FRANKFORT, Ky. (Jan. 23, 2025) — Kentucky’s seasonally adjusted preliminary December 2024 unemployment rate was 5.2%, according to the Kentucky Center for Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet.

The preliminary December 2024 jobless rate was up 0.1 percentage points from November 2024 and up 0.9 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for December 2024 was 4.1%, which was down 0.1 percentage points from November 2024, 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 2,085,059 in December 2024, an increase of 5,038 individuals from November 2024. The number of people employed in December increased by 1,973 to 1,976,436 while the number unemployed increased by 3,065 to 108,623.

“Throughout the past year, both the number of people employed and the number of people in the labor force in Kentucky have increased. Since workers are entering the labor force faster than they are finding jobs, the state’s unemployment rate has also increased this year,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D.

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 2,051,900 in December 2024 compared to November 2024. Kentucky’s nonfarm employment was up 28,700 jobs or 1.4% compared to December 2023.

“Kentucky saw steady growth in employment over 2024, with the number of jobs increasing in 10 of the last 12 months,” said Clark. “Over the year, employment grew in eight of the 11 major sectors with most of the job gains occurring in the educational and health services sector and the construction sector. Employment fell in three sectors over the year. Most of these job losses occurred in the trade, transportation and utilities sector.”

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 six of Kentucky’s major nonfarm North American Industry Classification System (NAICS) job sectors in December 2024 and decreased for five.

Employment in the leisure and hospitality sector gained 2,400 positions in December. This sector reported 3,900 more jobs in December than one year ago. The accommodations and food services subsector was up by 1,800 positions from November to December. The arts, entertainment and recreation subsector increased by 600 jobs in December.

Kentucky’s manufacturing sector added 300 jobs from November 2024 to December 2024. Employment was up by 200 in the durable goods manufacturing subsector and up by 100 jobs in the non-durable goods manufacturing subsector. Kentucky’s manufacturing employment rose by 800 positions or 0.3% compared to December 2023.

The other services sector increased by 200 jobs from November to December. This sector had 300 more positions in December 2024 compared to December 2023. This sector includes repairs and maintenance, personal care services and religious organizations.

Employment in Kentucky’s information services sector rose by 200 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 dropped by 500 positions from one year ago.

In the government sector, employment was up 200 jobs from November 2024 to December 2024. Employment increased by 100 jobs each in federal government and local government, while state government employment was unchanged. The total number of government jobs rose by 2,500 positions or 0.8% compared to December 2023.

The number of jobs in the construction sector increased by 100 jobs from November 2024 to December 2024 and was up 4,300 positions or 4.8% from one year ago.

The state’s mining and logging sector decreased by 100 jobs in December. This sector had 400 more jobs in December 2024 compared to December 2023.

Employment in the financial activities sector fell by 200 jobs from November 2024 to December 2024. All of these job losses occurred in the finance and insurance subsector.  This sector had 400 fewer positions compared to December 2023.

The trade, transportation and utilities sector lost 600 positions from November to December and was down 1,300 jobs compared to a year ago. Among the subsectors, employment was up 300 jobs in wholesale trade; up 200 jobs in retail trade; and down 1,100 jobs in transportation, warehousing and utilities.

Employment in Kentucky’s professional and business services sector dropped by 600 jobs in December 2024. Among the subsectors, employment was down 300 jobs in professional, scientific and technical services; up 200 jobs in management of companies; and down 500 jobs in administrative, support and waste management. The sector had 2,200 more positions compared to December 2023.

The educational and health services sector lost 700 positions in December 2024. Employment in the health care and social assistance subsector fell by 600 jobs from November to December. The educational services subsector was down 100 jobs. Since last December, this sector has grown by 16,500 jobs or 5.4%.

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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