By Katie Northcott, News Director
The Tennessee Department of Labor and Workforce reported that 84 out of Tennessee’s 95 counties had unemployment rates under 5% as of January 2026.
Coffee County reported a 3.6% unemployment rate, Bedford County reported 3.4%, Franklin County reported 3.8%, and Moore County reported 3.6%.
Find the full report here.
Find the Tennessee Department of Labor and Workforce’s press release with analysis of the report below.
Eighty-four of Tennessee’s 95 counties recorded unemployment rates below 5% in January, even as most counties saw an uptick in their rates over the previous month, according to data from the Tennessee Department of Labor and Workforce Development (TDLWD).
Unemployment rates in 90 counties increased from December to January. Rates decreased in three counties and remained the same in two counties.
Williamson County reported the state’s lowest unemployment rate at 2.7%, which was up one-tenth of a percentage point from its December rate. Cheatham and Wilson counties followed at 2.8.%. That was an increase of one-tenth of a percentage point for both counties.
Perry County had the state’s highest unemployment rate in January at 11.3%, up 6 percentage points from December.
Cocke County recorded the second-highest rate at 6.4%, an increase of 2.1 percentage points. Pickett County followed at 6%, up 1 percentage point from December.
Tennessee’s seasonally adjusted unemployment rate was 3.5% in January. That rate was down one-tenth of a percentage point from the previous month but is still eight-tenths of a percentage point below the national rate of 4.3%.
Unlike the statewide rate, county rates are not adjusted to account for seasonal impacts on employment.
Take a closer look at January’s county unemployment data in TDLWD’s Labor Force Estimates report.
April marks National Second Chance Month, a time to recognize the importance of supporting successful reentry and expanding opportunities for individuals returning to our communities.
The Tennessee Office of Reentry leads coordinated efforts across the state to connect justice-involved individuals with employment, education, housing, and other critical support services. By partnering with local organizations, employers, and state agencies, the Office helps reduce recidivism, strengthen families, and improve public safety. These ongoing efforts reflect Tennessee’s commitment to second chances and to building stronger, more resilient communities statewide.
Tennessee will release statewide unemployment data for February on April 16, 2026, at 1:30 p.m. CDT.
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