TN employers shed 9,200 jobs in February
Apr 17, 2026, 3:04 pm

NASHVILLE - Tennessee's labor market showed more signs of instability in February, with total nonfarm employment falling 9,200 jobs over the month and the seasonally adjusted unemployment rate ticking up to 3.6%, according to the Tennessee Economic Analysis for February 2026, published April 16 by the state Labor Department.

Over the year, total nonfarm employment has now declined 6,400 jobs — a 0.2% drop — with the largest losses in trade, transportation and utilities, manufacturing and federal government. The report also revised January's preliminary job figures down an additional 1,500 jobs.

The February figures follow a sobering federal benchmark revision released earlier this month showing Tennessee payrolls grew at effectively zero percent in both 2024 and 2025.

Combined with new federal data showing a spike in consumer prices, the compounding bad news is raising fresh concerns about stagflation — a dangerous economic condition where stagnant growth and job losses collide with rising costs, squeezing families from both directions at once.

"This is bad news for Tennesseans who are looking for work or a better job," said Brandon Puttbrese, spokesman for the Senate Democratic Caucus. "People are paying more for everything while good work is disappearing. That is the definition of stagflation and it's happening right under the noses of Gov. Bill Lee and the Republican Party who seem oblivious to the economic struggles our families are facing."