July 2025

Released August 19, 2025

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United States

Employment snapshot

• In July, among the 50 states and the District of Columbia unemployment fell in 6, rose in 15, and remained unchanged in 30.

• The highest unemployment rate was 6 percent in District of Columbia, and the lowest was 1.9 percent in South Dakota. Nationally, the unemployment rate rose by 0.1 percentage point to 4.2 percent.

• In July, payroll jobs rose in 31 states and fell in 20. The largest payroll job percent increase was 0.6 percent in Missouri. The largest payroll job percent decline was 0.5 percent in Wyoming.

Tennessee

Employment snapshot

• In July, Tennessee lost 900 net payroll jobs and the unemployment rate rose by 0.1 percentage point to 3.6 percent. In the prior month, Tennessee added 1,500 net payroll jobs.

• Over the past 12 months, Tennessee added 21,500 net payroll jobs and the unemployment rate rose by 0.2 percentage points from 3.4 percent.

• Nationally, nonfarm payrolls rose by 73,000 in July, or 0 percent. Tennessee is tied for 34th in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• In July, Tennessee’s private sector lost 800 net private payroll jobs, and over the past 12 months it added 11,600 private payroll jobs. In the prior month, Tennessee added 1,200 net private payroll jobs.

• In July, employment in Tennessee rose by 3,164, and over the past 12 months it rose by 49,645.

• Tennessee’s labor force participation rate rose to 59.9 percent in July from 59.8 percent and is tied for 39th in the nation. In the past 12 months, the labor force participation rate has risen by 0.3 percentage points.

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Tennessee

Payroll employment

• Tennessee lost 900 net payroll jobs, or 0 percent, on a seasonally adjusted basis during July. In the prior month, Tennessee added 1,500 jobs. Tennessee nonfarm payroll employment has increased in 10 of the past 12 months.

• Nationally, nonfarm payrolls rose by 73,000 in July, or 0 percent. Tennessee is tied for 34th in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• Tennessee lost 800 private sector jobs, or 0 percent, on a seasonally adjusted basis during July. In the prior month, Tennessee added 1,200 jobs. Tennessee private sector payroll employment has increased in 9 of the past 12 months.

• Nationally, private sector payroll jobs rose by 83,000 jobs in July, or 0.1 percent. Tennessee is tied for 39th in the nation for percentage gain in private sector payroll employment over the past 12 months.

From June 2025 to July 2025:

• The best performing sectors were Construction (+1,400) and Trade, Transportation, and Utilities (+1,000).
• The worst performing sectors were Private Education and Health Services (-2,700) and Leisure and Hospitality (-1,100).

From July 2024 to July 2025:

• The best performing sectors were State and Local Government (+10,200) and Professional and Business Services (+5,000).
• The worst performing sectors were Construction (-2,500) and Financial Activities (-2,400).

Tennessee

Labor force

The labor force participation rate is the percentage of the civilian noninstitutionalized population age 16 and older who are employed or actively looking for work.

• The labor force participation rate in Tennessee rose to 59.9 percent in July from 59.8 percent in the prior month.

• Tennessee is tied for 39th in the nation.

• The 10-year high for the labor force participation rate in Tennessee was 61.9 percent occurring in November 2019, and the 10-year low was 58.8 percent in April 2020.

• The national labor force participation rate fell by 0.1 percentage points to 62.2 percent in July.