Eighty-nine of Tennessee’s 95 counties recorded unemployment below 5% in August, but the latest county report also shows that rates rose in nearly half the state. The Tennessee Department of Labor and Workforce Development said Thursday that 45 counties posted increases from July, while 22 declined and 28 were unchanged.
The state’s release put the statewide spread at 2.9% to 5.5%. Sevier and Cheatham counties had the lowest rates, at 2.9%. Macon, Dickson, Williamson, Wilson and Robertson followed at 3%. Hancock and Perry counties were highest at 5.5%, with Pickett at 5.2% and Hardeman at 5.1%. Shelby and Meigs were exactly 5%.
Those local figures are not seasonally adjusted, which makes month-to-month comparisons sensitive to recurring hiring patterns in tourism, schools, agriculture and other industries. Tennessee’s statewide rate, by contrast, is adjusted for those patterns. It held at 3.4% in August, according to the state’s detailed estimates. The distinction means a county’s August movement should not automatically be read as a change in its underlying economic direction, particularly when the shift is only a tenth or two of a percentage point.
Federal data provide the broader benchmark. The U.S. unemployment rate was 4.1% in August, and Tennessee’s 3.4% rate was statistically below it, the Bureau of Labor Statistics reported in its state summary. Nationally, unemployment rates were lower in eight states and the District of Columbia and stable in 42 states. Tennessee was among the states without a statistically significant monthly change.
The underlying totals also show a relatively steady market rather than rapid expansion. Tennessee’s civilian labor force was about 3.486 million in August, with roughly 3.366 million employed and 119,600 unemployed, according to the BLS state table. Nonfarm payroll employment was estimated at 3.384 million jobs, up about 1,800 from July and 0.5% from a year earlier. Education and health services and leisure and hospitality showed stronger year-over-year growth, while financial activities and information were lower.
For state officials and local development agencies, the county map helps identify where the labor market remains tight and where job seekers may face greater difficulty. The six counties at 5% or above are geographically dispersed, so the numbers do not point to a single regional shock. At the same time, the fact that 45 counties moved higher cautions against treating the below-5% count as a uniform improvement. Local rates can also change when people enter or leave the labor force, not only when employers add or eliminate positions.
The next statewide report, covering September, is scheduled for Oct. 15. County-level data will follow later, offering a clearer test of whether August’s increases were temporary seasonal shifts or the start of broader softening. Both sets of figures remain preliminary and may be revised.
