Nashville, Tennessee, January 23, 2026
Tennessee’s unemployment rate remained stable at 3.6% in December, reflecting resilience in the job market despite a loss of 5,100 nonfarm jobs. Over the past year, the state added 23,000 nonfarm jobs, showcasing strong economic growth driven by local entrepreneurs. The labor force participation increased, indicating more individuals are either employed or seeking work. Sectors such as professional services saw significant employment gains, underscoring the adaptability of Tennessee’s workforce.
Tennessee Unemployment Rate Remains Steady at 3.6% in December 2025
Nashville, Tennessee – Tennessee’s unemployment rate held steady at 3.6% in December 2025, maintaining the same rate since July 2025. This rate is slightly lower than the national unemployment rate of 4.4% for the same month. The stability in the unemployment figures showcases the strength and resilience of Tennessee’s workforce and highlights the effectiveness of local entrepreneurs in driving economic growth.
Despite a decrease of 5,100 jobs in the nonfarm sector during December, Tennessee has added 23,000 jobs over the past year, indicating a robust annual growth pattern. The largest increases in employment were seen in professional and business services, other services, and state government sectors. This focus on job creation can be linked to the entrepreneurial spirit thriving throughout the state, which promotes innovation and private investment.
Job Market Overview
In examining the job market in Tennessee, it is essential to recognize the sectors experiencing movement. The most significant declines were noted in areas such as the trade, transportation, and utilities sectors; accommodation and food services; and manufacturing. These challenges reflect both seasonal adjustments and broader economic influences impacting those industries.
Labor Force Participation Insights
Tennessee’s labor force participation increased by 0.3% from November to December 2025. This growth, from 3,416,098 to 3,426,084 individuals, reflects an encouraging trend amidst a fluctuating job market. Increased participation means that more individuals are either gaining employment or actively seeking work, which is vital for sustaining economic momentum.
Annual Employment Gains
The state’s ability to add 23,000 nonfarm jobs over the past 12 months is a positive indicator of Tennessee’s economic resiliency. It highlights sectors that not only survive but thrive, showcasing the importance of adaptive and resilient business models that cater to the demands of the local economy. Entrepreneurs are crucial players in this landscape, finding unique niches and market opportunities that foster job growth.
Conclusion
Overall, Tennessee’s steady unemployment rate of 3.6% signifies a strong economic foundation that benefits local businesses and communities alike. With ongoing efforts aimed at supporting entrepreneurs, encouraging private investment, and maintaining a low regulatory burden, the state positions itself well for continued success in the coming months. Community involvement and a focus on fostering innovation will be essential as Memphis and its surrounding areas remain committed to economic growth and resilience.
As we look ahead, staying engaged with local entrepreneurs and supporting small businesses is key to enriching Tennessee’s economic landscape. Together, we can help shape the future of Memphis and the surrounding communities, ensuring sustainable development that benefits all residents.
Frequently Asked Questions (FAQ)
What was Tennessee’s unemployment rate in December 2025?
Tennessee’s unemployment rate remained at 3.6% in December 2025, unchanged since July 2025.
How did Tennessee’s unemployment rate compare to the national rate in December 2025?
The national unemployment rate in December 2025 was 4.4%, while Tennessee’s rate was 3.6%, indicating a lower unemployment rate in the state compared to the national average.
What sectors experienced job declines in December 2025?
The trade, transportation, and utilities sector; accommodation and food services sector; and the manufacturing sector saw the largest declines in nonfarm employment in December 2025.
How did Tennessee’s labor force participation change in December 2025?
Tennessee’s labor force increased by 0.3% from November to December 2025, rising from 3,416,098 to 3,426,084 individuals.
What were the overall job gains in Tennessee over the past 12 months?
Over the past 12 months, Tennessee added 23,000 nonfarm jobs, with the largest increases in professional and business services, other services, and state government sectors.
| Feature | Details |
|---|---|
| Unemployment Rate | 3.6% (unchanged since July 2025) |
| National Unemployment Rate | 4.4% in December 2025 |
| Monthly Job Losses | 5,100 nonfarm jobs in December 2025 |
| Annual Job Gains | 23,000 nonfarm jobs over the past 12 months |
| Labor Force Participation | Increased by 0.3% from November to December 2025 |
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Author: STAFF HERE MEMPHIS WRITER
The MEMPHIS STAFF WRITER represents the experienced team at HEREMemphis.com, your go-to source for actionable local news and information in Memphis, Shelby County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Beale Street Music Festival, Elvis Week, and Memphis in May International Festival. Our coverage extends to key organizations like the Greater Memphis Chamber and the Memphis Convention & Visitors Bureau, plus leading businesses in logistics, healthcare, and music that power the local economy such as FedEx, St. Jude Children's Research Hospital, and AutoZone. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREKnoxville.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
