Tennessee’s unemployment rate remained unchanged in May.
The state’s jobless rate remained at 3.5 percent, the same as in April.
“Tennessee’s unemployment rate held steady in May, reflecting continued strength in the state’s economy,” the state Department of Labor & Workforce said on X.
Tennessee’s unemployment rate has decreased from January, when it stood at 3.7 percent. In March, it was 3.6 percent.
The May unemployment rate in America was 4.2 percent.
Between April and May, Tennessee lost 1,800 jobs. The industries that lost the most jobs were the Professional and Business Services (PBS) sector, the Financial Activities (FA) sector, and the Trade, Transportation, and Utilities (TTU) sector.
The PBS sector lost 2 percent of its jobs, while the FA sector and TTU sector lost 1.6 percent and 1.5 percent of its jobs, respectively.
Industries that saw the biggest increases in jobs were Education and Health (EH) Services (2.5 percent), Leisure and Hospitality (LH) (1.9 percent), and Other Services (OS) (0.4 percent).
Year over year, the Volunteer State gained 16,900 jobs. The most significant increases were in the EH, LH, and OS sectors.
Even with the job gains over the last year, the state’s jobless rate in May 2025 is higher than in May 2024. Last May, the unemployment rate was 3.2 percent.
Despite having a higher unemployment rate, Tennessee’s civilian workforce in May 2025 increased by 41,492 compared to last May.
Furthermore, the labor force participation rate increased by 0.2 percentage points to 59.8 percent over this time span.
For manufacturing workers, weekly earnings increased by $18.16 from April to May. These workers’ weekly wages increased by 0.14 cents per hour.
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Zachery Schmidt is the digital editor of The Star News Network. Email tips to Zachery at [email protected].
