Knoxville's unemployment rate was 3.5% in August, up from 3.4% a year earlier, and 1,780 fewer residents had jobs. Knox County: 3.2%. Tennessee: 3.7%.
Knoxville’s unemployment rate was 3.5% in August, up from 3.4% in August 2025. The bigger change was in the number of residents with a job. It fell by 1,780 over the year, to 99,096.
The number of residents out of work and looking barely moved. It rose by 60, to 3,602.
Knox County’s rate was 3.2%, up from 3.1%. Tennessee’s was 3.7%, up from 3.5%.
The figures are the preliminary August estimates from the U.S. Bureau of Labor Statistics’ Local Area Unemployment Statistics program. They are not seasonally adjusted, so the fair comparison is with the same month a year earlier.
Knoxville against its neighbors
| Area | August 2026 | August 2025 |
|---|---|---|
| Sevier County | 2.9% | 2.8% |
| Blount County | 3.1% | 3.0% |
| Knox County | 3.2% | 3.1% |
| Knoxville | 3.5% | 3.4% |
| Anderson County | 3.5% | 3.3% |
| Tennessee | 3.7% | 3.5% |
| United States | 4.3% | 4.5% |
All rates are not seasonally adjusted. Sources: BLS series for Sevier County, Blount County, Knox County, Anderson County, Tennessee and the United States.
Knoxville’s rate was above Knox County’s and below the state and national rates. Every area in the group rose by 0.1 or 0.2 points over the year. The national rate went the other way, falling from 4.5% to 4.3%.
Anderson County, home to Clinton, about 13 miles away, rose the most, by 0.2 points. So did the state.
The numbers behind the rate
In Knoxville in August, according to the BLS:
- 102,698 people were in the labor force, down from 104,418 a year earlier.
- 99,096 people had jobs, down from 100,876.
- 3,602 people were unemployed, up from 3,542.
Across Knox County:
- 260,231 people were in the labor force, down from 264,632.
- 252,027 people had jobs, down from 256,554.
- 8,204 people were unemployed, up from 8,078.
That is about 4,500 fewer Knox County residents with a job than a year earlier, while the number looking for work rose by 126. Most of the change shows up as a smaller labor force, not as more people unemployed.
The labor force counts people who have a job or are looking for one. These are counts of residents, wherever they work. They are not counts of the jobs based in Knoxville. The labor force can shrink for many reasons, including retirements, people moving away, students and people who stop looking for work. The BLS figures do not say which.
The same pattern ran statewide. Tennessee had 3,355,781 residents with jobs in August, down from 3,407,051 a year earlier, according to the BLS state series.
The past year, month by month
Knoxville’s rate moved between 2.7% and 3.7% over the year. It was lowest in March and highest in June, when the school year ends and seasonal swings are usual.
| Month | Knoxville | Knox County |
|---|---|---|
| August 2025 | 3.4% | 3.1% |
| September 2025 | 3.3% | 3.0% |
| October 2025 | no data | no data |
| November 2025 | 3.2% | 3.1% |
| December 2025 | 2.8% | 2.7% |
| January 2026 | 3.0% | 2.9% |
| February 2026 | 3.3% | 3.1% |
| March 2026 | 2.7% | 2.6% |
| April 2026 | 2.9% | 2.7% |
| May 2026 | 2.8% | 2.5% |
| June 2026 | 3.7% | 3.3% |
| July 2026 | 3.4% | 3.1% |
| August 2026 | 3.5% | 3.2% |
The BLS published no local figures for October 2025 because of the 2025 lapse in federal appropriations, the agency notes on each series.
What it means for you
- If you are looking for work, the state’s job listings and American Job Center locations are on Jobs4TN.
- If you run a business, a labor force that is about 4,400 people smaller across the county than a year ago can mean fewer applicants, even with unemployment low.
- The August figures are preliminary. The BLS revises them with the next month’s release, and we will update the numbers here when it does.
More on living and working here: moving to Knoxville and Knoxville home prices.
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