FRANKFORT, Ky. (May 7, 2026) — Kentucky’s seasonally adjusted preliminary March 2026 unemployment rate was 4.2%, according to the Kentucky Center for Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet.

The preliminary March 2026 jobless rate did not change from February but was down 0.5 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for March 2026 was 4.3%, which was down from the 4.4% reported for February and up from the 4.2% recorded in March 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 2,103,495 in March 2026, a decrease of 5,171 individuals from February. The number of people employed in March was 2,015,492, a decline of 4,344 from February. The number of unemployed was 88,003, a decrease of 827 from February.

“Kentucky’s unemployment rate fell to 4.2% in February and remained at this level in March, but it was not because unemployed workers found jobs,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “Estimates indicate that roughly 16,000 workers have exited Kentucky’s labor force during the first three months of 2026. Fewer people are reporting that they have a job, but fewer people are also reporting that they are looking for work. These changes could indicate that unemployed workers see limited opportunities to find employment as the economy has slowed. This might cause them to pause their job searches and temporarily leave 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 2,000 jobs to 2,034,100 in March compared to February. Kentucky’s nonfarm employment was down 2,000 jobs or 0.1% compared to March 2025.

“While the household survey showed fewer people working in March, businesses reported higher levels of employment,” said Clark. “These gains were concentrated primarily in the trade, transportation and utilities sector and the construction sector. The manufacturing sector accounted for most of Kentucky’s losses in March.”

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

Kentucky’s trade, transportation and utilities sector increased by 1,300 positions from February to March. Employment was up 300 jobs in the wholesale trade subsector; up 800 jobs in retail trade; and up 200 positions in transportation, warehousing and utilities. The sector had 3,200 fewer jobs compared to a year ago.

Employment in the construction sector jumped by 1,100 jobs in March compared to February. Construction was up 700 jobs or 0.8% from one year ago.

The other services sector added 900 jobs from February to March and 800 jobs compared to one year ago. This sector includes repairs and maintenance, personal care services and religious organizations.

Kentucky’s leisure and hospitality sector grew by 600 jobs from February to March. The arts, entertainment and recreation subsector was up 200 jobs while the accommodations and food services subsector added 400 jobs. Employment in this sector was up 2,100 positions from one year ago.

In the government sector, employment rose by 400 jobs from February to March. Jobs numbers were down by 200 in federal government; unchanged in state government; and up 600 in local government. The total number of government jobs fell by 1,000 positions or 0.3% compared to March 2025.

Kentucky’s professional and business services sector increased by 300 jobs in March 2026. Among the subsectors, employment was down 500 jobs in professional, scientific and technical services; up 100 jobs in management of companies; and up 700 jobs in administrative, support and waste management. The sector had 1,200 more positions compared to March 2025.

Employment was unchanged in Kentucky’s information services sector. The industries in this sector include traditional publishing as well as software publishing; motion pictures and broadcasting; and telecommunications. The sector was down 700 jobs in March 2026 compared to one year ago.

Employment in the state’s mining and logging sector also did not change in March. This sector had 500 fewer jobs in March 2026 compared to March 2025.

The financial activities sector was down 300 jobs from February to March. Employment fell by 400 jobs in the finance and insurance subsector and was up 100 jobs in the real estate, rental and leasing subsector. This sector had 100 more positions compared to March 2025.

The educational and health services sector reported 700 fewer jobs in March 2026. Employment was down 600 jobs in the health care and social assistance subsector from February to March and down 100 positions in the educational services subsector. Since last March, this sector has grown by 2,800 jobs or 0.9%.

Kentucky’s manufacturing sector contracted by 1,600 jobs from February to March. All of these job losses were in durable goods manufacturing. Employment in the non-durable goods subsector was unchanged from February to March. Kentucky’s manufacturing employment was down by 4,300 positions compared to March 2025.

“Employment in Kentucky’s durable goods manufacturing continued to fall in March,” said Clark. “The subsector posted its largest monthly decline since 2023.”

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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