FRANKFORT, Ky. (Dec. 11, 2025) — Kentucky’s seasonally adjusted September 2025 unemployment rate was 4.7%, according to the Kentucky Center for Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet.

The September 2025 jobless rate was unchanged from August 2025 and down 0.6 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for September 2025 was 4.4%, which was up from the 4.3% reported for August 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 2,114,917 in September 2025, a decrease of 20 individuals from August 2025. The number of people employed in September increased by 634 to 2,015,323 while the number unemployed decreased by 654 to 99,594.

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 600 jobs to 2,061,500 in September 2025 compared to August 2025. Kentucky’s nonfarm employment was up 19,800 jobs or 1% compared to September 2024.

“There was little change in Kentucky’s labor market from August to September,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “While the estimates for September differed slightly from those of August, these differences were not statistically different. While the September estimate of the number of people in the labor force was down by 20 individuals, this difference was also not statistically significant. This means that the labor force was essentially the same in September as it was in August. It is, however, noteworthy that the decrease in the number of people participating in the labor market that Kentucky experienced over the summer did not continue into September.”

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 six of Kentucky’s major nonfarm North American Industry Classification System (NAICS) job sectors in September 2025, decreased for four, and was unchanged for one.

Kentucky’s trade, transportation and utilities sector rose by 900 positions from August to September and was up 1,100 jobs compared to a year ago. Employment was up 600 jobs in the wholesale trade subsector; up 800 jobs in retail trade; and down 500 positions in transportation, warehousing and utilities.

The educational and health services sector reported 400 more jobs in September 2025. Employment in the educational services subsector did not change from August to September. The health care and social assistance subsector added 400 jobs. Since last September, this sector has grown by 4,900 jobs or 1.6%.

In the government sector, employment rose by 200 jobs from August 2025 to September 2025. Employment levels were unchanged in both federal government and state government but increased by 200 jobs in local government. The total number of government jobs rose by 2,800 positions or 0.9% compared to September 2024.

The other services sector gained 200 jobs from August to September and was up 1,600 jobs compared to one year ago. This sector includes repairs and maintenance, personal care services and religious organizations.

Kentucky’s professional and business services sector increased by 100 jobs in September 2025. Among the subsectors, employment was down 500 jobs in professional, scientific and technical services; up 100 jobs in management of companies; and up 500 jobs in administrative, support and waste management. The sector had 1,100 more positions compared to September 2024.

Employment in the construction sector rose by 100 jobs in September compared to August. Construction employment increased by 6,500 positions or 6.9% from one year ago.

The number of jobs in the state’s mining and logging sector was unchanged from August to September. This sector had 600 fewer jobs in September 2025 compared to September 2024.

Kentucky’s manufacturing sector declined 100 jobs from August 2025 to September 2025. Durable goods manufacturing employment increased by 200 jobs while nondurable goods manufacturing fell by 300 jobs. Kentucky’s manufacturing employment was down by 700 positions compared to September 2024.

“Manufacturing employment fell from June through September,” said Clark. “However, the decrease in September was small and likely reflects manufacturing firms simply trying to maintain their current employment levels.”

Employment in Kentucky’s information services sector fell 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 number of jobs in this sector in September 2025 was down 200 jobs compared to one year ago.

Kentucky’s leisure and hospitality sector lost 400 jobs from August to September. The arts, entertainment and recreation subsector was down 300 jobs while the accommodations and food services subsector fell by 100 jobs. Employment in this sector was up 2,000 positions from one year ago.

“Although the arts, entertainment and recreation subsector accounts for a small share of Kentucky’s employment, it has seen strong employment growth throughout the first nine months of 2025,” said Clark. “Employment in this subsector was up 9.6% in September compared to a year ago.”

Employment in the financial activities sector declined by 600 jobs from August 2025 to September 2025. Employment was down by 400 jobs in the finance and insurance subsector and down by 200 jobs in the real estate, rental and leasing subsector. This sector had 1,300 more positions compared to September 2024.

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.