Hamilton County's jobless rate fell to 3.1% in September, from 3.4% a year earlier. But the labor force shrank by 2,839 people and fewer residents were working.

Hamilton County’s unemployment rate fell to 3.1% in September. That is down from 3.4% in September 2025 and from 3.5% in August, according to preliminary figures from the U.S. Bureau of Labor Statistics.

The lower rate does not mean more people were working than a year ago. Fewer were. The county’s labor force, the people working or looking for work, shrank over the year, and that pulled the rate down too.

The numbers

The BLS Local Area Unemployment Statistics for Hamilton County, not seasonally adjusted:

September 2025 August 2026 September 2026
Unemployment rate 3.4% 3.5% 3.1%
Unemployed 6,820 6,940 6,232
Employed 196,752 192,472 194,501
Labor force 203,572 199,412 200,733

Sources: BLS series for the county’s rate, unemployed, employed and labor force. September 2026 figures are preliminary and will be revised.

Over the year:

  • 588 fewer people were unemployed.
  • 2,251 fewer people were employed.
  • The labor force was 2,839 people smaller.

Over the month, the picture was better. Employment rose by 2,029 from August, and the number of unemployed fell by 708.

Bar chart of Hamilton County's unemployment rate by month: 3.4% in September 2025, 3.5% in November, 3.2% in December, 3.4% in January 2026, 3.6% in February, 3.1% in March, 3.0% in April and May, 3.6% in June, 3.4% in July, 3.5% in August and 3.1% in September 2026. No October 2025 figure was published.
Chart by Chattanooga Journal. Source: U.S. Bureau of Labor Statistics.
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The rate has stayed between 3% and 3.6% for the past year. There is no October 2025 figure: the BLS says that month’s data are unavailable because of the 2025 lapse in federal appropriations.

Chattanooga and Tennessee

The city of Chattanooga has its own series. Its rate was 3.3% in September, down from 3.6% a year earlier. The city’s labor force was 99,304, against 100,730 in September 2025.

Tennessee’s statewide rate, on the same not seasonally adjusted basis, was 3.3% in September, down from 3.5% a year earlier. Hamilton County’s rate was below the state’s in every month shown in the chart.

What it means for you

  • Unemployment in Hamilton County is low, at about one in 32 people in the labor force.
  • A falling rate alongside a smaller labor force can mean some people stopped looking for work, retired or moved away. The BLS figures do not say which.
  • September numbers are preliminary, and the BLS will revise them.

For more on living costs in the county, see our pages on home prices and property taxes.