Tennessee’s Job Market Holds Steady — What It Means for the Upper Cumberland

The latest numbers from the Tennessee Department of Labor and Workforce Development show the state’s unemployment rate held steady at 3.5% in May 2025, remaining well below the national average. While statewide employment has grown by nearly 17,000 non-farm jobs over the past year, the composition of that growth is shifting—and that’s something we’re watching closely at Workforce Connections.

🟢 Sectors on the Rise

The biggest job gains this past year have come in:

  • Leisure and Hospitality

  • Government

  • Health Care and Education

These increases are consistent with what we’re seeing in the Upper Cumberland, where healthcare demand continues to grow and our region benefits from a strong tourism and service economy—especially in counties like Putnam, Cumberland, and Overton.

🔴 Where Jobs Are Declining

At the same time, professional/business services and financial sectors saw modest declines. While these fields remain vital to our economy, the slight downturn suggests a cooling in white-collar hiring trends—potentially tied to national market uncertainty and ongoing automation.

👀 What We’re Watching

At Workforce Connections, we’re focused on helping both jobseekers and employers adapt to these shifts. Whether it’s through industry-informed training, customized employer services, or sector partnerships in education and healthcare, our role is to ensure the region keeps pace with where jobs are growing.

As employment trends evolve, agility is key—and that’s exactly what we’re here to support across the Upper Cumberland. Want to talk about what this means for your business or career? Let’s connect: ucwork.org

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