Tennessee’s unemployment rate drops for second month in a row

NASHVILLE, Tenn. (WKRN) — Tennessee is a good place to get a job right now. The unemployment rate has fallen for the second month in a row.

But there are headwinds, too. Many counties also saw unemployment tick up. And, nationwide numbers are showing a slowdown.

Tennessee’s new unemployment rate is 3.2%. After an uptick at the start of 2024, unemployment is trending down for both February and March.

📧 Have breaking come to you: Subscribe to News 2 email alerts →

“Overall, I think Tennessee is still seeing a pretty remarkable unemployment rate across the state,” said Commissioner Deniece Thomas, who heads Labor & Workforce Development.

Overall the numbers look good, according to Thomas, specifically in the Nashville Metro, which has a 2.4% unemployment rate.

“When you look at the variety of industries. I mean, healthcare, IT, all the drivers in Middle Tennessee, it continues to uptick. And as we get closer to the summer and we see more tourism and more activity, we think all those industries will be reinforced,” said Thomas.

One especially bright spot in Middle Tennessee is Cheatham County, where unemployment is one of the lowest statewide at 2.3%.

“In Cheatham County, you look at the labor force participation, which has a direct impact on unemployment. So, as those folks who maybe weren’t in the labor market are returning to find jobs, it’s going to positively impact the unemployment rate there in that county,” said Thomas.

But, some counties are seeing unemployment rise, including Clay County which has a 4.6% unemployment rate—the state’s highest.

⏩ Read today’s top stories on wkrn.com

“The counties that are struggling a little bit with the growth, I think a lot of that has to be reckoned to just the change in activity. As workers are leaving one job and going to another, maybe going to an adjacent county, all those things, we have to dive deeper into the numbers to get it into an exact science. But as you well know, with the labor market, exact is pretty hard to get to,” said Thomas.

Nationwide numbers are showing an economic slowdown. Thomas said that does not concern her. She said the Volunteer State has always marched to the beat of its own drum when it comes to nationwide economic trends.

For the latest news, weather, sports, and streaming video, head to WKRN News 2.