FRANKFORT, Ky. (April 13, 2026) — Kentucky’s seasonally adjusted January 2026 unemployment rate was 4.3%, according to the Kentucky Center for Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet.

The January 2026 jobless rate was down 0.1 percentage points from December of 2025 and down 0.5 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for January 2026 was 4.3%, which was down from the 4.4% reported for December 2025 and up from the 4.0% recorded in January 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 2,114,515 in January 2026, a decrease of 5,476 individuals from December 2025. The number of people employed in January was 2,024,289, a decline of 3,119 from December. The number of unemployed was 90,226, a decrease of 2,357 from December 2025.

“The latest estimates indicate that Kentucky’s labor force contracted in January,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “There were both fewer people employed and fewer people unemployed for the month. Overall, these losses contributed to Kentucky having a lower unemployment rate 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 increased by 5,600 jobs to 2,034,900 in January 2026 compared to December 2025. Kentucky’s nonfarm employment was up 7,400 jobs or 0.4% compared to January 2025.

“While fewer workers reported being employed, preliminary estimates for January indicated that businesses expanded their payroll in January,” said Clark. “Employment increased in the trade, transportation and utilities; education and health care; and manufacturing sectors.”

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 seven of Kentucky’s major nonfarm North American Industry Classification System (NAICS) job sectors and decreased for four.

Employment in Kentucky’s trade, transportation and utilities sector jumped by 2,000 positions from December to January. Employment was down 400 jobs in the wholesale trade subsector; up 1,500 jobs in retail trade; and up 900 positions in transportation, warehousing and utilities.  The sector was down 2,700 jobs compared to a year ago.

“After eight months of decline, employment in Kentucky’s trade, transportation and utilities sector increased,” said Clark. “Employment in the sector is still down compared to a year ago.”

The educational and health services sector reported 1,700 more jobs in January 2026. Employment was up 2,000 jobs in the health care and social assistance subsector from December to January and down 300 positions in the educational services subsector. Since last January, this sector has grown by 3,400 jobs or 1.1%.

Kentucky’s manufacturing sector increased by 1,300 jobs from December 2025 to January 2026. All of the job gains were in durable goods manufacturing. Employment in the nondurable goods manufacturing subsector was unchanged. Kentucky’s manufacturing employment was down by 1,400 positions compared to January 2025.

“Durable goods manufacturing increased after several months of decreases,” said Clark. “While the increase is encouraging, it represents one month and does not necessarily reflect a reversal in the trend.”

Kentucky’s professional and business services sector rose by 1,100 jobs in January 2026. Among the subsectors, employment was unchanged in professional, scientific and technical services; down 200 jobs in management of companies; and up 1,300 jobs in administrative, support and waste management. The sector had 2,700 more positions compared to January 2025.

Employment in the financial activities sector was up 600 jobs from December 2025 to January 2026. Employment levels were up by 500 jobs in the finance and insurance subsector and up by 100 jobs in the real estate, rental and leasing subsector. This sector had 1,000 more positions compared to January 2025.

In the government sector, employment rose by 400 jobs from December 2025 to January 2026. Jobs numbers were down by 100 in federal government; unchanged in state government; and up 500 in local government. The total number of government jobs rose by 600 positions or 0.2% compared to January 2025.

The other services sector added 100 jobs from December to January and 200 jobs compared to one year ago. This sector includes repairs and maintenance, personal care services and religious organizations.

Kentucky’s information services sector lost 100 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 sector was down 700 jobs in January 2026 compared to one year ago.

The state’s mining and logging sector fell by 200 jobs from December to January. This sector had 500 fewer jobs in January 2026 compared to January 2025.

Employment in the construction sector dropped by 300 jobs in January 2026 compared to December 2025. Construction increased by 3,000 positions or 3.3% from one year ago.

Kentucky’s leisure and hospitality sector contracted by 1,000 jobs from December to January. The arts, entertainment and recreation subsector was down 100 jobs while the accommodations and food services subsector lost 900 jobs. Employment in this sector was up 1,800 positions from one 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.