MURFREESBORO, Tenn. (WGNS News) - Tennessee’s unemployment rate has fallen to its lowest level in two years, while Rutherford County residents will have to wait another week to learn whether the local job market followed the same statewide trend.

According to new data from the Tennessee Department of Labor and Workforce Development (TDLWD), the state’s seasonally adjusted unemployment rate stood at 3.4% in July, down one-tenth of a percentage point from both June and July of last year.

The last time Tennessee reported an unemployment rate of 3.4% or lower was in July 2024.

Tennessee also continues to outperform the nation as a whole. The U.S. unemployment rate was 4.1% in July, seven-tenths of a percentage point higher than Tennessee’s rate.

County-level unemployment figures for July have not yet been released. TDLWD is scheduled to publish those numbers on August 27, 2026. Until then, the most recent local data available covers June.

Looking at the latest county-by-county figures, Rutherford County’s unemployment rate increased from 2.6% in May to 3.1% in June. Despite the monthly increase, the June rate remained below the 3.3% recorded in June 2025.

Recent employment patterns also show some similarities to the seasonal movement seen during the same period last year. If that pattern continues, Rutherford County’s July unemployment figures could remain relatively close to June levels. However, the official July numbers will not be known until the state releases them on August 27.

Within Rutherford County, Smyrna recorded the lowest unemployment rate among the county’s larger municipalities in June at 3%. That represented an increase from 2.5% in May but remained below the 3.2% rate recorded one year earlier.

La Vergne’s unemployment rate also increased, climbing from 2.5% in May to 3.1% in June.

Murfreesboro experienced a slightly larger monthly increase. The city’s unemployment rate rose six-tenths of a percentage point between May and June, reaching 3.3% by the end of June.

Despite the month-to-month increases locally, Tennessee employers continue to show year-over-year job growth.

Statewide, employers added 21,300 non-farm jobs during the past year. The largest employment gains were reported in the healthcare and social assistance sector, followed by administrative, support and waste services, and durable goods manufacturing.

The monthly employment picture was slightly weaker. Tennessee recorded a net decline of 400 non-farm jobs from June to July, with the largest reductions occurring in leisure and hospitality, retail trade, and non-durable goods manufacturing.

The combination of a 3.4% statewide unemployment rate and continued year-over-year job growth indicates Tennessee’s labor market remains relatively strong, even as individual industries and local communities experience normal month-to-month fluctuations.

For Rutherford County, the next clearer picture of the local labor market will arrive Thursday, August 27, when TDLWD releases July unemployment statistics for all 95 Tennessee counties and their municipalities.

• Tennessee Dept. of Labor and Workforce Development has compiled an analysis of the July 2026 unemployment data.