Tennessee Unemployment Hits Historic Low of 3.1% in March

NASHVILLE — Tennessee's seasonally adjusted unemployment rate dropped to 3.1% in March, down from 3.6% in February and marking the state's lowest level since May 2023, according to the Tennessee Department of Labor and Workforce Development. The economy added 12,000 nonfarm jobs last month, with manufacturing and healthcare sectors leading the charge after earlier gains in health care and social assistance. This performance continues to beat the U.S. rate of 4.4% in February, underscoring Tennessee's edge in job creation.[1][2][3] The job growth builds on a mixed start to 2026, where January saw a dip to 3.5% with 7,200 new positions in private education, health services and professional sectors, before a slight February uptick to 3.6%. Over the past year through early 2026, nonfarm employment fluctuated, with 5,900 jobs added annually but a 6,400-job dip in some sectors like trade and manufacturing. Fox 17 first reported the March figures, highlighting manufacturing's resurgence after prior declines.[1][2] County-level data from February shows broad strength, with 79 of 95 counties below 5% unemployment. Williamson, Macon and Cheatham counties tied for the lowest at 3%, while Wilson, Rutherford, Knox, Dickson and Sumner followed at 3.1%. Pickett County led highs at 6.7%, with Perry at 6.6% after a sharp drop from January's 11.3%; Shelby County, home to Memphis, held at around 4.7%.[4][5][6] TDLWD Commissioner Jeff McGee noted the March gains signal sustained momentum, especially in urban hubs like Nashville and Chattanooga where healthcare expansions fuel hiring. As Tennessee eyes further declines, the state remains a beacon for job seekers in the Southeast, with rates well below historical peaks like 15.7% in April 2020.[3][7]