Across the state of Tennessee, unemployment numbers held steady during the first month of the new year. According to new data from the Tennessee Department of Labor and Workforce Development (TDLWD), the state’s seasonally adjusted jobless rate for January was 3.7%, the same as the revised rate for December.

December remains the most recent month for county-by-county numbers to be released, and January data won’t be available until March 13. City-by-city job rankings will also be released by the department of labor later this month. If numbers are similar to those recorded in December, Rutherford County may find itself back in the top ten rankings. For this to happen, Murfreesboro, Smyrna, and La Vergne will likely need to achieve rates of 3% or less.

In a year-to-year comparison, statewide unemployment rose from 3.2% in January 2024 to 3.7% in January 2025. Tennessee continued to outperform the U.S. unemployment rate in January, coming in three-tenths of a percentage point below the national rate of 4%. The U.S. rate decreased by one-tenth of a percentage point from the previous month, but increased by three-tenths of a percentage point from its January 2024 rate of 3.7%.

Over the past year, Tennessee employers added a total of 21,500 jobs, with the government sector accounting for the most significant gains, followed by the mining, logging, construction, leisure, and hospitality sectors.

Between December 2024 and January 2025, total nonfarm employment in Tennessee decreased by 10,100 jobs, with the largest losses occurring in the private education and health services, accommodation and food services, and transportation, warehousing, and utilities sectors.

Looking back at December 2024, Tennessee wrapped up the year with an unemployment rate of 3.6%, reflecting a slight increase from 3.4% the previous year. However, the state’s jobless numbers remain significantly lower than the national average of 4.1%. The Volunteer State experienced three consecutive months of record-low unemployment last year, achieving a rate of 3% in May, June, and July. In December alone, Tennessee added 500 nonfarm jobs, primarily in the health care and social assistance sector, which led overall job growth for the year, contributing to a total increase of 45,400 nonfarm jobs statewide in 2024.

The state of Tennessee will release county-by-county data for January 2025 on Thursday, March 13, 2025. In the meantime, you can see the unemployment breakdown for December 2024 HERE.