Tennessee Logs 5,117 Layoffs in 2026 as 55% of Businesses Stay Optimistic

1 articles · Updated · Tennessean · Jul 20

At least 5,117 Tennesseans have been laid off since the start of 2026, even as the state remains in what economists call a “low hire, low fire” labor market.
Tennessee’s unemployment rate is still 3.6%, but weak hiring means displaced workers may struggle to find new jobs; nonfarm employment has grown by just 8,000 since last May.
Manufacturing and transportation have taken the biggest layoff hits, while healthcare and hospitality account for much of the state’s limited job growth.
Economists said companies are holding back on hiring because of AI experimentation, high interest rates, shifting consumer demand and immigration-related labor constraints, though some executives may be overstating AI’s role.
A record 55% of Tennessee business owners surveyed still expressed a positive economic outlook, a gap researchers said reflects leaders treating current pressures as a transitional phase.