Nashville, TN - Unemployment rates declined in every Tennessee county in August 2025, according to new data from the Tennessee Department of Labor and Workforce Development (TDLWD). Ninety counties reported unemployment rates of less than 5% in August. The other five counties had rates of 5% or greater, with the highest at 5.4%.
Sevier County ranked #1 and had the state’s lowest unemployment rate for the third month in a row. At 2.7%, it was six-tenths of a percentage point lower than in July.
Rutherford County tied for #4 with 3.0% unemployment. This county shares the 3.0% rate with Wilson, Cannon, Sumner, Dickson, Macon, and Bount.
Perry County reported the state’s highest unemployment rate for the month at 5.4%, a decrease of 1.5 percentage points from its July rate.
Three counties — Hardeman, Lauderdale, and Meigs — recorded rates of 5.1%.
Data released last week showed Tennessee’s seasonally adjusted unemployment rate in August was 3.6%. Unlike the statewide rate, county rates are not adjusted to account for seasonal impacts on employment, such as school breaks.
A breakdown of the August county unemployment data is available here.
American Job Centers (AJCs) offer free resources to meet individuals’ employment needs, including access to computers and assistance with resumes and interview skills.

