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US State economic profile
Tennessee - Economic Profile
Statistics, economic information and rankings for the Volunteer State
In 2026, the state of Tennessee has a population of 7,390,757, having grown an annualized 1.2% over the five years to 2026, which ranks it 10th out of all 50 US states by growth rate. Tennessee's gross state product (GSP) in 2026 reached $455.5b, with growth of 2.5% over the 5 years to 2026. Businesses in Tennessee employed a total of 3,571,319 people in 2026, with average annual employment growth over the past five years of 2.0%. The top three sectors by total employment are Real Estate & Rental & Leasing, Manufacturing, Healthcare & Social Assistance, while the unemployment rate across the state in 2026 was 4.1%.
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State economic profile
Tennessee Economic Overview
$455.5b
Gross state product
7,390,757
Population
589,092
Businesses
What is Tennessee's Gross Domestic Product (GDP)?
In 2026, Tennessee's GDP reached $455.5b, representing an increase of 2.5% from 2025. Tennessee's GDP has grown at an annualized rate of 2.2% over the five years to 2026. Moreover, Tennessee's trailing five-year GDP growth ranks it 15th out of all 50 US states.
State GDP, or Gross State Product, is a measurement of a state's output, or the sum of value added from all industries in the state. It is a common indicator used to track the health of a state's economy.
You can track trends in Tennessee's GDP, and compare them to the national average, using the chart below.
State economic profile
Tennessee Industry Trends
Learn about current trends affecting the most significant industries for Tennessee's state economy, down to the county level. IBISWorld offers state industry research reports on over 30,000 industries across all 50 states in the US, including 637 industries in Tennessee.
What are Tennessee's Largest Industries by Revenue?
The largest industries by revenue in Tennessee are Health & Medical Insurance, Drug, Cosmetic & Toiletry Wholesaling and Hospitals, which generated $63.9b, $43.7b and $30.4b in 2026.
| Industry | 2026 revenue | |
|---|---|---|
| 1. | Health & Medical Insurance | $63.9b |
| 2. | Drug, Cosmetic & Toiletry Wholesaling | $43.7b |
| 3. | Hospitals | $30.4b |
| 4. | Life Insurance & Annuities | $24.2b |
| 5. | Commercial Banking | $23.9b |
| 6. | New Car Dealers | $23.7b |
| 7. | Public Schools | $20.5b |
| 8. | Gasoline & Petroleum Bulk Stations | $19.1b |
| 9. | Private Equity, Hedge Funds & Investment Vehicles | $17.0b |
| 10. | Property, Casualty and Direct Insurance | $16.9b |
State economic profile
Top Companies in Tennessee
Learn about current trends affecting the top companies in Tennessee. IBISWorld offers benchmarking data and tools on over 5,000 companies in the US.
Top 10 Companies Headquartered in Tennessee by Employment
The largest companies by employment in Tennessee are Walmart, Vanderbilt University and Amazon.Com, which employed 46,695, 38,000 and 28,000 people in 2026.
| Company | 2026 employment | Share of employment | |
|---|---|---|---|
| 1. | Walmart | 46,695 | 1.3% |
| 2. | Vanderbilt University | 38,000 | 1.1% |
| 3. | Amazon.Com | 28,000 | 0.8% |
| 4. | Vanderbilt University Medical Center | 24,039 | 0.7% |
| 5. | Kroger | 18,373 | 0.5% |
| 6. | Hca Healthcare | 18,000 | 0.5% |
| 7. | Nissan Motor | 11,000 | 0.3% |
| 8. | United States Postal Service | 10,610 | 0.3% |
| 9. | Home Depot | 7,636 | 0.2% |
| 10. | Target | 7,325 | 0.2% |
State economic profile
Tennessee Sector Statistics
In Tennessee, certain sectors drive a higher share of state GDP and employ more workers than others. However, simply looking at raw numbers doesn't always tell the whole story. Factoring in the current year growth percentage, in addition to the annualized growth percentage over the past five years, will give you a deeper understanding of the economic situation.
What is Tennessee's GDP by Sector?
The Real Estate & Rental & Leasing, Manufacturing and Healthcare & Social Assistance sectors contributed the most to Tennessee's GDP in 2026, representing a combined 38.3% of state GDP.
GDP trends by sector are an important indicator of which sectors are contributing the most value-add to the state economy, in addition to how the state economy is evolving over time.
| Sector | GDP | Growth 2026 | Annualized growth 2021-26 |
|---|---|---|---|
| Real Estate & Rental & Leasing | 59,055,233,873 | 4.7% | 5.1% |
| Manufacturing | 56,495,411,138 | -0.7% | -0.8% |
| Healthcare & Social Assistance | 48,102,735,671 | 5.3% | 5.1% |
| Professional, Scientific & Technical Services | 38,056,873,074 | 7.4% | 7.7% |
| Retail Trade | 35,696,740,240 | 5.1% | 4.3% |
| Wholesale Trade | 25,094,274,782 | 0.3% | -0.0% |
| Information | 23,856,955,118 | 9.4% | 8.8% |
| Finance & Insurance | 22,934,002,088 | -0.5% | -1.7% |
| Administration, Business Support and Waste Management Services | 19,771,874,083 | 4.1% | 4.5% |
| Accommodation & Food Services | 19,231,315,561 | 6.4% | 6.7% |
| Transportation & Warehousing | 17,562,129,304 | -0.7% | -1.7% |
| Construction | 15,399,098,886 | 1.7% | 1.5% |
| Arts, Entertainment & Recreation | 13,768,388,719 | 13.1% | 13.6% |
| Management of Companies and Enterprises | 11,417,510,046 | 5.7% | 5.8% |
| Other Services (except Public Administration) | 9,311,545,460 | -0.6% | -0.4% |
| Educational Services | 4,837,768,657 | 3.3% | 4.0% |
| Utilities | 4,605,521,295 | 9.3% | 9.3% |
| Agriculture, Forestry, Fishing & Hunting | 1,548,444,305 | -0.6% | -2.7% |
| Mining | 987,592,840 | 0.2% | -0.4% |
What is Tennessee's Employment by Sector?
The Healthcare & Social Assistance, Retail Trade and Manufacturing sectors contributed the most to employment in Tennessee in 2026, representing a combined 36.7% of state employment.
Employment trends by sector are an important indicator of which sectors are growing or contracting most rapidly relative to the state economy as a whole.
| Sector | Employment | Growth 2026 | Annualized growth 2021-26 |
|---|---|---|---|
| Healthcare & Social Assistance | 490,210 | 1.9% | 2.1% |
| Retail Trade | 474,726 | 1.6% | 3.0% |
| Manufacturing | 346,489 | 0.4% | 1.3% |
| Accommodation & Food Services | 337,452 | 1.5% | 4.2% |
| Administration, Business Support and Waste Management Services | 337,143 | 1.1% | 2.2% |
| Transportation & Warehousing | 249,339 | 5.7% | 4.1% |
| Educational Services | 240,921 | 0.8% | 1.3% |
| Professional, Scientific & Technical Services | 211,331 | 2.2% | 2.6% |
| Construction | 196,698 | 2.2% | 3.4% |
| Finance & Insurance | 160,040 | 1.1% | 1.4% |
| Other Services (except Public Administration) | 155,483 | 1.3% | 3.1% |
| Wholesale Trade | 123,931 | 0.8% | 1.2% |
| Real Estate & Rental & Leasing | 95,041 | 1.4% | 2.7% |
| Arts, Entertainment & Recreation | 72,042 | 1.6% | 5.3% |
| Information | 67,036 | 2.2% | 3.3% |
| Utilities | 6,349 | 0.5% | -0.5% |
| Agriculture, Forestry, Fishing & Hunting | 3,672 | 0.1% | 0.1% |
| Mining | 3,416 | 1.7% | 2.6% |
State economic profile
Tennessee Employment Trends
3.6m
Employment
4.1%
Unemployment
What Employment Trends are Impacting Tennessee?
The state of Tennessee employs 3,571,319 people in 2026, which ranks it 17th out of all 50 US states. Employment in Tennessee has grown at an annualized rate of 2.6% over the five years to 2026, overperforming the national average of 1.7%. Major sectors by employment in Tennessee include Healthcare & Social Assistance, Retail Trade and Manufacturing, which employed 490,210, 474,726 and 346,489 people in 2026, respectively. Tennessee's unemployment rate is 4.1% in 2026, which ranks it 19th out of all 50 US states. Tennessee's unemployment rate has trended downwards at a rate of -1.8% over the five years to 2026, overperforming the US economy as a whole.
Employment trends indicate the degree of tightness or slack in labor markets, in addition to the overall strength of an economy. Faster employment growth typically indicates a strong and growing economy, while lower unemployment tends to imply tightness in labor markets.
You can track unemployment trends in Tennessee, and compare them to the US economy, using the chart below.
$157.6k
Per capita disposable income
What is Tennessee's Per Capita Disposable Income?
Per capita disposable income, also known as disposable personal income (DPI), is the amount of money that the average person in an economy has available for spending and saving after accounting for income taxes. Tennessee's DPI in 2026 was $157.6k, compared to the US average of $156.5k, which places it 20th out of all 50 US states.
Disposable income is regarded as a key economic indicator as trends in disposable income are indicative of the level of aggregate demand, the state of labor markets and the financial strength of households.
You can track trends in Tennessee's per capita disposable income, and compare it to the US average, using the chart below.
State economic profile
Tennessee Construction & Building Trends
$19,384.4tn
Nonresidential construction
$12.5tn
Residential construction
42,722
Building permits
What can construction trends tell you about a state’s economy?
In Tennessee, non-residential construction was $19,384.4tn in 2026, which ranks it 30th out of all 50 US states. Residential construction was $12.5tn in 2026, which places Tennessee 22nd out of all 50 US states. The number of building permits issued in Tennessee in 2026 was 42,722, representing a -5.9% annualized growth rate between 2021 and 2026.
Trends in the construction sector are important because it creates jobs, income and tax revenue for a state. In addition, construction sector activity impacts other sectors in its supply chain, including manufacturing, wholesaling, warehousing, transportation, and real estate, rental and leasing services. Therefore, construction trends are important indicators of the health of an economy.
You can track trends in the number of building permits issued in Tennessee, and compare it to trends in the number issued in the United States as a whole, using the chart below.
State economic profile
Tennessee Population Statistics
Which Counties in Tennessee have the Largest Populations?
The counties with the highest populations in Tennessee are Shelby County, Davidson County and Knox County, which had populations of 893,012, 720,252 and 520,096 people in 2026.
| Region | 2026 population | Annual growth 2021-26 | Share of population |
|---|---|---|---|
| Shelby | 893.0k | -0.6% | 12.1% |
| Davidson | 720.3k | 0.4% | 9.8% |
| Knox | 520.1k | 1.3% | 7.0% |
| Hamilton | 394.1k | 1.2% | 5.3% |
| Rutherford | 390.6k | 2.1% | 5.3% |
| Williamson | 278.9k | 1.8% | 3.8% |
| Montgomery | 258.0k | 2.4% | 3.5% |
| Sumner | 219.9k | 1.8% | 3.0% |
| Wilson | 180.0k | 3.2% | 2.4% |
| Sullivan | 165.8k | 0.8% | 2.2% |
| Blount | 147.0k | 1.3% | 2.0% |
| Washington | 144.5k | 1.4% | 1.9% |
| Maury | 119.9k | 2.7% | 1.6% |
| Bradley | 114.4k | 0.8% | 1.6% |
| Sevier | 100.4k | 0.3% | 1.4% |
| Madison | 99.7k | 0.2% | 1.4% |
| Putnam | 87.7k | 1.5% | 1.2% |
| Anderson | 83.6k | 1.4% | 1.1% |
| Robertson | 80.6k | 1.6% | 1.1% |
| Greene | 75.3k | 1.3% | 1.0% |
| Hamblen | 68.5k | 1.1% | 0.9% |
| Cumberland | 68.3k | 1.8% | 0.9% |
| Loudon | 66.6k | 3.2% | 0.9% |
| Coffee | 63.2k | 1.4% | 0.9% |
| Tipton | 63.1k | 0.6% | 0.8% |
State economic profile
Tennessee Demographics
In Tennessee, 33.7% of the population has a Bachelors or higher. The largest ethnic group in Tennessee is White, accounting for 70.6% of the state's population.
Education level in Tennessee
| Education level | Share (%) |
|---|---|
| Bachelors or higher | 33.7 |
| Other | 66.3 |
Race in Tennessee
| Race | Share (%) |
|---|---|
| White | 70.6 |
| Black | 15.7 |
| Hispanic | 8.8 |
| Other | 2.5 |
| Asian | 2.4 |
Tennessee State industry reports
IBISWorld State Industry Reports help you quickly understand how an industry performs at the state level compared with the national level, with accurate and unbiased industry information with a local focus. Use this collection to:
- Discover key local industry trends
- Identify threats and opportunities at the subnational level
- Inform your business strategies and planning
See our list of 637 Tennessee industry reports.
Other states to explore
Compare Tennessee’s economy with other states in the United States.
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