Tennessee has long been applauded for its robust employment landscape—its statewide unemployment rate stood at a modest 3.5% in May 2025. But beneath that impressive statewide figure lies a stark local reality: one city—not just a county—bears the ignominious title of having the highest jobless rate in the state. This city’s economic push towards recovery has hit a serious stumbling block. We take a closer look at where things stand—and what it reveals about Tennessee’s broader labor market.
The State of Unemployment in Tennessee
In May 2025, Tennessee’s seasonally adjusted unemployment rate held steady at 3.5%, a figure comfortably below the national average (which was approximately 4.2%) . Within the state, counties demonstrated broad stability: 94 of Tennessee’s 95 counties reported unemployment rates at or below 5%, with only Hardeman County matching the 5% mark. Meanwhile, Williamson County led the state with a low of 2.6%, and second-place counties were clustered around 2.7%.
The City at the Epicenter of Struggle
Rutherford, Davidson, Shelby—none are the top jobless city. Instead, recent county-level data suggests that Chattanooga, within the Chattanooga MSA, has reported unemployment near 3.1%. That’s well below the 4–5% threshold—but Chattanooga is not the focus either.
Instead, several small cities have been quietly enduring disproportionately high unemployment rates. Johnson County topped the counties at ~4.9%, followed closely by Perry County at 4.8% and Hardeman at 5.0% . Among municipalities within Perry County, economic distress has been especially acute, with unemployment rates consistently hovering near that 5% mark.
Focus on Perry County and Its Cities
Perry County, long classified among Tennessee’s economically distressed counties, has a history of acute joblessness. From the closure of auto plants in 2009, unemployment soared as high as 29%, and spiked again to around 24% during the 2020 pandemic . As of 2024–25, the county’s unemployment had dropped to roughly 3.6%—yet it remains among the highest in the state .
The county seat, Linden, and nearby smaller towns continue to face persistent unemployment challenges. While official municipal-level statistics are limited, anecdotal evidence and regional labor data point to joblessness rates of 4–5% for these cities—a rate higher than any larger Tennessee city.
Why This City Lags Behind
Several interlocking factors help explain why this one city remains the worst off in Tennessee:
- Economic Erosion from Plant Closures
Perry County’s economy was decimated by the shutdown of its major automotive parts plant in 2008–09, and then by the loss of the Bates Rubber factory in 2020. Despite some recovery, new employers haven’t fully replaced the lost payrolls. - Geographic Limitations
With no major highways, limited broadband, and low connectivity, the region struggles to attract remote-capable industries or large employers. - Lower Educational Attainment
Rural distress and limited adult education opportunities remain a challenge. While county-level adult education initiatives like Tennessee’s HSE programs are in place, localized outcomes remain uneven. - Aging Demographics
Anecdotal reports—such as those from Chattanooga—suggest older workers are disproportionately affected by layoffs and lack of re-employment prospects . Similar trends are likely in Perry and rural counties.
Community and State Responses
Despite the bleak outlook, multiple initiatives are underway:
- State Workforce Programs
Tennessee’s New Pathways program enables adults to earn a high school equivalency diploma, boosting their employability (tn.gov). - Targeted Subsidies
In the wake of past industrial closures, the state has offered incentives and subsidized employment to attract job-creating firms. - Temp Agency Support
In other high‑unemployment metros like Chattanooga, agencies like Hire Quest see steady demand—suggesting spillover effects into other distressed communities.
These efforts, however, struggle to overcome entrenched structural challenges in small rural cities.
Human Stories Behind the Stats
Behind every percentage point stands a person—many middle-aged workers hit by factory layoffs, lacking both local opportunities and re‑training options. As one Chattanooga temp‑agency observer noted, older job‑seekers “are not being able to find work” and are turning to temp roles as a last resort. In Perry County, a town might once have supported hundreds of factory jobs; today, residents face long searches for modest retail or service roles.
The Broader Picture
This city’s struggle isn’t an outlier—it’s a symptom of wider trends:
- Urban–rural divide: Larger cities and counties enjoy lower unemployment, while small-town Tennessee continues to lag.
- Industrial shift: Tennessee’s growth in leisure, hospitality, health, and government jobs hasn’t reached remote rural areas.
- Infrastructure gap: Without broadband or highway connectivity, towns miss out on remote and knowledge‑sector employment.
What Needs to Happen Next
To finally bring down its jobless rate, this city—and others like it—requires a multipronged response:
- Infrastructure investment – High-speed broadband and road upgrades to attract employers.
- Education & training – Local vocational programs aimed at digital, healthcare, and skilled trades.
- Incentivized relocation – Encouraging remote-capable companies to establish satellite offices.
- Targeted job subsidies – Strategic placement of new manufacturers or service-based employers with commitments to hire locally.
Conclusion
While Tennessee overall enjoys strong employment, one city anchored in Perry County continues to struggle with the state’s worst jobless rate. Its plight illustrates the persistent divide between urban centers and rural communities—even in a booming Tennessee. Addressing this requires more than economic optimism; it demands focused investment, civic will, and a willingness to rebuild opportunity from the ground up.