FRANKFORT, Ky. (July 16, 2026) — Kentucky’s seasonally adjusted preliminary June 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 June 2026 jobless rate was up from the 4.5% reported in May and up 0.1 percentage points from one year ago.
The U.S. seasonally adjusted jobless rate for June 2026 was 4.2%, which was down from the 4.3% recorded for May and up from the 4.1% recorded in June 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 2,097,681 in June 2026, an increase of 616 individuals from May. The number of people employed in June was 1,999,481, a decline of 4,175 from May. The number of unemployed was 98,200, an increase of 4,791 from May.
“Kentucky’s unemployment rate increased to 4.7% in June,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “The increase reflects a weaker labor market as fewer workers reported having a job and more reported that they were actively looking for work. The estimated number of Kentucky workers employed has decreased during each of the first six months of 2026.”
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 100 jobs to 2,030,400 in June compared to May. Kentucky’s nonfarm employment was down 6,600 jobs or 0.3% compared to June 2025.
“Businesses reported slightly higher total nonfarm employment levels for June,” said Clark. “The difference was small suggesting that total employment was essentially unchanged from May. However, several sectors including professional and business services, education and health services, and manufacturing reported weaker employment. These losses were offset by large employment gains in arts, entertainment and recreation.”
Nonfarm data is provided by the Bureau of Labor Statistics’ Current Employment Statistics program. According to the survey, employment increased from May to June for three of Kentucky’s major nonfarm North American Industry Classification System (NAICS) job sectors, decreased for six and was unchanged for two.
Kentucky’s leisure and hospitality sector grew by 2,000 jobs from May to June. The arts, entertainment and recreation subsector was up 1,600 jobs, and the accommodations and food services subsector added 400 jobs. Employment in this sector was up 3,400 positions from one year ago.
“Preliminary estimates indicated that employment in Kentucky’s arts, entertainment and recreation jumped by 5.9% from May to June,” said Clark. “This represents a large gain for the sector, but large changes are often followed by offsetting changes in the following months as employment levels settle into their regular trends.”
The other services sector added 400 jobs from May to June and was up 1,100 jobs compared to one year ago. This sector includes repairs and maintenance, personal care services and religious organizations.
Kentucky’s trade, transportation and utilities sector increased by 300 positions from May to June. Employment was down 700 jobs in the wholesale trade subsector; up 1,000 in retail trade; and unchanged in transportation, warehousing and utilities. The sector had 3,100 fewer jobs compared to a year ago.
“The addition of 1,000 jobs by Kentucky’s retail trade subsector appears to reflect monthly volatility,” said Clark. “Employment numbers in this subsector have bounced around in recent months. The overall level of retail employment has generally been down compared to last year.”
Employment in the state’s mining and logging sector was unchanged in June. This sector had 300 fewer jobs in June 2026 compared to June 2025.
Employment in Kentucky’s information services sector did not change from May to June. The industries in this sector include traditional publishing as well as software publishing; motion pictures and broadcasting; and telecommunications. The sector was down 400 jobs in June 2026 compared to one year ago.
The financial activities sector lost 100 jobs from May to June. All of the job losses occurred in the finance and insurance subsector. Employment in the real estate, rental and leasing subsector was unchanged in June. This sector had 400 fewer positions compared to June 2025.
The government sector declined by 100 jobs from May to June. Jobs numbers were unchanged in federal government; up 100 jobs in state government; and down 200 jobs in local government. The total number of government jobs fell by 1,600 positions or 0.5% compared to June 2025.
Employment in the construction sector fell by 200 jobs in June compared to May. Construction was up 500 jobs or 0.5% from one year ago.
Kentucky’s manufacturing sector was down 300 jobs from May to June. Employment was down 600 positions among durable goods manufacturers but increased by 300 jobs among non-durable goods manufacturers. Kentucky’s manufacturing employment was down by 6,000 positions compared to June 2025.
The number of educational and health services sector jobs in Kentucky contracted by 600 positions from May to June. This decrease was isolated to the educational services subsector. Employment was unchanged in the health care and social assistance subsector. Since last June, this sector has grown by 1,800 jobs or 0.6%.
Employment in Kentucky’s professional and business services sector fell by 1,300 jobs in June 2026. Employment was up 300 jobs in the professional, scientific and technical services subsector; up 100 jobs in management of companies; and down 1,700 jobs in administrative, support and waste management subsector. The sector had 1,600 fewer positions compared to June 2025.
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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