UPDATED: TENNESSEE (WGNS) - The Volunteer State started the new year with most counties still reporting low unemployment, even as jobless rates nudged upward in nearly every corner of the state. New data from the Tennessee Department of Labor and Workforce Development shows that 84 of the state’s 95 counties posted unemployment rates below 5 percent in January, a sign that the labor market remains steady despite seasonal shifts.
Williamson County reported the state’s lowest unemployment rate at 2.7%, which was up one-tenth of a percentage point from its December rate. Cheatham and Wilson counties followed, tied at 2.8%, with each county seeing an increase of one-tenth of a percentage point. Rutherford County, along with Macon, Knox, Dickson, and Sumner counties, each recorded an unemployment rate of 2.9% in January.
Rutherford County: While jobless rates were higher at the start of 2026 compared to the start of 2025, Rutherford County still remained among the top ten performing counties across the state. In January, Rutherford County posted an unemployment rate of 2.9%, reflecting a slight increase of 0.2 percentage points compared to January 2025, when the rate was 2.7%. Month-to-month, the rate rose from 2.7% in December to 2.9% in January, marking a 0.2 percentage point increase.
Local Cities: Similar trends were observed across municipalities in Rutherford County when comparing unemployment figures from the start of this year to the same period last year. La Vergne recorded the lowest jobless rate in January at 2.9%, which was unchanged from January 2025. Murfreesboro’s unemployment rate also remained steady year-over-year at 3%. Meanwhile, the Town of Smyrna experienced an increase, rising from 2.8% in January 2025 to 3% in January 2026.
State officials also reported increases in unemployment rates between December 2025 and January 2026. In Smyrna, the rate rose from 2.7% in December to 3% in January, a 0.3 percentage point increase. In Murfreesboro, unemployment increased by 0.2 percentage points, moving from 2.8% in December to 3% in January. La Vergne was the only city in Rutherford County to report no change, maintaining a steady rate of 2.9% from December through January.
Overall Look: Ninety counties saw their unemployment rates rise from December to January, while only three counties experienced a decrease and two held steady. The increases weren’t dramatic in most places, but they were widespread enough to mark a noticeable month‑to‑month change.
- Williamson County once again led the state with the lowest unemployment rate at 2.7 percent, up just a tenth of a point from December.
- Cheatham and Wilson counties shared second place at 2.8 percent, also ticking up by a tenth.
- A five‑county cluster—Macon, Knox, Dickson, Sumner, and Rutherford—landed in third place with rates of 2.9 percent.
- Robertson and Cannon counties followed closely behind at 3.0 percent.
On the opposite end of the spectrum, Perry County recorded a sharp jump, reaching 11.3 percent unemployment in January—an increase of six full percentage points from the previous month. Cocke County posted the second‑highest rate at 6.4 percent, up 2.1 points, while Pickett County came in at 6 percent after a one‑point increase.
Statewide, Tennessee’s seasonally adjusted unemployment rate held firm at 3.5 percent in January. That’s a slight improvement from December and still comfortably below the national rate of 4.3 percent, keeping Tennessee ahead of the curve as 2026 gets underway.
The month also marks the beginning of National Second Chance Month, a reminder of the work happening across the state to support individuals returning from incarceration. Tennessee’s Office of Reentry continues to partner with employers, community groups, and state agencies to connect justice‑involved residents with jobs, education, housing, and other supports. Those efforts aim to reduce recidivism and strengthen communities—an important backdrop to the state’s ongoing workforce story.
