FRANKFORT, Ky. (Aug. 20, 2026) — Kentucky’s seasonally adjusted preliminary July 2026 unemployment rate was 4.7%, according to the Kentucky Center for Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet.

The preliminary July 2026 jobless rate was unchanged from June and up 0.1 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for July 2026 was 4.1%, which was down from the 4.2% recorded for June and down from the 4.3% recorded in July 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 2,103,837 in July 2026, an increase of 6,183 individuals from June. The number of people employed in July was 2,004,231, an increase of 4,760 from June. The number of unemployed was 99,606, an increase of 1,423 from June.

“Kentucky’s unemployment rate held steady at 4.7% for July,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “Kentucky saw both more people reporting that they had a job and more people searching for employment. July represents the first month of 2026 with an increase in the number of 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 increased by 2,300 jobs to 2,033,300 in July compared to June. Kentucky’s nonfarm employment was down 2,600 jobs or 0.1% compared to July 2025.

“Businesses also reported an uptick in employment for July,” said Clark. “The job gains were concentrated in the manufacturing, and education and health services sectors.”

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

Employment in Kentucky’s manufacturing sector jumped 1,700 jobs from June to July. Employment was up 1,500 positions among durable goods manufacturers and increased by 200 jobs among non-durable goods manufacturers. Kentucky’s manufacturing employment was down by 3,000 positions compared to July 2025.

“Throughout most of 2026, durable goods manufacturing employment has declined in Kentucky but increased nationally,” said Clark. “In July, however, Kentucky saw sizable job gains in this sector. It is unclear whether this represents a one-time increase or a change in the general trend.”

The number of educational and health services sector jobs in Kentucky was up 1,300 positions in July. Employment was up 1,600 jobs in the health care and social assistance subsector and down 300 jobs in the educational services subsector. Since last July, this sector has grown by 4,100 jobs or 1.3%.

Kentucky’s trade, transportation and utilities sector increased by 1,200 positions from June to July. Employment was down 300 jobs in the wholesale trade subsector; up 600 jobs in retail trade; and up 900 jobs in transportation, warehousing and utilities. The sector had 1,600 fewer jobs compared to a year ago.

The financial activities sector gained 200 jobs from June to July. All of the job gains occurred in the finance and insurance subsector. Employment in the real estate, rental and leasing subsector was unchanged in July. This sector had 200 fewer positions compared to July 2025.

Employment in the state’s mining and logging sector was up 200 jobs in July. The number of jobs in this sector was unchanged compared to a year ago.

Kentucky’s professional and business services sector fell by 100 jobs in July 2026. Employment was up 400 jobs in the professional, scientific and technical services subsector; down 400 jobs in management of companies; and down 100 jobs in the administrative, support and waste management subsector. The sector had 2,600 fewer positions compared to July 2025.

Employment in Kentucky’s information services sector fell by 100 positions from June to July. The industries in this sector include traditional publishing as well as software publishing; motion pictures and broadcasting; and telecommunications. The sector was down 600 jobs in July 2026 compared to one year ago.

The other services sector lost 200 jobs from June to July but was up 500 jobs compared to one year ago. This sector includes repairs and maintenance, personal care services and religious organizations.

The government sector declined by 500 jobs from June to July. Employment was down 100 jobs in federal government; down 100 jobs in state government; and down 300 jobs in local government. The total number of government jobs fell by 2,000 positions or 0.6% compared to July 2025.

Employment in the construction sector fell by 500 jobs in July compared to June. Construction was up 100 jobs or 0.1% from one year ago.

Kentucky’s leisure and hospitality sector declined by 900 jobs from June to July. The arts, entertainment and recreation subsector was down 1,100 jobs while the accommodations and food services subsector added 200 jobs. Employment in this sector was up 2,700 positions from one year ago.

“Employment in Kentucky’s leisure and hospitality businesses fell by 900 jobs in July but this was after adding 2,000 jobs in June,” said Clark. “Generally, employment in this sector has increased over the past few months.”

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.