Tennessee March unemployment down

Tennessee’s unemployment rate declined for the first time in nearly a year in March 2025. The Tennessee Department of Labor and Workforce Development (TDLWD) reported a 3.6% unemployment rate in March, down one-tenth of a percentage point from February. The rate had stayed at 3.7% for the previous six months. Tennessee’s unemployment rate is six-tenths of a percentage point below the national rate of 4.2%. The U.S. rate was 4.1% in February and 3.9% one year ago. Over the past year, Tennessee employers added 8,700 nonfarm jobs. The largest gains were in Government, followed by the Leisure and Hospitality sector and the Trade, Transportation, and Utilities sector. Between February and March, total nonfarm employment decreased by 1,300 jobs. The largest declines were in the Financial Activities sector. The Education and Health Services sector and the Manufacturing sector accounted for the next-largest declines. TDLWD has prepared a complete analysis of the state’s March 2025 unemployment data that is available here.