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<\/a>(Click for larger image)<\/p>\nLabor 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.<\/p>\n
Kentucky\u2019s 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.<\/p>\n
In a separate federal survey of business establishments that excludes jobs in agriculture and people who are self-employed, Kentucky\u2019s seasonally adjusted nonfarm employment increased by 5,100 jobs to 2,057,400 in May 2025 compared to April 2025. Kentucky\u2019s nonfarm employment was up 20,200 jobs or 1% compared to May 2024.<\/p>\n
\u201cBoth the household and business surveys indicate that Kentucky\u2019s labor market improved in May,\u201d said University of Kentucky\u2019s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. \u201cKentucky saw an increase in the number of people working and a decrease in the number of people who were unemployed, which pushed the state\u2019s 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.\u201d<\/p>\n
Nonfarm data is provided by the Bureau of Labor Statistics\u2019 Current Employment Statistics program. According to the survey, employment increased from April to May for six of Kentucky\u2019s major nonfarm North American Industry Classification System (NAICS) job sectors in May 2025 and decreased for five.<\/p>\n
Kentucky\u2019s 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\u2019s manufacturing employment was up by 1,800 positions or 0.7% compared to May 2024.<\/p>\n
\u201cAfter declining by 2,500 jobs in April, employment in Kentucky\u2019s manufacturing sector bounced back with the addition of 3,300 jobs in May,\u201d said Clark. \u201cOver 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\u2019s non-durable goods manufacturing has grown more consistently.\u201d <\/p>\n
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.<\/p>\n 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.<\/p>\n \u201cWhile employment in Kentucky\u2019s financial activities sector had been steadily declining from 2023 through 2024, this trend seems to have reversed over the first five months of 2025,\u201d said Clark. <\/p>\n 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.<\/p>\n 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.<\/p>\n The state\u2019s mining and logging sector added 100 jobs in May. This sector had 600 fewer jobs in May 2025 compared to May 2024.<\/p>\n 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.<\/p>\n Kentucky\u2019s 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.<\/p>\n<\/a>(Click for larger image)<\/p>\n