Kentucky's May 2025 unemployment rate dropped slightly, reaching 5%, according to KYSTATS, compared to the April figure.
In the latest employment report from the Kentucky Center for Statistics (KYSTATS), it has been revealed that the state's labor market has seen significant growth in key sectors during May 2025.
The major job sector growths were primarily in construction, education and health services, and government sectors. On the other hand, manufacturing showed a slight decline compared to the previous month.
Construction added about 6,000 jobs in the first six months of 2025, with a recent slowing or pullback in June 2025, indicating a decline of 900 jobs compared to May 2025. This sector has shown steady growth in the past few months, adding approximately 6,000 jobs.
Education and health services saw an increase of approximately 3,600 jobs in the same period, showing steady growth in those sectors. This growth is a positive sign for the state's future workforce and the healthcare industry.
Government employment increased by around 3,400 jobs in the first half of 2025, contributing notably to overall job growth. The federal government employment decreased by 400 jobs, while state government employment increased by 200 jobs and local government employment increased by 600 jobs.
Manufacturing employment in Kentucky reached 259,600 jobs in June 2025, which was 900 more jobs than June 2024 but 800 fewer than in May 2025. This modest decline from May to June 2025 is a slight setback for the sector.
Overall, Kentucky employers added about 20,600 new jobs from January to June 2025, more than doubling the job gains compared to the same period in 2024. The state's total reported jobs as of June 2025 were 2,060,200, surpassing 2 million employed for the first time historically (since January 2023).
The seasonally adjusted unemployment rate for May 2025 was about 5.0%, which then slightly fell to 4.9% in June 2025. This marginal improvement in labor market conditions is a positive sign for the state's economy.
For more detailed information about Kentucky's labor market, visit the Kentucky Center for Statistics website.
- The weather might affect transportation infrastructure during the upcoming arts festival events, as forecasters predict continuous rainfall over the weekend.
- The growth in government employment has opened up opportunities in various areas, such as culture, finance, and business.
- The Kentucky economy was boosted by the surge in jobs in key sectors like construction, education, and health services, as well as the steady growth in manufacturing.
- Despite the decline in June 2025, the construction sector remains a significant contributor to job growth in Kentucky, with approximately 6,000 jobs added in the first six months of 2025.
- The education sector benefited from a job increase of approximately 3,600 positions between January and June 2025, which is a positive sign for the state's future workforce.
- The health services sector, coupled with the growth in education, could lead to improved healthcare access and quality for residents of Kentucky.
