Tennessee unemployment increases, records 9,200 job losses in February

Tennessee’s February unemployment increased slightly over the previous month but remained below the national average. The Tennessee Department of Labor and Workforce Development (TDLWD) recorded an unemployment rate of 3.6% in the state in February, up from a 3.5% recorded in January. The rate is also up from the 3.5% unemployment rate in March 2025. However, the state still remained below the national unemployment rate of 4.4%, which is also up one-tenth of a percentage point from the previous month. Over hte past year, total nonfarm employment in the state decreased by 6,400 jobs with the largest declines in the trade, transportation, and utilities sector, followed by manufacturing and federal government. Between January and February 2026, nonfarm employment in the state decreased by 9,200 jobs with the biggest losses in private education and health services sector, followed by the trade, transportation, and utilities sector, and the leisure and hospitality sector. TDLWD has compiled a comprehensive analysis of the February 2026 unemployment data.