FRANKFORT, Ky. (March 13, 2025) — Kentucky’s seasonally adjusted preliminary January 2025 unemployment rate was 5.3%, according to the Kentucky Center for Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet.

The preliminary January 2025 jobless rate was unchanged from December 2024 and up 0.6 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for January 2025 was 4%, which was down 0.1 percentage points from December 2024, 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 2,109,358 in January 2025, an increase of 3,931 individuals from December 2024. The number of people employed in January increased by 4,144 to 1,996,971 while the number unemployed decreased by 213 to 112,387.

“Kentucky’s unemployment rate held steady at 5.3% from December to January as workers found jobs at roughly the same rate as workers entered the labor force,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “Current estimates indicate that the civilian labor force grew throughout most of 2024 before waning in the last quarter. Growth resumed in January.”

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 4,900 jobs to 2,039,900 in January 2025 compared to December 2024. Kentucky’s nonfarm employment was up 10,100 jobs or 0.5% compared to January 2024.

“Kentucky’s employers reported fewer jobs in January across all but one of Kentucky’s major industrial sectors,” said Clark. “While January’s employment estimates were lower than December’s, employment has generally been increasing in recent months. It is not uncommon for employment to decline in a single month even when the general trend shows employment growing. Therefore, a single month decline does not by itself suggest a change in the overall trend.”

Nonfarm data is provided by the Bureau of Labor Statistics’ Current Employment Statistics program. According to the survey, employment increased from December to January for one of Kentucky’s major nonfarm North American Industry Classification System (NAICS) job sectors in January 2025, decreased for nine, and was unchanged for one.

Employment in Kentucky’s professional and business services sector increased by 500 jobs in January 2025. Among the subsectors, employment was up 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 500 more positions compared to January 2024.

Kentucky’s manufacturing sector was unchanged from December 2024 to January 2025. Employment was down 100 in the durable goods manufacturing subsector. These losses were offset by an increase of 100 jobs in the non-durable goods manufacturing subsector. Kentucky’s manufacturing employment fell by 1,500 positions or 0.6% compared to January 2024.

The state’s mining and logging sector decreased by 100 jobs in January. This sector had 700 fewer jobs in January 2025 compared to January 2024.

The educational and health services sector lost 100 positions in January 2025. Employment in the health care and social assistance subsector rose by 300 jobs from December to January. The educational services subsector was down 400 jobs. Since last January, this sector has grown by 8,100 jobs or 2.6%.

Employment in Kentucky’s information services sector declined by 300 positions from December to January. 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 dropped by 800 positions from one year ago.

Employment in the financial activities sector fell by 400 jobs from December 2024 to January 2025. The finance and insurance subsector lost 200 jobs and the real estate, rental and leasing subsector lost 200 jobs. This sector had 1,700 fewer positions compared to January 2024.

In the government sector, employment was down 700 jobs from December 2024 to January 2025. Employment increased by 200 jobs in federal government; fell by 100 jobs in state government; and fell by 800 jobs in local government. The total number of government jobs rose by 3,500 positions or 1.1% compared to January 2024.

The number of positions in the construction sector fell by 800 jobs from December 2024 to January 2025 but was up 1,100 positions or 1.2% from one year ago.

The trade, transportation and utilities sector lost 900 positions from December to January but was up 2,300 jobs compared to a year ago. Among the subsectors, employment was down 400 jobs in wholesale trade; down 700 positions in retail trade; and up 200 jobs in transportation, warehousing and utilities.

The other services sector dropped by 900 jobs from December to January and had 300 fewer positions in January 2025 compared to January 2024. This sector includes repairs and maintenance, personal care services and religious organizations.

Employment in the leisure and hospitality sector declined 1,200 positions in January. This sector reported 400 fewer jobs in January than one year ago. The accommodations and food services subsector was down by 500 positions from December to January. The arts, entertainment and recreation subsector decreased by 700 jobs in January.

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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