Tennessee · Economy & Workforce
Unemployment Rate in Tennessee
Share of the civilian labor force actively looking for work but not currently employed, averaged over the year.
3.5% in 2025
#17 of 50 · Middle tier (lower is better)
Tennessee is better than the 50-state median (4.0%). That's a gap of 0.4%.
View interactive chart & trend → See full 50-state ranking →
1976 – 2025 · Tennessee only · interactive chart with US median overlay →
About unemployment rate
What this measures: Share of the civilian labor force actively looking for work but not currently employed, averaged over the year.
Why it matters: The unemployment rate is the most widely-watched real-time read on a state's labor market and a strong predictor of state revenue.
Watch out: Excludes discouraged workers and those who left the labor force. The labor force participation rate fills in that gap.
Recent trend
| Year | Tennessee | US median |
|---|---|---|
| 2016 | 4.7% | 4.7% |
| 2017 | 3.7% | 4.2% |
| 2018 | 3.5% | 3.8% |
| 2019 | 3.3% | 3.5% |
| 2020 | 7.5% | 7.3% |
| 2021 | 4.4% | 4.8% |
| 2022 | 3.4% | 3.2% |
| 2023 | 3.3% | 3.2% |
| 2024 | 3.4% | 3.6% |
| 2025 | 3.5% | 4.0% |
Tennessee vs. neighboring states
Same metric (unemployment rate), latest year with full state coverage. Click any name for that state's full report.
| State | Unemployment Rate | National rank |
|---|---|---|
| Kentucky | 4.6% | #43 of 50 |
| Virginia | 3.3% | #13 of 50 |
| North Carolina | 3.8% | #23 of 50 |
| Georgia | 3.4% | #14 of 50 |
| Alabama | 2.9% | #5 of 50 |
| Mississippi | 3.8% | #22 of 50 |
How Tennessee compares (2025)
Top 5 best
| #1 | South Dakota | 205% |
| #2 | Hawaiʻi | 234% |
| #3 | North Dakota | 260% |
| #4 | Vermont | 262% |
| #5 | Alabama | 287% |
Bottom 5
| #46 | Michigan | 508% |
| #47 | Oregon | 515% |
| #48 | Nevada | 525% |
| #49 | New Jersey | 527% |
| #50 | California | 546% |
Source and methodology
Source: Bureau of Labor Statistics · Direction: lower is better · Unit: %
Download raw CSV (all 50 states, all years)