FRANKFORT, Ky. (March 27, 2025) — Kentucky’s seasonally adjusted preliminary February 2025 unemployment rate was 5.3%, according to the Kentucky Center for Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet.

The preliminary February 2025 jobless rate was unchanged from January 2025 and up 0.6 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for February 2025 was 4.1%, which was up 0.1 percentage points from January 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 2,114,760 in February 2025, an increase of 5,210 individuals from January 2025. The number of people employed in February increased by 6,371 to 2,003,407 while the number unemployed decreased by 1,161 to 111,353.

“Growth in Kentucky’s labor force returned during the first two months of 2025 after pausing at the end of last year,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “The number of people employed in Kentucky also increased and grew at a slightly faster rate than the labor force.”

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 5,200 jobs to 2,044,800 in February 2025 compared to January 2025. Kentucky’s nonfarm employment was up 12,700 jobs or 0.6% compared to February 2024.

“The survey of businesses indicated that hiring picked back up in February as Kentucky’s employers reported a net increase of 5,200 jobs compared to January,” said Clark. “This increase completely offset the job losses reported in January.”

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

The number of positions in the construction sector jumped by 3,800 jobs from January 2025 to February 2025 and was up 2,900 positions or 3.1% from one year ago.

“With an increase of 3,800 jobs, Kentucky’s construction sector posted its largest monthly employment gain since at least 1990,” said Clark. “While this does represent a strong increase in construction employment, part of the increase reflects a rebound from a decline of 1,600 construction jobs in January. In addition, monthly job numbers, particularly for construction, can vary considerably from month-to-month.”

The educational and health services sector added 1,400 positions in February 2025. Employment in the health care and social assistance subsector rose by 1,100 jobs from January to February. The educational services subsector was up 300 jobs. Since last February, this sector has grown by 8,700 jobs or 2.8%.

Employment in Kentucky’s manufacturing sector increased by 1,200 jobs from January 2025 to February 2025. Employment was up by 700 jobs in the durable goods manufacturing subsector and 500 jobs in the non-durable goods manufacturing subsector. Kentucky’s manufacturing employment fell by 200 positions or 0.1% compared to February 2024.

In the government sector, employment was up 500 jobs from January 2025 to February 2025. Employment decreased by 100 jobs in federal government; increased by 300 jobs in state government; and increased by 300 jobs in local government. The total number of government jobs rose by 3,100 positions or 1% compared to February 2024.

The financial activities sector added 400 jobs from January 2025 to February 2025. The finance and insurance subsector gained 300 jobs and the real estate, rental and leasing subsector gained 100 jobs. This sector had 600 fewer positions compared to February 2024.

Employment in Kentucky’s information services sector increased by 100 positions from January to February. 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 dropped by 400 positions from one year ago.

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

The state’s mining and logging sector decreased by 100 jobs in February. This sector had 600 fewer jobs in February 2025 compared to February 2024.

The other services sector dropped by 300 jobs from January to February and was unchanged from February 2024 to February 2025. This sector includes repairs and maintenance, personal care services and religious organizations.

The trade, transportation and utilities sector lost 400 positions from January to February but was up 1,800 jobs compared to a year ago. Among the subsectors, employment was up 400 jobs in wholesale trade; down 100 positions in retail trade; and down 700 jobs in transportation, warehousing and utilities.

Employment in the leisure and hospitality sector declined 1,500 positions in February. This sector reported 1,900 fewer jobs in February than one year ago. The accommodations and food services subsector was down by 1,100 positions from January to February. The arts, entertainment and recreation subsector decreased by 400 jobs in February.

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.