Tennessee – Tennessee’s unemployment rate saw a modest improvement last month, marking the first decline in nearly a year, according to newly released data from the Tennessee Department of Labor and Workforce Development (TDLWD).

In March, the state’s seasonally adjusted unemployment rate dropped to 3.6%, down one-tenth of a percentage point from February’s rate of 3.7%. Prior to this shift, the rate had remained unchanged at 3.7% for six consecutive months. A year ago, in March 2024, the unemployment rate stood at 3.1%.

Tennessee’s unemployment figure now sits below the national average, which was reported at 4.2% for March. For comparison, the U.S. unemployment rate was 4.1% in February and 3.9% in March 2024.

Over the past 12 months, Tennessee employers added approximately 8,700 nonfarm positions. The Government sector accounted for the most significant gains, followed by growth in the Leisure and Hospitality industry, and the Trade, Transportation, and Utilities sector.

However, the state experienced a slight month-over-month decline in employment. Between February and March, total nonfarm employment dipped by 1,300 jobs. The Financial Activities sector reported the most notable losses during that period. Smaller declines were also seen in the Education and Health Services sector, as well as the Manufacturing sector.

Despite the lower unemployment rate, many employers across the state continue to report difficulties in finding skilled and qualified workers, highlighting an ongoing need for workforce development and training programs.

The TDLWD continues to encourage job seekers to take advantage of resources offered through local American Job Centers, which provide employment assistance, job matching, and skills training opportunities.