FRANKFORT, Ky. (March 10, 2025) — Kentucky’s annual unemployment rate for 2024 was 5.1%, according to the Kentucky Center for Statistics (KYSTATS), an agency of the Kentucky Education and Labor Cabinet. This is an increase from 4.3% in 2023.

The U.S. annual unemployment rate was 4% in 2024, up from the rate of 3.6% for 2023. 

The U.S. Bureau of Labor Statistics’ estimate of the number of employed Kentuckians for 2024 was 1,987,643. This figure was up 19,398 from the 1,968,245 employed in 2023. 

The number of unemployed Kentuckians for 2024 was 106,205, up 17,941 from the 88,264 unemployed in 2023. There were 23,346 fewer individuals unemployed in 2024 than 10 years ago. 

In 2024, the estimated number of Kentuckians in the civilian labor force was 2,093,848. This was up 37,339 from the 2,056,509 recorded in 2023, and up 82,010 from 10 years ago when the civilian labor force was 2,011,838. 

Labor force statistics, including the unemployment rate, are based on estimates from the Current Population Survey of households. The survey is designed to measure trends in the number of people working. It includes jobs in agriculture and individuals who are self-employed.

Twenty-one states, including Kentucky, experienced a statistically significant increase in their annual unemployment rates from 2023 to 2024. Kentucky’s unemployment rate for 2024 was higher than 47 states and lower than two states. Nevada had the highest unemployment rate in 2024 at 5.6%. South Dakota had the lowest rate at 1.8%. Kentucky had the highest unemployment rate among its surrounding states.

“The number of people employed in Kentucky grew by 1% from 2023 to 2024. However, the state saw people enter the labor force at a faster rate, which has contributed to an increase in the state’s unemployment rate,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “Kentucky’s labor force growth rate of 1.8% was also considerably faster than growth in the national labor force, which increased by only 0.6% from 2023 to 2024.”

In a separate federal survey of business establishments that excludes jobs in agriculture and people who are self-employed, Kentucky’s nonfarm annual average payroll employment in 2024 increased by 21,148 or 1% to 2,037,797 jobs.

“In total, Kentucky’s employers added workers to their payrolls in 2024,” said Clark. “The commonwealth saw particularly strong job growth in its education and health care services, government, and construction sectors. However, these gains were partially offset by losses in professional and business services, information, and financial activities sectors.”

Nonfarm data is provided by the Bureau of Labor Statistics’ Current Employment Statistics program. According to this survey, seven of Kentucky’s 11 major nonfarm job sectors listed in the North American Industry Classification System (NAICS) saw annual average employment increase in 2024 compared to 2023, while four saw average annual employment decrease.

The educational and health services sector expanded by 11,062 jobs in 2024 and gained 53,984 jobs, or 20.8%, over the past 10 years. Employment in the healthcare and social assistance subsector increased by 10,210 jobs in 2024 and gained 54,099 jobs over the past 10 years. Educational services in this sector include employees at private elementary, secondary and postsecondary schools along with other establishments that provide instruction and training. Educational services gained 852 jobs from 2023 to 2024, or 2.9%, and decreased by 114 jobs over the past 10 years.

The government sector, which includes federal, state and local employment in public education, public administration agencies and state-owned hospitals, added 6,665 jobs or 2.2% in 2024. Employment in this sector was down 8,267 jobs over the last 10 years, or 2.6%. During the past year, employment was up 850 jobs in federal government, 2,750 positions in state government, and 3,066 jobs in local government.

Kentucky’s construction sector expanded by 4,031 jobs in 2024, or 4.5%. The sector has increased by 21,044 jobs or 28.9% since 2010.

“Kentucky’s construction sector posted strong employment gains for 2024 with an increase of 4.5%,” said Clark. “Nationally, construction employment grew by only 2.5.”

Other services, a sector that includes repair and maintenance; personal and laundry services; and religious, civic, and professional organizations, added 1,934 jobs in 2024. The sector has risen by 10,206 positions or 16% in the last 10 years.

Kentucky’s manufacturing sector gained 1,748 jobs or 0.7% in 2024 for a total of 258,321 positions. Over the past 10 years, manufacturing employment was up 23,214 jobs, a gain of 9.9%. Durable manufacturing rose by 944 jobs, or 0.6% from 2023 to 2024, and non-durable manufacturing increased 805 jobs, or 0.9%.

“Kentucky’s manufacturers continued to add workers in 2024 even as manufacturing employment contracted nationally,” said Clark.

Employment in Kentucky’s leisure and hospitality sector expanded by 1,618 positions in 2024, and 23,498 jobs in the past 10 years. The accommodation and food services sector added 629 positions in 2024. The arts, entertainment and recreation subsector gained 989 jobs from 2023 to 2024.

Kentucky’s trade, transportation and utilities sector grew by 312 jobs or 0.1% in 2024. During the past 10 years, the number of jobs increased by 50,518 jobs or 13.4%. This is Kentucky’s largest sector based on employment with a total of 427,125 jobs or 21% of Kentucky’s nonfarm employment. Within the sector, wholesale trade gained 813 jobs from 2023 to 2024, retail trade gained 1,288 positions, and transportation, warehousing and utilities lost 1,789 jobs.

Employment in the mining and logging sector decreased by 5.1% with the loss of 435 jobs in 2024. Over a 10-year period the sector fell by 8,356 jobs. Other industries included in the sector are forestry; oil and gas extraction; and support activities for mining.

The financial activities sector lost 1,181 jobs from a year ago. Over the past 10 years, this sector has added 5,090 jobs or 5.6%. Within this sector, the finance and insurance subsector decreased by 1,347 jobs in 2024, while real estate, rental and leasing increased by 168 jobs.

The information sector, which includes establishments involved in publishing, Internet activities, data processing, broadcasting and news syndication, fell by 1,813 positions in 2024 from a year ago. The sector lost 2,844 jobs or 12% compared to 10 years ago.

Firms in the state’s professional and business services sector decreased by 2,792 jobs in 2024, or 1.2%. This sector includes professional, scientific and technical services; management of companies; and administrative and support management. In the last 10 years, the sector has grown by 12,005 positions or 5.6%. Within this sector, professional, scientific and technical services added 1,120 positions from 2023 to 2024, management of companies lost 158 jobs, and administrative and support and waste management lost 3,754 jobs.

Unemployment statistics are based on estimates and are compiled to measure trends rather than actually to count the number of people working. Civilian labor force statistics include non-military 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.

Learn more about Kentucky labor market information at http://kystats.ky.gov/KYLMI.