Tennessee Unemployment Rates Drop in 93 of 95 Counties

The Tennessee Department of Labor and Workforce Development released July 2026 data showing a broad decline in unemployment across the state. Rates decreased in 93 of Tennessee's 95 counties, with 89 of those counties reporting unemployment levels below 5 percent.

Cheatham, Sevier, Williamson, and Dickson counties recorded the lowest unemployment rates in the state, tying at 2.8 percent. Perry County reported the highest rate at 5.8 percent, though this figure represented a decrease from June. Weakley County was the only jurisdiction to see an increase, with its rate rising to 5.3 percent, while Obion County remained unchanged.

To further support workforce expansion, the department is promoting hiring incentives such as the federal Work Opportunity Tax Credit to assist employers in hiring individuals who face employment barriers. Statewide unemployment data for August is scheduled for release on September 17.