FRANKFORT, Ky. (June 18, 2026) — Kentucky’s seasonally adjusted preliminary May 2026 unemployment rate was 4.5%, according to the Kentucky Center for Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet.

The preliminary May 2026 jobless rate was up from the 4.3% reported in April but was down 0.2 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for May 2026 was 4.3%, which was unchanged from April and from the 4.3% recorded in May 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 2,097,040 in May 2026, a decrease of 556 individuals from April. The number of people employed in May was 2,003,656, a decline of 4,314 from April. The number of unemployed was 93,384, an increase of 3,758 from April.

“Kentucky’s unemployment rate increased to 4.5% in May,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “While the number of people in the labor force was essentially unchanged in May, fewer people reported being employed and more people indicated that they were without a job but looking for one.”

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 decreased by 3,100 jobs to 2,031,100 in May compared to April. Kentucky’s nonfarm employment was down 9,100 jobs or 0.4% compared to May 2025.

“Businesses also reported lower total nonfarm employment levels for May,” said Clark. “Employment did increase in some sectors such as government, professional and business services, and leisure and hospitality. However, these gains were more than offset by losses in Kentucky’s other major sectors including manufacturing, other services, and trade, transportation and utilities sectors.”

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

The government sector added 400 jobs from April to May. Jobs numbers were unchanged in federal government; up 100 jobs in state government; and up 300 jobs in local government. The total number of government jobs fell by 1,200 positions or 0.4% compared to May 2025.

Employment in Kentucky’s professional and business services sector rose by 300 jobs in May 2026. Employment was down 500 jobs in the professional, scientific and technical services subsector; down 100 jobs in management of companies; and up 900 jobs in administrative, support and waste management subsector. The sector had 900 fewer positions compared to May 2025.

Kentucky’s leisure and hospitality sector grew by 200 jobs from April to May. The arts, entertainment and recreation subsector was down 400 jobs, but the accommodations and food services subsector added 600 jobs. Employment in this sector was up 1,500 positions from one year ago.

Employment in the state’s mining and logging sector rose by 100 positions in May. This sector had 300 fewer jobs in May 2026 compared to May 2025.

The number of educational and health services sector jobs in Kentucky was unchanged from April to May. Employment was down 100 jobs in the educational services subsector, but these losses were offset by a gain of 100 jobs in the health care and social assistance subsector. Since last May, this sector has grown by 3,000 jobs or 0.9%.

Employment in Kentucky’s information services sector was unchanged in May. The industries in this sector include traditional publishing as well as software publishing; motion pictures and broadcasting; and telecommunications. The sector was down 500 jobs in May 2026 compared to one year ago.

The financial activities sector lost 600 jobs from April to May. Employment fell by 400 jobs in the finance and insurance subsector and by 200 jobs in the real estate, rental and leasing subsector. This sector had 400 fewer positions compared to May 2025.

Employment in the construction sector declined by 600 jobs in May compared to April. Construction was up 500 jobs or 0.5% from one year ago.

The other services sector lost 800 jobs from April to May and was up 100 jobs compared to one year ago. This sector includes repairs and maintenance, personal care services and religious organizations.

Kentucky’s manufacturing sector was down 800 jobs from April to May. All of these losses were in the durable goods manufacturing subsector. Employment in non-durable goods manufacturing was unchanged in May. Kentucky’s manufacturing employment was down by 6,700 positions compared to May 2025.

Kentucky’s trade, transportation and utilities sector decreased by 1,300 positions from April to May. Employment was down 1,100 jobs in the wholesale trade subsector; unchanged in retail trade; and down 200 positions in transportation, warehousing and utilities. The sector had 4,200 fewer jobs compared to a year ago.

“Most of the decline in Kentucky’s employment for May occurred among wholesalers,” said Clark. “However, the estimates suggest that employment in the wholesale subsector jumped in April but then came back down quickly in May. So, the decline in wholesale employment during May likely reflects monthly volatility rather than a change in the industry’s overall trend.”

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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