TENNESSEE – Tennessee’s unemployment rate remained unchanged in August at 3.6%, according to new data from the Tennessee Department of Labor and Workforce Development (TDLWD). The figure is seven-tenths of a percentage point below the national rate of 4.3%, continuing the state’s trend of outperforming the broader U.S. labor market.

The latest seasonally adjusted data shows no movement from July’s unemployment rate, which was also 3.6%. A year ago, in August 2024, the rate matched the same mark. Meanwhile, the national rate ticked up slightly from 4.2% in July to 4.3% in August.

Between July and August 2025, Tennessee added 9,500 non-farm jobs. The strongest gains were in transportation, warehousing, and utilities, followed by retail trade and construction. Over the past 12 months, employers across the state have created 34,400 jobs, with the largest annual growth seen in government, professional and business services, and leisure and hospitality.

Rutherford County Job Market Snapshot - While the statewide rate was steady, Rutherford County numbers have fluctuated in recent months. March 2025 reported a county unemployment rate of 2.6%, which dipped to 2.3% in April before inching up to 2.7% in May, 3.4% in June, and 3.7% in July.

City-specific figures from July showed Smyrna at 3.5% and both La Vergne and Murfreesboro at 3.8%. Because August’s statewide rate held firm, economists suggest local city and county numbers are unlikely to see dramatic changes when released later this month.

Looking back, Rutherford County had at least one dramatic swing in its job market in recent years. During the COVID-19 pandemic, unemployment skyrocketed to 16.4% in April 2020, only to decline steadily to pre-pandemic lows. By November 2021, the county had rebounded to a rate of 2.5%, highlighting both the volatility and resilience of the region’s workforce.

Workforce Development Month - September is recognized as Workforce Development Month, celebrating programs and professionals who help Tennesseans find career pathways and strengthen the state’s economy. The 33-member State Workforce Development Board advises the governor on workforce policy and training investments. The board meets quarterly, with meetings open to the public and livestreamed on YouTube.

Next Update

The TDLWD will release the next set of unemployment data—covering all 95 Tennessee counties—on Thursday, September 25, 2025, at 1:30 p.m. CDT.