FRANKFORT, Ky. (April 23, 2026) — Kentucky’s seasonally adjusted February 2026 unemployment rate was 4.2%, according to the Kentucky Center for Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet.

The February 2026 jobless rate was down 0.1 percentage points from January and down 0.6 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for February 2026 was 4.4%, which was up from the 4.3% reported for January and up from the 4.2% recorded in February 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 2,108,665 in February 2026, a decrease of 5,874 individuals from January. The number of people employed in February was 2,019,836, a decline of 4,459 from January. The number of unemployed was 88,829, a decrease of 1,415 from January.

“While the state’s unemployment rate fell over the past two months, these recent declines appear to reflect workers leaving the labor force rather than finding jobs,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “The number of people in Kentucky’s labor force declined by a total of 11,326 workers in January and February. There were both fewer people searching for work and fewer people employed.”

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 1,000 jobs to 2,032,000 in February compared to January. Kentucky’s nonfarm employment was down 2,500 jobs or 0.1% compared to February 2025.

“After two months of growth, total nonfarm employment declined slightly in February,” said Clark. “Employment grew in the education and health services, leisure and hospitality, and government sectors. However, these gains were offset by losses, most of which occurred in the manufacturing, construction, and trade, transportation and utilities sectors.”

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

The educational and health services sector reported 1,300 more jobs in February 2026. Employment was up 1,100 jobs in the health care and social assistance subsector from January to February and up 200 positions in the educational services subsector. Since last February, this sector has grown by 4,100 jobs or 1.3%.

Kentucky’s leisure and hospitality sector grew by 700 jobs from January to February. The arts, entertainment and recreation subsector was down 100 jobs while the accommodations and food services subsector added 800 jobs. Employment in this sector was up 1,400 positions from one year ago.

In the government sector, employment rose by 300 jobs from January to February. Jobs numbers were up by 200 in federal government; up 200 in state government; and down 100 in local government. The total number of government jobs fell by 1,300 positions or 0.4% compared to February 2025.

Employment in the state’s mining and logging sector was stable from January to February. This sector had 600 fewer jobs in February 2026 compared to February 2025.

Employment also 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 February 2026 compared to one year ago.

The other services sector lost 200 jobs from January to February and 200 jobs compared to one year ago. This sector includes repairs and maintenance, personal care services and religious organizations.

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

Kentucky’s professional and business services sector declined by 500 jobs in February 2026. Among the subsectors, employment was down 500 jobs in professional, scientific and technical services; up 100 jobs in management of companies; and down 100 jobs in administrative, support and waste management. The sector had 900 more positions compared to February 2025.

Kentucky’s manufacturing sector contracted by 600 jobs from January to February. Durable goods manufacturing lost 900 jobs while the non-durable goods manufacturing subsector gained 300 jobs. Kentucky’s manufacturing employment was down by 2,100 positions compared to February 2025.

“While employment in durable goods manufacturing appeared to rebound in January, the gains were short lived as employment fell again in February,” said Clark. “Employment in the non-durable goods subsector has shown improvement over the past few months.”

Employment in the construction sector dropped by 600 jobs in February compared to January. Construction was down 500 jobs or 0.5% from one year ago.

Kentucky’s trade, transportation and utilities sector decreased by 1,100 positions from January to February. Employment was down 200 jobs in the wholesale trade subsector; down 500 jobs in retail trade; and down 400 positions in transportation, warehousing and utilities. The sector had 3,900 fewer jobs compared to a year ago.

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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