Tennessee May 2026 unemployment remains steady

Tennessee’s May unemployment rate remained unchanged from 3.6% for the fourth consecutive month. Data from the Tennessee Department of Labor and Workforce Development (TDLWD) indicates the rate was also above the 3.5% rate recorded in May 2025. Tennessee’s unemployment rate remains below the national rate, which has stayed at 4.3% in both April and May 2026. Between April and May 2026, the state added 5,700 nonfarm jobs with the largest increases coming in the leisure and hospitality sector, followed by durable goods manufacturing, and the government sector third. TDLWD has compiled an analysis of the May 2026 unemployment data.