FRANKFORT, Ky. (Oct. 15, 2026) — Kentucky’s seasonally adjusted preliminary September 2026 unemployment rate was 4.7%, according to the Kentucky Center for Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet.

The preliminary September 2026 jobless rate was unchanged from August and up 0.2 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for September 2026 was 4.2%, which was up 0.1 percentage points from August and down from the 4.4% recorded in September 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 2,116,455 in September 2026, an increase of 6,948 individuals from August. The number of people employed in September was 2,016,954, an increase of 6,721 from August. The number of unemployed was 99,501, an increase of 227 from August.

“Kentucky saw significant gains in the number of people participating in the labor force during September,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “The state’s labor force has increased in each of the past four months. It’s also encouraging that workers are finding jobs at roughly the same rate that they are entering the labor force. As a result, the state’s unemployment rate has held steady at 4.7%.”

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 800 jobs to 2,031,700 in September compared to August. Kentucky’s nonfarm employment was down 400 jobs compared to September 2025.

“The household survey and the business survey seem to paint different pictures of Kentucky’s labor market,” said Clark. “The household survey suggests that workers are entering the labor market and finding jobs. This suggests that there is a healthy demand for workers. However, the business survey suggests that firms’ demand for workers has cooled, and they are not expanding their payrolls. The difference could result from how employment is counted in the two surveys. The household survey includes self-employed and agricultural workers in its employment counts, but the business survey does not cover these workers. While the two surveys can paint different pictures of the labor market on occasion, they tend to be highly correlated over longer periods.”

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

Kentucky’s leisure and hospitality sector grew by 2,000 jobs from August to September. The accommodation and food services subsector was up 1,500 jobs, while the arts, entertainment and recreation subsector was up 500 jobs. Employment in this sector rose by 4,500 positions from one year ago.

The other services sector gained 200 jobs from August to September and was up 1,000 jobs compared to one year ago. This sector includes repairs and maintenance, personal care services and religious organizations.

Employment in the state’s mining and logging sector increased by 200 jobs in September. The number of jobs in this sector was up 100 jobs compared to a year ago.

Employment in the government sector did not change from August to September. Employment was up 200 jobs in federal government; up 100 jobs in state government; and down 300 jobs in local government. The total number of government jobs fell by 2,600 positions or 0.8% compared to September 2025.

Employment in Kentucky’s information services sector decreased by 200 positions from August to September. The industries in this sector include traditional publishing as well as software publishing; motion pictures and broadcasting; and telecommunications. The sector was down 200 jobs in September 2026 compared to one year ago.

The financial activities sector lost 200 jobs from August to September. Employment was down 100 jobs each in the finance and insurance subsector and in the real estate, rental and leasing subsector. This sector had 500 fewer positions compared to September 2025.

Employment in Kentucky’s manufacturing sector fell by 300 positions from August to September. Employment was down 600 positions among durable goods manufacturers but increased by 300 positions among non-durable goods manufacturers. Kentucky’s manufacturing employment was down by 2,100 positions compared to September 2025.

Kentucky’s trade, transportation and utilities sector decreased by 500 positions from August to September. Employment was unchanged in the wholesale trade subsector; up 500 jobs in retail trade; and down 1,000 jobs in transportation, warehousing and utilities. The sector had 1,400 fewer jobs compared to a year ago.

Employment in the construction sector declined by 500 jobs in September compared to August. Construction employment was unchanged from one year ago.

The number of educational and health services sector jobs in Kentucky was down 600 positions in September. Employment was up 300 jobs in the health care and social assistance subsector but down 900 jobs in the educational services subsector. Since last September, this sector has grown by 4,100 jobs or 1.3%.

Kentucky’s professional and business services sector fell by 900 jobs in September 2026. Employment was down 400 jobs in the professional, scientific and technical services subsector; down 200 jobs in management of companies; and down 300 jobs in the administrative, support and waste management subsector. The sector had 3,300 fewer positions compared to September 2025.

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.

To learn more about Kentucky labor market information, visit http://kystats.ky.gov/KYLMI.