July 2026

Released August 21, 2026

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United States

Employment snapshot

• In July, among the 50 states and the District of Columbia unemployment fell in 29, rose in 4, and remained unchanged in 18.

• The highest unemployment rate was 5.9 percent in District of Columbia, and the lowest was 2 percent in South Dakota. Nationally, the unemployment rate fell by 0.1 percentage point to 4.1 percent.

• In July, payroll jobs rose in 27 states and fell in 24. The largest payroll job percent increase was 0.4 percent in Maryland. The largest payroll job percent decline was 0.6 percent in New Jersey.

Tennessee

Employment snapshot

• In July, Tennessee lost 400 net payroll jobs and the unemployment rate fell by 0.1 percentage point to 3.4 percent. In the prior month, Tennessee added 2,700 net payroll jobs.

• Over the past 12 months, Tennessee added 21,300 net payroll jobs and the unemployment rate fell by 0.1 percentage point from 3.5 percent.

• Nationally, nonfarm payrolls fell by 23,000 in July, or 0 percent. Tennessee is tied for 13th in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• In July, Tennessee’s private sector lost 1,700 net private payroll jobs, and over the past 12 months it added 19,900 private payroll jobs. In the prior month, Tennessee added 1,800 net private payroll jobs.

• In July, employment in Tennessee fell by 1,541, and over the past 12 months it fell by 42,234.

• Tennessee’s labor force participation rate fell to 59.3 percent in July from 59.4 percent and ranks 38th in the nation. In the past 12 months, the labor force participation rate has fallen by 1.3 percentage points.

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Tennessee

Payroll employment

• Tennessee lost 400 net payroll jobs, or 0 percent, on a seasonally adjusted basis during July. In the prior month, Tennessee added 2,700 jobs. Tennessee nonfarm payroll employment has increased in 8 of the past 12 months.

• Nationally, nonfarm payrolls fell by 23,000 in July, or 0 percent. Tennessee is tied for 13th in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• Tennessee lost 1,700 private sector jobs, or -0.1 percent, on a seasonally adjusted basis during July. In the prior month, Tennessee added 1,800 jobs. Tennessee private sector payroll employment has increased in 8 of the past 12 months.

• Nationally, private sector payroll jobs rose by 30,000 jobs in July, or 0 percent. Tennessee is tied for 16th in the nation for percentage gain in private sector payroll employment over the past 12 months.

From June 2026 to July 2026:

• The best performing sectors were State and Local Government (+1,300) and Trade, Transportation, and Utilities (+1,100).
• The worst performing sectors were Leisure and Hospitality (-3,400) and Financial Activities (-500).

From July 2025 to July 2026:

• The best performing sectors were Private Education and Health Services (+10,800) and Professional and Business Services (+7,800).
• The worst performing sectors were Financial Activities (-4,200) and Federal Government (-3,000).

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 fell to 59.3 percent in July from 59.4 percent in the prior month.

• Tennessee ranks 38th in the nation.

• The 10-year high for the labor force participation rate in Tennessee was 61.9 percent occurring in April 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 61.4 percent in July.