The Kentucky Center for Statistics (KYSTATS) reports that the state’s seasonally adjusted preliminary May 2025 unemployment rate was approximately 5%.
The preliminary unemployment rate for May 2025 was up 0.1 percentage points from the previous year and down 0.2 percentage points from April 2025.
The U.S. Department of Labor reported that the seasonally adjusted unemployment rate in the United States was 4.2% in May 2025, unchanged from April 2025.
The unemployment rate and other labor force statistics are derived from household estimates from the Current Population Survey. Agriculture occupations and self-employment are included in the survey, which is intended to gauge trends in the labor force.
In May 2025, there were 2,119,740 civilian workers in Kentucky, up 1,275 from April 2025. While the number of unemployed individuals fell by 3,046 to 106,312 in May, the number of employed people rose by 4,321 to 2,013,428.
In a different government survey of business establishments, Kentucky’s seasonally adjusted nonfarm employment grew by 5,100 jobs to 2,057,400 in May 2025 compared to April 2025. This survey does not include positions in agriculture or self-employment. Compared to May 2024, Kentucky’s nonfarm employment increased by 20,200 jobs, or 1%.
According to Mike Clark, Ph.D., director of the University of Kentucky’s Center for Business and Economic Research (CBER), the labor market in Kentucky improved in May, according to both the household and business surveys. Kentucky’s unemployment rate dropped to 5% for May as a result of a rise in the number of employed individuals and a fall in the number of unemployed people. Employers in Kentucky also reported higher payrolls, with significant increases in the manufacturing, leisure, and hospitality industries.
The Bureau of Labor Statistics’ Current Employment Statistics program provides nonfarm data. Six of Kentucky’s seven nonfarm North American Industry Classification System (NAICS) work sectors saw increases in employment from April to May 2025, while five saw decreases, according to the poll.
Between April and May 2025, Kentucky’s industrial sector added 3,300 jobs. There was a 3,100 increase in employment in the subsector of durable goods manufacturing. 200 new jobs were created in the non-durable products manufacturing subsector. Compared to May 2024, Kentucky’s manufacturing employment increased by 1,800 jobs, or 0.7%.
According to Clark, employment in Kentucky’s manufacturing sector increased by 3,300 jobs in May after dropping by 2,500 jobs in April. Employment in the manufacturing of durable goods has fluctuated during the last few months, which may be a sign of increased economic instability in the country’s overall economy. Nonetheless, Kentucky’s non-durable products manufacturing sector has seen more steady job growth.
In May, 1,200 new jobs were created in the leisure and hospitality industry. All of these extra jobs came from the arts, leisure, and recreation subsector. From April to May, employment in the subsector of lodging and food services remained constant. There were 1,000 more jobs in this industry than there were a year earlier.
Between April 2025 and May 2025, the financial activities sector added 800 jobs. While employment in the real estate, rental, and leasing subsector remained unchanged in May, employment in the finance and insurance subsector grew by 800 positions. There were 200 more jobs in this sector than there were in May 2024.
According to Clark, employment in Kentucky’s financial activities industry had been gradually dropping between 2023 and 2024, but during the first five months of 2025, this trend seemed to have reversed.
The trade, transportation, and utilities sector saw a 500-job boost in employment from April to May, but a 600-job decrease from the previous year. The transportation, warehousing, and utilities subsectors saw a 500-job increase in employment, while the wholesale and retail trade subsectors saw no change in employment.
Employment in the government sector increased by 400 positions between April and May of 2025. The federal government saw a 400-job decline in employment, the state government had a 200-job increase, and the municipal government saw a 600-job increase. In comparison to May 2024, the overall number of government jobs increased by 5,300, or 1.7%.
In May, 100 new jobs were created in the state’s mining and logging industry. In May 2025, there were 600 fewer employment in this sector than there were in May 2024.
In May, there were 100 fewer jobs in the construction industry than in April. But compared to a year earlier, construction employment increased by 6,600 positions, or 7.1%.
In May 2025, the number of jobs in Kentucky’s business and professional services industry fell by 200. Employment in the subsectors decreased by 200 jobs in administrative, support, and waste management; it increased by 100 jobs in company management; and it decreased by 100 jobs in professional, scientific, and technological services. Compared to May 2024, the industry had 100 fewer jobs.
Between April and May, the number of jobs in Kentucky’s information services industry decreased by 200. This sector includes the following industries: telecommunications, film and television, and conventional and software publishing. Compared to a year ago, there were 200 fewer employment in this industry.
While the number of positions in the other services sector increased by 400 over the previous year, it decreased by 300 between April and May. This industry encompasses religious institutions, personal care services, and repairs and maintenance.
In May 2025, the health services and education sector reported 400 job losses. There was a 200-job decline in the educational services subsector. Additionally, 200 jobs were lost in the health care and social support subsector. This sector has added 6,400 jobs, or 2%, since last May.
Nonmilitary workers and jobless Kentuckians actively looking for work are included in civilian labor force statistics. They exclude Kentuckians without jobs who haven’t sought work in the last four weeks.
Seasonal adjustments are made to Kentucky’s statewide unemployment rate and employment levels. Seasonal phenomena including weather changes, harvests, holidays, and the opening and shutting of schools cause significant swings in employment figures. These effects are removed by seasonal adjustments, which also facilitate the observation of statistical trends. Nevertheless, county unemployment statistics are not seasonally adjusted because of the tiny sample size.
To find out more about labor market data in Kentucky, visit the Kentucky Center for Statistics website.
Cabinet for Education and Labor in Kentucky