Counties With the Lowest Unemployment Rates: 2026 LAUS Rankings

County-level unemployment rates offer one of the most detailed views of local labor market health in the United States. In 2026, the Bureau of Labor Statistics’ Local Area Unemployment Statistics (LAUS) program shows that while the national unemployment rate stood at 4.1 percent (seasonally adjusted) in July, many counties—particularly in Oklahoma, Tennessee, Kentucky, and parts of Nevada—reported rates well below 3 percent. These low-rate counties are often rural or micropolitan areas with stable agricultural, energy, or tourism employment, but their figures also reflect small labor forces and unique local dynamics.

Key Numbers

• U.S. unemployment rate (SA): 4.1% in July 2026, down from 4.2% in June and 4.3% a year earlier.
• Lowest Oklahoma county rates: Dewey and Harmon counties at 2.6% in May 2026.
• Lowest Tennessee county rates: Cheatham, Sevier, Williamson, and Dickson counties at 2.8% in July 2026.
• Lowest Kentucky county rate: Woodford County at 3.3% in May 2026.
• Lowest Nevada micropolitan rates: Elko and Winnemucca at 3.4% in July 2026.
• Kentucky average unemployment: 5.2% in May 2026, 0.9 percentage points above the U.S. average.
• Oklahoma average unemployment: 4.3% in May 2026, matching the national average.
• Tennessee counties below 5%: 89 of 95 counties in July 2026.

Explanation

The unemployment rate measures the share of the labor force that is actively looking for work but not currently employed. At the county level, these rates are produced through the LAUS program, which combines data from the Current Population Survey, unemployment insurance claims, and other administrative records to estimate employment and unemployment for more than 7,000 geographic areas. County rates are typically not seasonally adjusted, meaning they can reflect normal seasonal patterns in agriculture, tourism, and construction.

In 2026, the lowest county unemployment rates are concentrated in states with diverse local economies. Oklahoma’s Dewey and Harmon counties each recorded a 2.6 percent rate in May, the lowest among the counties highlighted in recent state releases. Tennessee reported four counties at 2.8 percent in July, while Kentucky’s Woodford County led that state at 3.3 percent. Nevada’s Elko and Winnemucca micropolitan areas both posted 3.4 percent, the lowest in that state.

These low rates do not necessarily mean those counties have the strongest job markets. Many are small, rural areas where the labor force is limited, and a handful of major employers—such as a mine, a processing plant, or a distribution center—can keep unemployment very low. At the same time, low unemployment can signal labor shortages, an aging population, or out-migration of working-age residents, which can constrain future economic growth.

Definition

In the LAUS framework, the unemployment rate is the number of unemployed persons divided by the civilian labor force, expressed as a percentage. The labor force includes all people age 16 and older who are either working or actively seeking work. A person is considered unemployed if they do not have a job, have actively looked for work in the prior four weeks, and are currently available for work. County-level rates are published monthly by the Bureau of Labor Statistics in cooperation with state workforce agencies.

Ranking Table

The table below shows selected counties and local areas with the lowest unemployment rates reported in 2026 from available state-level LAUS releases. Because not all states publish a single national county ranking, this table highlights the lowest rates from Oklahoma, Tennessee, Kentucky, and Nevada.

Note: Rates are not seasonally adjusted and are not directly comparable across states due to differences in local economic structure and estimation models.

State Comparison

Among the states with available county-level data, Oklahoma and Tennessee stand out for having multiple counties below 3 percent. Oklahoma’s average unemployment rate across all tracked locations was 4.3 percent in May 2026, matching the national average, but its lowest counties were more than 1.5 percentage points below that. Tennessee’s July release showed 89 of 95 counties with rates under 5 percent, and four counties tied at 2.8 percent. Kentucky’s average was higher at 5.2 percent, yet Woodford County still recorded 3.3 percent. Nevada’s statewide rate was 5.0 percent (seasonally adjusted) in July, but its micropolitan areas of Elko and Winnemucca were much lower at 3.4 percent.

National Comparison

The national unemployment rate was 4.1 percent on a seasonally adjusted basis in July 2026, down from 4.2 percent in June and 4.3 percent in July 2025. The not seasonally adjusted U.S. rate was 4.4 percent. The lowest county rates highlighted here—2.6 to 3.4 percent—are between 0.7 and 1.8 percentage points below the national seasonally adjusted rate. This gap illustrates how local labor markets can diverge significantly from the national picture, especially in rural areas with specialized industries.

Year-over-Year Change

Many of the lowest-rate counties also saw improvement compared with a year earlier. In Nevada, the Elko micropolitan area’s rate fell from 4.0 percent in July 2025 to 3.4 percent in July 2026, a decline of 0.6 percentage points. Winnemucca’s rate dropped from 3.9 percent to 3.4 percent over the same period. In Tennessee, Roane County—though not among the very lowest—fell from 3.9 percent in July 2025 to 3.6 percent in July 2026. Kentucky and Oklahoma heat map data also indicate broad month-over-month improvement in many counties, though specific year-over-year figures for the lowest counties were not detailed in the available releases.

Methodology

The LAUS program produces monthly and annual estimates of labor force, employment, unemployment, and unemployment rates for states, counties, metropolitan areas, and other sub-state regions. The estimates are based on a combination of Current Population Survey data, state unemployment insurance claims, and establishment survey data. County-level estimates are typically not seasonally adjusted, which means they can show regular seasonal swings. The data are revised annually and are considered model-based estimates rather than direct counts from a complete census of the population.

Why It Matters

Low county unemployment rates are often cited as evidence of a strong local economy, but they can also signal structural challenges. When unemployment falls below about 3 percent, employers may struggle to fill open positions, which can slow business expansion and wage growth may accelerate. In rural counties, very low unemployment can reflect a shrinking labor force due to out-migration or an aging population, rather than robust job creation. Policymakers, economic developers, and businesses use these figures to identify labor availability, plan workforce training, and target economic development efforts.

Factors Behind the Trend

Several factors help explain why certain counties consistently report the lowest unemployment rates. In Oklahoma, Dewey and Harmon counties are small, rural areas where agriculture and energy-related employment provide stable jobs, and the labor force is relatively small. Tennessee’s low-rate counties include suburban Nashville areas like Cheatham and Williamson, which benefit from proximity to a major metropolitan economy, as well as Sevier County, a tourism hub anchored by the Great Smoky Mountains. Kentucky’s Woodford County is part of the Lexington-Fayette metropolitan area and has a mix of agriculture, manufacturing, and professional services. Nevada’s Elko and Winnemucca are mining and logistics centers in the northern part of the state, where gold mining and transportation employment keep unemployment low.

Limitations of the Data

County-level unemployment rates have important limitations. They are not seasonally adjusted, so month-to-month changes can reflect normal seasonal patterns rather than underlying economic shifts. The estimates are based on statistical models and are subject to revision. Small counties with limited sample sizes can show larger fluctuations that may not reflect real changes in the labor market. Additionally, the unemployment rate does not capture underemployment, discouraged workers who have stopped looking for work, or the quality of jobs. For these reasons, the lowest county unemployment rates should be interpreted alongside other indicators such as employment growth, labor force participation, and wage data.

Source & Data Date

The primary source for this article is the Bureau of Labor Statistics’ Local Area Unemployment Statistics (LAUS) program, as published through state labor department dashboards and data releases. Specific data points were drawn from the Nevada LAUS Dashboard (July 2026), the Tennessee Department of Labor and Workforce Development release published August 31, 2026, and ZipDataMaps heat maps for Kentucky and Oklahoma (May 2026). The national unemployment rate of 4.1 percent (seasonally adjusted) for July 2026 is from the Nevada LAUS Dashboard. County-level rates are not seasonally adjusted unless otherwise noted.