Tennessee’s unemployment rate held steady in September at 3.6%, according to data from the Tennessee Department of Labor and Workforce Development (TDLWD). The release of September’s data was delayed because of the impact to the U.S. Bureau of Labor Statistics during the federal government shutdown.

The state’s seasonally adjusted unemployment rate was unchanged from the previous month. The U.S. rate was 4.4%, eight-tenths of a percentage point higher than Tennessee’s rate.

Between August and September, total nonfarm employment across the state increased by 3,400 jobs. The largest increases were in the accommodation and food services, durable goods manufacturing, and government sectors.

Over the past year, Tennessee employers added 35,800 nonfarm jobs, with the largest gains in government, leisure and hospitality, and professional and business services.

TDLWD has compiled an economic analysis of the September 2025 unemployment data.

Meanwhile, county data also released Thursday showed that nearly all Tennessee counties reported unemployment rates of less than 5% in September.

Only four of the state’s 95 counties recorded rates of 5% or higher, with the highest at 5.6%.

Unemployment rates decreased from August to September in 27 counties. Rates remained the same in 39 counties and increased in 29 counties.

Sevier and Williamson counties reported the lowest rates for September at 2.8%. Sevier County’s rate was up one-tenth of a percentage point from August, while Williamson’s rate was down one-tenth of a percentage point.

Cheatham County’s September rate was 2.9%, an increase of one-tenth of a percentage point from the previous month.

Perry County had Tennessee’s highest unemployment rate in September at 5.6%, an increase of half a percentage point from August.

Hardeman County reported the second-highest rate at 5.1%, which was unchanged from the previous month. Lauderdale and Johnson counties followed with rates of 5%.

Unlike the statewide rate, county rates are not adjusted to account for seasonal impacts on employment.

Read a breakdown of the September county unemployment data.

TDLWD will provide an update on the release schedule for October and November unemployment data as additional information becomes available.

Tennessee map shows the 10 counties with the highest and the 10 counties with the lowest unemployment rates in September. Top 10 highest are: Perry, 5.6%; Hardeman 5.1%; Lauderdale, 5%; Johnson, 5%; Meigs, 4.9%; Greene, 4.7%; Shelby, 4.6%; Benton, 4.6%;Pickett, 4.6%, Hancock, 4.6%. Top 10 lowest are: Sevier, 2,8%; Williamson, 2.8%; Cheatham, 2.9%; Dickson, 3%; Rutherford, 3%; Sumner, 3%; Wilson, 3%; Macon, 3%; Davidson, 3%; Blount, 3%.