FRANKFORT, Ky. (Sept. 18, 2025) — Kentucky’s seasonally adjusted preliminary August 2025 unemployment rate was 4.7%, according to the Kentucky Center for Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet.

The preliminary August 2025 jobless rate was down 0.2 percentage points from July 2025 and down 0.5 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for August 2025 was 4.3%, which was up from the 4.2% reported for 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 2,114,861 in August 2025, a decrease of 2,963 individuals from July 2025. The number of people employed in August decreased by 131 to 2,014,738 while the number unemployed decreased by 2,832 to 100,123.

“Kentucky’s unemployment rate decreased in August, but the decrease was not due to more people finding work,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “Over the past three months, we have been seeing people exit the labor market. These exits have mostly occurred among those who were unemployed and searching for a job. When unemployed workers leave the labor force, the unemployment rate can fall. The number of people reporting that they were employed changed little over the past two months.”

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 3,700 jobs to 2,062,200 in August 2025 compared to July 2025. Kentucky’s nonfarm employment was up 19,800 jobs or 1% compared to August 2024.

“While there has been little change in the number of people reporting that they were employed, businesses reported an increase in hiring for August,” said Clark. “Total nonfarm employment increased by 3,700 jobs with leisure and hospitality, government, and professional and businesses services reporting the largest gains.”

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

Kentucky’s leisure and hospitality sector jumped by 1,200 jobs from July to August. The arts, entertainment and recreation subsector added 400 jobs while the accommodations and food services subsector increased by 800 jobs. Employment in this sector was up 1,600 positions from one year ago.

In the government sector, employment rose by 900 jobs from July 2025 to August 2025. Among the subsectors, employment fell by 100 jobs in the federal government; increased by 400 jobs in state government; and increased by 600 jobs in local government. The total number of government jobs rose by 3,300 positions or 1% compared to August 2024.

Kentucky’s professional and business services sector increased by 900 jobs in August 2025. Among the subsectors, employment was up 300 jobs in professional, scientific and technical services; down 100 jobs in management of companies; and up 700 jobs in administrative, support and waste management. The sector had 1,000 more positions compared to August 2024.

Kentucky’s trade, transportation and utilities sector jumped by 700 positions from July to August and rose 100 jobs compared to a year ago. Employment was up 400 jobs in the wholesale trade subsector; up 500 jobs in retail trade; and down 200 positions in transportation, warehousing and utilities.

The financial activities sector had 500 more jobs from July 2025 to August 2025. Employment was up by 400 jobs in the finance and insurance subsector and up by 100 jobs in the real estate, rental and leasing subsector. This sector had 1,900 more positions compared to August 2024.

Employment in the construction sector rose by 400 jobs in August than in July. Construction employment increased by 6,000 positions or 6.3% from one year ago.

The number of jobs in the state’s mining and logging sector was unchanged from July to August. This sector had 700 fewer jobs in August 2025 compared to August 2024.

Employment in Kentucky’s information services sector fell by 100 positions from July to August. 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 in August 2025 was up 300 jobs compared to one year ago.

Kentucky’s manufacturing sector declined 200 jobs from July 2025 to August 2025. Durable goods manufacturing saw employment fall by 1,500 jobs. A gain of 1,300 jobs in nondurable goods manufacturing helped to offset most of the losses in durable goods manufacturing for the month. Kentucky’s manufacturing employment was down by 100 positions compared to August 2024.

“Manufacturing employment continued to exhibit some volatility,” said Clark. “Nondurable goods manufacturing’s employment gains for August helped to recover most of the jobs lost in June and July. Employment in durable goods manufacturing fell over the past three months.”

The other services sector lost 300 jobs from July to August but rose 1,100 jobs compared to one year ago. This sector includes repairs and maintenance, personal care services and religious organizations.

The educational and health services sector reported 300 fewer jobs in August 2025. Employment in the educational services subsector fell by 100 positions. The health care and social assistance subsector declined by 200 jobs. Since last August, this sector has grown by 5,300 jobs or 1.7%.

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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