FRANKFORT, Ky. (Jan. 29, 2026) — Kentucky’s seasonally adjusted preliminary December 2025 unemployment rate was 4.5%, according to the Kentucky Center for Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet.

The preliminary December 2025 jobless rate was down 0.2 percentage points from November 2025 and down 0.8 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for December 2025 was 4.4%, which was down from the 4.5% reported for November 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 2,117,499 in December 2025, an increase of 1,732 individuals from November 2025. The number of people employed in December was 2,022,172, an increase of 4,928 from November. The number of unemployed was 95,327, a decrease of 3,196 from November 2025.

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 300 jobs to 2,051,100 in December 2025 compared to November 2025. Kentucky’s nonfarm employment was up 6,300 jobs or 0.3% compared to December 2024.

“The household survey and the business survey provided mixed signals on Kentucky’s economy for December,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “The household survey shows an increase in the number of Kentuckians employed. There were also fewer people unemployed, which helped push the state’s unemployment rate down.

However, the business survey shows that firms did not add workers to their payrolls. Over the past few months, the total number of nonfarm jobs has declined somewhat. On occasion, the two surveys provide mixed signals in a given month. Generally, the trends are more consistent over several months.”

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

Kentucky’s professional and business services sector increased by 1,800 jobs in December 2025. Among the subsectors, employment was unchanged in professional, scientific and technical services; up 300 jobs in management of companies; and up 1,500 jobs in administrative, support and waste management. The sector had 500 more positions compared to December 2024.

Employment in the financial activities sector was up 700 jobs from November 2025 to December 2025. Employment levels were up by 500 jobs in the finance and insurance subsector and up 200 jobs in the real estate, rental and leasing subsector. This sector had 1,900 more positions compared to December 2024.

Employment in the construction sector rose by 300 jobs in December 2025 compared to November 2025. Construction employment increased by 6,300 positions or 6.7% from one year ago.

The educational and health services sector reported 200 more jobs in December 2025. Employment was up 400 jobs in the health care and social assistance subsector from November to December, but down 200 jobs in the educational services subsector. Since last December, this sector has grown by 3,000 jobs or 0.9%.

The other services sector was down 100 jobs from November to December but was up 1,800 jobs compared to one year ago. This sector includes repairs and maintenance, personal care services and religious organizations.

The number of jobs in the state’s mining and logging sector fell by 100 from November to December. This sector had 500 fewer jobs in December 2025 compared to December 2024.

Kentucky’s information services sector lost 100 positions from November to December. 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 December 2025 was down 200 jobs compared to one year ago.

In the government sector, employment fell by 100 jobs from November 2025 to December 2025. Employment levels were down 100 jobs in federal government; up 100 jobs in state government; and down 100 jobs in local government. The total number of government jobs rose by 700 positions or 0.2% compared to December 2024.

Kentucky’s leisure and hospitality sector employment contracted by 400 jobs from November to December. The arts, entertainment and recreation subsector was down 700 jobs while the accommodations and food services subsector gained 300 jobs. Employment in this sector was down 200 positions from one year ago.

Employment in Kentucky’s trade, transportation and utilities sector dropped by 1,200 positions from November to December. Employment was up 200 jobs in the wholesale trade subsector; down 800 jobs in retail trade; and down 600 positions in transportation, warehousing and utilities. Employment in this sector was down 4,600 jobs compared to a year ago.

“Kentucky’s trade, transportation and utilities sector has shown considerable weakness over the past few months,” said Clark. “This was first seen among firms in transportation and utilities beginning in July, but more recently wholesalers and retailers have also reduced employment.”

Employment in Kentucky’s manufacturing sector declined by 1,300 jobs from November 2025 to December 2025. Durable goods manufacturing employment decreased by 500 jobs while nondurable goods manufacturing fell by 800 jobs. Kentucky’s manufacturing employment was down by 2,400 positions compared to December 2024.

“After increasing somewhat in November, manufacturing employment fell in December and has now decreased six of the past seven months,” said Clark. “This appears to be driven mostly by losses in durable goods manufacturing. Non-durable goods manufacturing gave up employment gains from early in 2025. Over the past few months, employment in this subsector has fluctuated but has not been trending downward.”

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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