All but two of Tennessee’s 95 counties reported a drop in their unemployment rates in July, according to newly released data from the Tennessee Department of Labor and Workforce Development.

  Unemployment rates decreased from June to July in 93 counties. Obion was the only county where the rate remained the same in the month-to-month comparison, while Weakley was the only county to see an increase in unemployment.

  Eighty-nine counties recorded unemployment rates of less than 5 percent.

The remaining six counties had rates of 5 percent or greater, with the highest at 5.8 percent.

  Cheatham, Sevier, Williamson, and Dickson counties recorded the state’s lowest unemployment rates for July at 2.8 percent. Cheatham County’s rate was down two-tenths of a percentage point from the previous month, while the rates for Sevier, Williamson, and Dickson were down three-tenths of a percentage point.

  Perry County recorded the state’s highest unemployment rate for July at 5.8 percent, down three-tenths of a percentage point from June.

  Hancock County had the next-highest rate at 5.7 percent, which was down one-tenth of a percentage point. Weakley County followed with a rate of 5.3 percent, up four-tenths of a percentage point.

  TDLWD has compiled an analysis of the July 2026 county unemployment data.

Tennessee employers looking to grow their workforce can explore hiring incentives through TDLWD. These programs are designed to encourage workplace diversity, expand access to good jobs, and help individuals who face significant employment barriers enter or reenter the labor force.

  Through the Work Opportunity Tax Credit, eligible employers may receive federal tax credit incentives for hiring workers from targeted groups.

  Employers can learn more about available incentives, eligibility requirements and how to apply through TDLWD’s Apply for Hiring Incentives webpage.

  Tennessee will release statewide unemployment data for August on Sept. 17 at 1:30 p.m. CDT.