Eighty-nine of Tennessee’s 95 counties recorded unemployment rates below 5% as of August 2026, reflecting a significant portion of the state experiencing relatively low unemployment levels. Additionally, two counties reported unemployment rates exactly at 5%, while four counties had rates above that threshold.
The data indicates that unemployment rates declined in 22 counties, suggesting improvements in job availability and economic conditions in those areas. Meanwhile, rates remained unchanged in 28 counties, signaling stability in those regions. However, it is noteworthy that unemployment rates increased in 45 counties, which may reflect challenges facing those local economies.
Sevier and Cheatham counties distinguished themselves with the lowest unemployment rates, both recorded at 2.9%. This low rate may point to strong local job markets or successful economic initiatives in those areas. In contrast, Tennessee’s statewide unemployment rate was reported at 3.4%, a positive sign for the overall economic health of the state.
Looking ahead, the state is scheduled to release September unemployment data on October 15. This upcoming release will provide further insights into the employment landscape in Tennessee and may help clarify trends observed in August. However, the posting did not specify an application deadline or include information regarding pay and benefits associated with employment opportunities.
As the state continues to monitor these rates, the data will be crucial for understanding economic conditions and guiding future policy decisions. The fluctuations in unemployment rates across counties highlight the varying economic situations within Tennessee.

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