FRANKFORT, Ky. (July 17, 2025) — Kentucky’s seasonally adjusted preliminary June 2025 unemployment rate was 4.9%, according to the Kentucky Center for Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet.

The preliminary June 2025 jobless rate was down 0.1 percentage points from May 2025 and down 0.1 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for June 2025 was 4.1%, which was down 0.1 percentage points from 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 2,119,009 in June 2025, a decrease of 702 individuals from May 2025. The number of people employed in June increased by 2,567 to 2,015,949 while the number unemployed decreased by 3,269 to 103,060.

“Estimates for the last three months suggest that the strong growth in Kentucky’s labor force may be cooling,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “While the labor force increased in April and May, these gains were smaller than we’ve typically seen overall for the past two years. Adding to this, the estimates for June indicate that there was a slight decrease in the number of people in Kentucky’s labor force. Despite this, Kentucky saw an up-tick in the number of people who reported having a job. This helped push the state’s unemployment rate down for June.”

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 1,500 jobs to 2,060,200 in June 2025 compared to May 2025. Kentucky’s nonfarm employment was up 22,200 jobs or 1.1% compared to June 2024.

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

Kentucky’s trade, transportation and utilities sector increased by 1,500 positions from May to June and rose 2,100 jobs compared to a year ago. Employment was up 300 jobs in the wholesale trade subsector; rose by 400 jobs in retail trade; and increased 800 positions in transportation, warehousing and utilities.

The educational and health services sector reported 1,500 more jobs in June 2025. Employment in the educational services subsector fell by 100 jobs, while the health care and social assistance subsector increased by 1,600 jobs. Since last June, this sector has grown by 7,700 jobs or 2.5%.

The other services sector added 600 jobs from May to June and was up 1,100 jobs compared to one year ago. This sector includes repairs and maintenance, personal care services and religious organizations.

The financial activities sector increased by 200 jobs from May 2025 to June 2025. The jobs gains were evenly split between the finance and insurance subsector and the real estate, rental and leasing subsector. This sector had 500 more positions compared to June 2024.

Employment in Kentucky’s information services sector was unchanged from May to June. 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 June 2025 was also the same as one year ago.

“While Kentucky’s information sector saw strong employment growth in 2022, these gains evaporated in 2023 and 2024,” said Clark. “However, from mid-2024 to mid-2025, there has been little change in employment in the information sector.”

Employment in the leisure and hospitality sector did not change from May to June. The arts, entertainment and recreation subsector added 300 jobs, but these gains were offset by a loss of 300 jobs in the accommodations and food services subsector. Employment in this sector was up 500 positions from one year ago.

Employment in the state’s mining and logging sector fell by 100 jobs in June. This sector had 700 fewer jobs in June 2025 compared to June 2024.

In the government sector, employment was down 200 jobs from May 2025 to June 2025. Among the subsectors, employment was down by 100 jobs in the federal government; down 100 jobs in the state government; and unchanged local government. The total number of government jobs rose by 5,100 positions or 1.6% compared to June 2024.

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

Kentucky’s manufacturing sector declined 800 jobs from May 2025 to June 2025. These losses were evenly distributed across the two major manufacturing subsectors with durable goods manufacturing and nondurable goods manufacturing both losing 400 jobs in June. Kentucky’s manufacturing employment was up by 900 positions or 0.3% compared to June 2024.

Employment in the construction sector was down by 900 jobs in June than in May. Construction employment was up 5,500 positions or 5.9% from one year ago.

“While employment in Kentucky’s construction industry has declined over the past three months, it is still well above levels seen in 2024,” said Clark.

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.