NASHVILLE, TN – Tennessee’s unemployment rate saw its first dip in nearly a year, according to the latest figures released by the Tennessee Department of Labor and Workforce Development (TDLWD).

In March 2025, the overall state’s seasonally adjusted unemployment rate dropped to 3.6%, a slight but meaningful decrease from 3.7%, where it had remained unchanged for six consecutive months. A year earlier, the unemployment rate in Tennessee was slightly lower at 3.1%. County-by-county unemployment numbers will paint even a bigger picture for both residents and employers upon their release on April 24, 2025.

This past February, Rutherford County had a 2.7% jobless rate, while the municipalities within the county posted similarly strong employment numbers, all staying below 3%. Smyrna had the lowest unemployment rate at 2.7%, followed by Murfreesboro and LaVergne, both of which recorded a 2.9% jobless rate for February. Again, the numbers for the month of March will be ready on April 24 and WGNS will keep you informed.

Even with the modest drop, Tennessee continues to outperform the national average. The U.S. unemployment rate stood at 4.2% in March, making Tennessee’s rate six-tenths of a percentage point lower than the national figure.

Over the past 12 months, the state added 8,700 nonfarm jobs, with the Government sector leading the way in job creation, followed by Leisure and Hospitality and Trade, Transportation, and Utilities. However, month-to-month numbers from February to March showed a loss of 1,300 jobs, primarily in the Financial Activities sector. The Education and Health Services and Manufacturing sectors also experienced minor declines.

While the lower unemployment rate is a positive signal, the TDLWD notes that many Tennessee employers are still struggling to fill open positions with skilled workers. The state encourages job seekers and those considering a career change to visit jobs4TN.gov, where they can explore high-demand industries, salary data, and locate their nearest American Job Center for free resources and job assistance.