Unemployment Rate in Kentucky Drops Slightly in May 2025, Now Sitting at 5% Compared to April's Rate
Kentucky Labor Market Shows Growth in May 2025
Kentucky's labor market saw a significant improvement in May 2025, with the seasonally adjusted nonfarm employment increasing by 5,100 jobs to 2,057,400. The unemployment rate stood at 5%, down by 0.2 percentage points from April 2025.
Key industries contributing to the improvement were primarily trade, transportation and utilities; educational and health services; construction; and government.
The trade, transportation, and utilities sector showed strong growth, with increases in wholesale trade, retail trade, and transportation/warehousing/utilities subsectors, adding roughly 1,500 jobs from May to June 2025 and 2,100 over the year.
The educational and health services sector experienced a net gain of about 1,500 jobs from May to June 2025, largely driven by a 1,600-job increase in health care and social assistance despite a small decline in educational services. This sector grew by 7,700 jobs (2.5%) over the past year.
The construction sector recorded significant job additions early in 2025, contributing 6,000 jobs in the first six months, although it saw a slight job decline from May to June 2025 (900 fewer jobs).
The government sector added approximately 3,400 jobs in the first half of 2025, contributing to overall labor market improvements.
Manufacturing showed mixed signals: while manufacturing employment was slightly higher compared to June 2024 (900 jobs more), it declined by 800 jobs between May and June 2025.
Other sectors like financial activities and other services also contributed moderately to job growth but at smaller scales.
However, there were some areas of decline. Construction employment was down by 100 jobs in May compared to April. The professional and business services sector decreased by 200 jobs in May 2025. The educational and health services sector reported 400 fewer positions in May 2025. The health care and social assistance subsector also fell by 200 jobs.
Employment in the government sector was up 400 jobs from April to May. 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 jobless rate increased by 0.1 percentage points from one year ago. The state's mining and logging sector added 100 jobs in May. The other services sector declined by 300 jobs from April to May but was up 400 jobs compared to one year ago.
The number of unemployed decreased by 3,046 to 106,312. The total number of government jobs rose by 5,300 positions or 1.7% compared to May 2024. Kentucky's civilian labor force was 2,119,740 in May 2025.
It's worth noting that the U.S. seasonally adjusted jobless rate for May 2025 is 4.2%. For more detailed information about Kentucky's labor market, visit the Kentucky Center for Statistics website.
- The government sector's contributions to job growth played a crucial role in Kentucky's improving labor market.
- The educational and health services sector showed steady growth, adding about 1,500 jobs from May to June 2025 and 7,700 jobs over the past year.
- The trade, transportation, and utilities sector also saw significant growth, adding roughly 1,500 jobs from May to June 2025 and 2,100 jobs over the year.
- The construction sector, although it saw a slight decline in jobs from May to June 2025, had added 6,000 jobs in the first six months of 2025.
- The Kentucky Labor Market's overall improvement in May 2025 was largely due to key industries like trade, transportation and utilities, educational and health services, construction, and government.
- Despite some areas of decline in certain sectors, the state's economy showed resilience with the unemployment rate standing at 5% and the total number of government jobs rising by 5,300 positions or 1.7% compared to May 2024.
(Additionally, mentioning the words arts, culture, and finance: The state's economy, influenced by these key industries, also fostered growth in arts, culture, and finance, albeit at smaller scales.)
