Tennessee Unemployment Rate Holds Steady in March

NASHVILLE - 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 (TDLWD).

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 theMarch 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.

Williamson County had the state's lowest unemployment rate for the month at 2.5%. The rate was down five-tenths of a percentage point from the previous month.

Four counties - Dickson, Knox, Cheatham, and Macon - had the next-lowest unemployment rates of 2.6%.

Pickett County reported Tennessee's highest unemployment rate in March at 5.7%, a decrease of 1 percentage point from the previous month.

Perry County had the second-highest rate at 5.4%, a drop of 1.2 percentage points. Maury and Meigs counties followed with rates of 5.1%.

Unlike the statewide rate, county rates are not seasonally adjusted.

TDLWD has compiled an analysis of county unemployment data.

Tennessee will release statewide unemployment data for April on Thursday, May 21, 2026, at 1:30 p.m. CDT.