FRANKFORT, Ky. (June 20, 2025) — Kentucky’s seasonally adjusted preliminary May 2025 unemployment rate was 5%, according to the Kentucky Center for Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet.

The preliminary May 2025 jobless rate was down 0.2 percentage points from April 2025 and up 0.1 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for May 2025 was 4.2%, which was unchanged from April 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 2,119,740 in May 2025, an increase of 1,275 individuals from April 2025. The number of people employed in May increased by 4,321 to 2,013,428 while the number unemployed decreased by 3,046 to 106,312.

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 5,100 jobs to 2,057,400 in May 2025 compared to April 2025. Kentucky’s nonfarm employment was up 20,200 jobs or 1% compared to May 2024.

“Both the household and business surveys indicate that Kentucky’s labor market improved in May,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “Kentucky saw an increase in the number of people working and a decrease in the number of people who were unemployed, which pushed the state’s unemployment rate down to 5% for May. Kentucky employers also reported an increase in their payrolls with strong gains in the manufacturing and leisure and hospitality sectors.”

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

Kentucky’s manufacturing sector jumped 3,300 jobs from April 2025 to May 2025. Employment in the durable goods manufacturing subsector was up 3,100 jobs. The non-durable goods manufacturing subsector added 200 jobs. Kentucky’s manufacturing employment was up by 1,800 positions or 0.7% compared to May 2024.

“After declining by 2,500 jobs in April, employment in Kentucky’s manufacturing sector bounced back with the addition of 3,300 jobs in May,” said Clark. “Over the past few months, we have seen some volatility in durable goods manufacturing employment, which could reflect a higher level of economic uncertainty across the broader national economy. However, employment in Kentucky’s non-durable goods manufacturing has grown more consistently.” 

The leisure and hospitality sector added 1,200 jobs in May. The arts, entertainment and recreation subsector accounted for all these additional jobs. Employment in the accommodations and food services subsector was unchanged from April to May. Employment in this sector was up 1,000 positions from one year ago.

The financial activities sector added 800 jobs from April 2025 to May 2025. Employment in the finance and insurance subsector increased by 800 jobs in May, while employment in the real estate, rental and leasing subsector did not change. This sector had 200 more positions compared to May 2024.

“While employment in Kentucky’s financial activities sector had been steadily declining from 2023 through 2024, this trend seems to have reversed over the first five months of 2025,” said Clark. 

Employment in the trade, transportation and utilities sector increased by 500 positions from April to May but was down 600 jobs compared to a year ago. Employment was up 500 jobs in the transportation, warehousing and utilities subsector and unchanged in both the wholesale trade and retail trade subsectors.

In the government sector, employment was up 400 jobs from April 2025 to May 2025. Among the subsectors, employment was down by 400 jobs in the federal government; up 200 jobs in the state government; and up 600 jobs in the local government. The total number of government jobs rose by 5,300 positions or 1.7% compared to May 2024.

The state’s mining and logging sector added 100 jobs in May. This sector had 600 fewer jobs in May 2025 compared to May 2024.

Employment in the construction sector was down by 100 jobs in May than in April. However, construction employment was up 6,600 positions or 7.1% from one year ago.

Kentucky’s professional and business services sector decreased by 200 jobs in May 2025. Among the subsectors, employment was down 100 jobs in professional, scientific and technical services; up 100 jobs in management of companies; and down 200 jobs in administrative, support and waste management. The sector had 100 fewer positions compared to May 2024.

Employment in Kentucky’s information services sector fell by 200 positions from April to May. 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 was down by 200 positions from one year ago.

The other services sector declined by 300 jobs from April to May but was up 400 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 400 fewer positions in May 2025. Employment in the educational services subsector fell by 200 jobs. The health care and social assistance subsector also fell by 200 jobs. Since last May, this sector has grown by 6,400 jobs or 2%.

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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