May 2025 | Released June 24, 2025

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United States Employment Snapshot

• In May, among the 50 states and the District of Columbia unemployment fell in 13, rose in 14, and remained unchanged in 24.

• The highest unemployment rate was 5.9 percent in District of Columbia, and the lowest was 1.8 percent in South Dakota. Nationally, the unemployment rate remained unchanged in May.

• In May, payroll jobs rose in 37 states and fell in 11. The largest payroll job percent increase was 0.4 percent in Montana. The largest payroll job percent decline was 0.4 percent in Connecticut.

Tennessee Employment Snapshot

• In May, Tennessee lost 1,800 net payroll jobs and the unemployment rate remained unchanged at 3.5 percent. In the prior month, Tennessee added 7,400 net payroll jobs.

• Over the past 12 months, Tennessee added 16,900 net payroll jobs and the unemployment rate rose by 0.3 percentage points from 3.2 percent.

• Nationally, nonfarm payrolls rose by 139,000 in May, or 0.1 percent. Tennessee is tied for 39th in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• In May, Tennessee’s private sector lost 600 net private payroll jobs, and over the past 12 months it added 10,300 private payroll jobs. In the prior month, Tennessee added 7,800 net private payroll jobs.

• In May, employment in Tennessee rose by 10,106, and over the past 12 months it rose by 41,492.

• Tennessee’s labor force participation rate rose to 59.8 percent in May from 59.7 percent and ranks 40th in the nation. In the past 12 months, the labor force participation rate has risen by 0.2 percentage points.

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Tennessee Payroll Employment

• Tennessee lost 1,800 net payroll jobs, or -0.1 percent, on a seasonally adjusted basis during May. In the prior month, Tennessee added 7,400 jobs. Tennessee nonfarm payroll employment has increased in 9 of the past 12 months.

• Nationally, nonfarm payrolls rose by 139,000 in May, or 0.1 percent. Tennessee is tied for 39th in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• Tennessee lost 600 private sector jobs, or 0 percent. on a seasonally adjusted basis during May. In the prior month, Tennessee added 7,800 jobs. Tennessee private sector payroll employment has increased in 9 of the past 12 months.

• Nationally, private sector payroll jobs rose by 140,000 jobs in May, or 0.1 percent. Tennessee is tied for 38th in the nation for percentage gain in private sector payroll employment over the past 12 months.

• The best performing sectors on a seasonally adjusted basis during May were Education and Health Services (2,500) and Leisure and Hospitality (1,900).

• The poorest performing sectors during the month were Financial Activities (-1,600) and Professional and Business Services (-2,000).

• The best performing sectors during the last 12 months were Leisure and Hospitality (8,300) and Government (6,600).

• The poorest performing sectors during the last 12 months were Construction (-2,500) and Manufacturing (-3,100).

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 59.8 percent in May from 59.7 percent in the prior month.

• Tennessee ranks 40th 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 0.2 percentage points to 62.4 percent in May.