FRANKFORT, Ky. (Aug. 14, 2025) — Kentucky’s seasonally adjusted preliminary July 2025 unemployment rate was 4.9%, according to the Kentucky Center for Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet.

The preliminary July 2025 jobless rate was unchanged from June 2025 and down 0.2 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for July 2025 was 4.2%, which was up 0.1 percentage points from June 2025, according to the U.S. Department of Labor.

Labor force statistics, including the unemployment rate, are based upon estimates from the Current Population Survey of households. The survey is designed to measure trends in the number of people working and includes jobs in agriculture and individuals who are self-employed.

Kentucky’s civilian labor force was 2,117,737 in July 2025, a decrease of 1,385 individuals from June 2025. The number of people employed in July decreased by 1,026 to 2,014,917 while the number unemployed decreased by 359 to 102,820.

“Estimates of both the number of people working and the number of people looking for work decreased slightly from June to July,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “However, these differences were not statistically significant and suggest there was little change in Kentucky’s labor market.”

In a separate federal survey of business establishments that excludes jobs in agriculture and people who are self-employed, Kentucky’s seasonally adjusted nonfarm employment increased by 1,200 jobs to 2,059,600 in July 2025 compared to June 2025. Kentucky’s nonfarm employment was up 21,700 jobs or 1.1% compared to July 2024.

Nonfarm data is provided by the Bureau of Labor Statistics’ Current Employment Statistics program. According to the survey, employment increased from June to July for six of Kentucky’s major nonfarm North American Industry Classification System (NAICS) job sectors in July 2025, decreased for four, and was unchanged for one.

Kentucky’s trade, transportation and utilities sector increased by 1,900 positions from June to July and rose 3,900 jobs compared to a year ago. Employment was up 400 jobs in the wholesale trade subsector; 900 jobs in retail trade; and 600 positions in transportation, warehousing and utilities.

The other services sector added 800 jobs from June to July and rose 1,700 jobs compared to one year ago. This sector includes repairs and maintenance, personal care services and religious organizations.

Employment in the construction sector was up by 700 jobs in July than in June. Construction employment jumped by 6,000 positions or 6.4% from one year ago.

Kentucky’s professional and business services sector increased by 400 jobs in July 2025. Among the subsectors, employment was down 700 jobs in professional, scientific and technical services; up 100 jobs in management of companies; and up 1,000 jobs in administrative, support and waste management. The sector had 300 fewer positions compared to July 2024.

The financial activities sector had 400 more jobs from June 2025 to July 2025. Employment was up by 300 jobs in the finance and insurance subsector and up by 100 jobs in the real estate, rental and leasing subsector. This sector had 1,200 more positions compared to July 2024.

Employment in Kentucky’s information services sector rose by 400 positions from June to July. The industries in this sector include traditional publishing as well as software publishing; motion pictures and broadcasting; and telecommunications. The number of jobs in this sector in July 2025 was up 500 jobs compared to one year ago.

Employment in the state’s mining and logging sector was unchanged from June to July. This sector had 700 fewer jobs in July 2025 compared to July 2024.

Kentucky’s leisure and hospitality sector fell by 500 jobs from June to July. The arts, entertainment and recreation subsector added 200 jobs, but these gains were offset by a loss of 700 jobs in the accommodations and food services subsector. Employment in this sector was down 700 positions from one year ago.

The educational and health services sector reported 700 fewer jobs in July 2025. Employment in the educational services subsector fell by 300 jobs, while the health care and social assistance subsector declined by 400 jobs. Since last July, this sector has grown by 6,000 jobs or 1.9%.

In the government sector, employment was down 800 jobs from June 2025 to July 2025. Among the subsectors, employment was unchanged in the federal government; down 200 jobs in state government; and down 600 jobs in local government. The total number of government jobs rose by 4,000 positions or 1.3% compared to July 2024.

Kentucky’s manufacturing sector declined 1,400 jobs from June 2025 to July 2025. Durable goods manufacturing saw employment fall by 600 jobs. Employment in nondurable goods manufacturing was down 800 jobs. Kentucky’s manufacturing employment was up by 100 positions compared to July 2024.

“Non-durable manufacturing posted strong employment gains earlier during the year,” said Clark. “However, declines in June and July erased most of these gains.”

Civilian labor force statistics include nonmilitary workers and unemployed Kentuckians who are actively seeking work. They do not include unemployed Kentuckians who have not looked for employment within the past four weeks.

Kentucky’s statewide unemployment rate and employment levels are seasonally adjusted. Employment statistics undergo sharp fluctuations due to seasonal events, such as weather changes, harvests, holidays, and school openings and closings. Seasonal adjustments eliminate these influences and make it easier to observe statistical trends. However, due to the small sample size, county unemployment rates are not seasonally adjusted.

Visit the Kentucky Center for Statistics website to learn more about Kentucky labor market information. 

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