jobs reported by employers, so the two measures can move differently from month to month. The state's release did not yet include August figures for Davidson County or the Nashville area; the department planned to publish county-level August data on Sept. 24.

Sources: FOX 17 / WZTV, Tennessee Department of Labor and Workforce Development.