December 2025 | Released January 27, 2026
Download the full PDF for Tennessee
Download the summary PDF for Tennessee
United States
Employment snapshot
In December, among the 50 states and the District of Columbia unemployment fell in 8, rose in 21, and remained unchanged in 22.
The highest unemployment rate was 6.7 percent in District of Columbia, and the lowest was 2.2 percent in Hawaii and South Dakota. Nationally, the unemployment rate fell by 0.1 percentage point to 4.4 percent.
In December, payroll jobs rose in 23 states and fell in 27. The largest payroll job percent increase was 0.4 percent in Delaware and Montana. The largest payroll job percent decline was 0.3 percent in Kansas and Nebraska.
Tennessee
Employment snapshot
In December, Tennessee lost 5,100 net payroll jobs and the unemployment rate remained unchanged at 3.6 percent. In the prior month, Tennessee added 4,100 net payroll jobs.
Over the past 12 months, Tennessee added 23,000 net payroll jobs and the unemployment rate fell by 0.1 percentage point from 3.7 percent.
Nationally, nonfarm payrolls rose by 50,000 in December, or 0 percent. Tennessee is tied for 21st in the nation for percentage gain in nonfarm payroll employment over the past 12 months.
In December, Tennessee’s private sector lost 5,700 net private payroll jobs, and over the past 12 months it added 18,700 private payroll jobs. In the prior month, Tennessee added 2,500 net private payroll jobs.
In December, employment in Tennessee rose by 9,605, and over the past 12 months it rose by 93,646.
Tennessee’s labor force participation rate rose to 60.4 percent in December from 60.3 percent and ranks 39th in the nation. In the past 12 months, the labor force participation rate has risen by 0.9 percentage points.
Tennessee
Payroll employment
Tennessee lost 5,100 net payroll jobs, or -0.1 percent, on a seasonally adjusted basis during December. In the prior month, Tennessee added 4,100 jobs. Tennessee nonfarm payroll employment has increased in 9 of the past 12 months.
Nationally, nonfarm payrolls rose by 50,000 in December, or 0 percent. Tennessee is tied for 21st in the nation for percentage gain in nonfarm payroll employment over the past 12 months.
Tennessee lost 5,700 private sector jobs, or -0.2 percent, on a seasonally adjusted basis during December. In the prior month, Tennessee added 2,500 jobs. Tennessee private sector payroll employment has increased in 9 of the past 12 months.
Nationally, private sector payroll jobs rose by 37,000 jobs in December, or 0 percent. Tennessee is tied for 22nd in the nation for percentage gain in private sector payroll employment over the past 12 months.
From November 2025 to December 2025:
- The best performing sectors were Private Education and Health Services (+1,100) and State and Local Government (+900).
- The worst performing sectors were Trade, Transportation, and Utilities (-3,100) and Leisure and Hospitality (-1,700).
From December 2024 to December 2025:
- The best performing sectors were Professional and Business Services (+9,200) and State and Local Government (+7,500).
- The worst performing sectors were Manufacturing (-3,700) and Federal Government (-3,200).
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 60.4 percent in December from 60.3 percent in the prior month.
Tennessee ranks 39th 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 62.4 percent in December.