Tennessee Produces 900 Jobs During Year-to-Year Comparison

TENNESSEE — The Tennessee Department of Labor and Workforce Development (TDLWD) released the state’s latest economic analysis on May 21, 2026, revealing a stable yet shifting labor market for April 2026. According to the report, produced by the Workforce Insights, Research and Reporting Engine Division (WIRED), Tennessee’s seasonally adjusted unemployment rate remained unchanged at 3.6% for the third consecutive month.

While the rate held steady from March to April, the data provides a nuanced look at the state's growth when compared to the same period last year.

The Year-to-Year Snapshot

April 2025 vs. April 2026 — The most striking takeaway from the WIRED report is the year-over-year resilience of Tennessee's nonfarm employment, despite a slight uptick in the jobless rate from the previous year.

Unemployment Rate: April 2025, 3.5 %; April 2026, 3.6 percent.

Total Nonfarm Jobs: April 2025, 3,380,800; April 2026, 3,381,700 — a total of 900 additional jobs.

Total Labor Force Participation: April 2025, 60.6 %; April 2026, 59.7 percent.

In April 2025, Tennessee enjoyed a near-historic low unemployment rate of 3.5%. One year later, the rate has edged up slightly to 3.6%. Despite this marginal increase, Tennessee continues to significantly outperform the national average, which climbed to 4.3% in April 2026.

Sector Winners and Losers

The net gain of 900 jobs over the past year was driven by strong performances in service-oriented sectors, which offset significant losses in trade and manufacturing.

Top Growth Sectors: Health Care & Social Assistance — Added 9,500 jobs over the year.

State Government: Increased by 8,500 positions.

Administrative & Support Services: Gained 6,400 jobs.

Sectors Facing Challenges: Trade, Transportation, and Utilities — Saw the largest decline, losing 5,700 jobs (driven primarily by a 4,200 job loss in retail trade).

Manufacturing: Decreased by 4,800 jobs, with the bulk of losses hitting the non-durable goods sub-sector.

Federal Government: Trimmed 4,400 positions from Tennessee payrolls since last April.

Monthly Performance and Economic Outlook

On a month-to-month basis, Tennessee added 1,200 jobs between March and April 2026. The construction industry led the monthly charge, adding 1,900 jobs as spring projects began across the state. Durable goods manufacturing followed closely with 1,100 new hires.

However, the report also highlighted a cooling labor force. The total number of people in Tennessee’s labor force has decreased by approximately 17,800 since April 2025, contributing to a drop in the labor force participation rate from 60.6% to 59.7%.

"While the unemployment rate remains low and stable, the shift in sector employment shows an economy in transition," the TDLWD noted in its analysis. "We are seeing a move toward service-heavy industries while traditional retail and manufacturing sectors face headwinds."