FRANKFORT, Ky. (Sept. 17, 2026) — Kentucky’s seasonally adjusted preliminary August 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 August 2026 jobless rate was unchanged from July and up 0.2 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for August 2026 was 4.1%, which was unchanged from July and down from the 4.3% recorded in August 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 2,109,516 in August 2026, an increase of 5,625 individuals from July. The number of people employed in August was 2,010,261, an increase of 6,005 from July. The number of unemployed was 99,255, a decrease of 380 from July.

“Both the number of workers in the labor force and the number employed increased in August,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “After declining for the first five months of 2026, Kentucky’s labor force has now increased for the past three months as workers appear to be entering and returning to the labor force. The number of workers employed increased faster than the labor force, which led to a slight decline in the number of people unemployed.”

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 200 jobs to 2,034,200 in August compared to July. Kentucky’s nonfarm employment was down 1,800 jobs or 0.1% compared to August 2025.

“While the household survey suggests more of Kentucky’s workers were employed in August, businesses reported little change in the number of total jobs,” said Clark. “Employers in Kentucky’s construction, education and health services, and manufacturing sectors expanded their payrolls in August. These gains were mostly offset by declines in sectors such as trade, transportation and utilities; leisure and hospitality; and professional and business services.”

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 and decreased for five.

Employment in the construction sector jumped by 1,100 jobs in August compared to July. Construction was up 1,400 jobs or 1.5% from one year ago.

“The increase in construction jobs for August likely reflects the normal volatility of jobs in this sector,” said Clark. “While construction employment tends to bounce around every month due to weather and other factors, the overall trend for Kentucky’s construction employment has been stable over the past few months.”

The number of educational and health services sector jobs in Kentucky was up 800 positions in August. Employment was up 400 jobs in the health care and social assistance subsector and up 400 jobs in the educational services subsector. Since last August, this sector has grown by 4,000 jobs or 1.3%.

Employment in Kentucky’s manufacturing sector rose by 700 jobs from July to August. Employment was up 600 positions among durable goods manufacturers and increased by 100 jobs among non-durable goods manufacturers. Kentucky’s manufacturing employment was down by 2,000 positions compared to August 2025.

“After trimming payrolls through much of 2026, Kentucky’s manufacturers have now added workers over the past three months,” said Clark.

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

Employment in Kentucky’s information services sector increased 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 sector was down 100 jobs in August 2026 compared to one year ago.

The government sector added 100 jobs from July to August. Employment was unchanged in both the federal and local government sectors but was up 100 jobs in state government. The total number of government jobs fell by 2,200 positions or 0.7% compared to August 2025.

Employment in the state’s mining and logging sector was down 100 jobs in August. The number of jobs in this sector was unchanged compared to a year ago.

The other services sector lost 400 jobs from July to August but was up 100 jobs compared to one year ago. This sector includes repairs and maintenance, personal care services and religious organizations.

Kentucky’s professional and business services sector fell by 500 jobs in August 2026. Employment was up 200 jobs in the professional, scientific and technical services subsector; unchanged in management of companies; and down 700 jobs in the administrative, support and waste management subsector. The sector had 3,400 fewer positions compared to August 2025.

Kentucky’s leisure and hospitality sector declined by 900 jobs from July to August. The accommodation and food services subsector was down 1,600 jobs. However, these losses were partially offset by a gain of 700 jobs in the arts, entertainment and recreation subsector. Employment in this sector was up 1,800 positions from one year ago.

Kentucky’s trade, transportation and utilities sector decreased by 900 positions from July to August. Employment was down 600 jobs in the wholesale trade subsector; up 1,500 jobs in retail trade; and down 1,800 jobs in transportation, warehousing and utilities. The sector had 1,200 fewer jobs compared to a 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.