By. Alexis Hill, Intern
Tennessee’s unemployment rate declined in June, matching its lowest level of the year, according to the latest figures from the Tennessee Department of Labor and Workforce Development.
The state’s seasonally adjusted unemployment rate dropped to 3.5 percent in June, down one-tenth of a percentage point from May. The rate is also unchanged from June 2025.
Tennessee continues to outperform the national average. The U.S. unemployment rate stood at 4.2 percent in June, compared to 4.3 percent in May and 4.1 percent one year earlier.
The most recent county-level data available is from May. Coffee and Moore counties each reported unemployment rates of 3 percent, while Franklin County recorded a 3.2 percent unemployment rate. Coffee and Franklin counties also posted the largest year-over-year improvements among the local counties, with unemployment declining by 0.5 percentage points.
Employment growth also remained strong across the state. Over the past year, Tennessee employers added 25,300 nonfarm jobs, with the largest increases occurring in the healthcare and social assistance sector. Additional gains were seen in leisure and hospitality, as well as administrative, support and waste services.
From May to June, total nonfarm employment increased by 2,500 jobs. The biggest monthly gains came in private education and health services, durable goods manufacturing, and professional, scientific and technical services.
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