Kentucky’s unemployment rate held at 4.7% in August even as more residents entered the labor market, a combination that points to modest employment growth without a clear easing in joblessness.
The state’s civilian labor force rose by about 5,600 people from July to 2.109 million, while the number of employed residents increased by roughly 6,000 to 2.010 million, according to the latest Kentucky labor-market table from the U.S. Bureau of Labor Statistics. The estimated number of unemployed residents edged down by about 400 to 99,300. Because the labor force and employment increased at nearly the same pace, the seasonally adjusted unemployment rate remained unchanged.
The 4.7% rate was preliminary and tied Kentucky at 40th in the agency’s August state unemployment ranking. That ranking is descriptive, not a measure of economic performance by itself: a state’s rate reflects both the number of people working and the number actively seeking work. People who stop looking are not counted as unemployed.
Compared with August 2025, the labor force was about 6,900 smaller, while unemployment was about 3,200 higher and the rate was up from 4.5%. The federal release notes that state labor-force estimates are model-based and benchmarked to broader population and survey data. Monthly movements should therefore be read as estimates, with the agency emphasizing only changes that meet its statistical-significance threshold.
Payroll data showed a steadier picture. Kentucky employers reported 2.034 million nonfarm jobs in August, up by about 200 from July but down 0.1% from a year earlier. The federal agency said employment was statistically unchanged in most states during the month, and Kentucky was not among the four with a significant payroll increase, according to the September 18 state employment release.
Industry figures nevertheless show where the state added and lost jobs. Construction payrolls rose by about 1,100 from July to 93,800, while education and health services added roughly 800 positions to reach 324,000. Manufacturing increased by about 700 jobs to 249,800. Those monthly gains were partly offset by declines of about 900 jobs in trade, transportation and utilities, 900 in leisure and hospitality, and 500 in professional and business services, the industry breakdown shows.
The year-over-year pattern was similarly mixed. Construction employment was 1.5% higher than in August 2025, and education and health services was up 1.3%. Professional and business services was down 1.5%, manufacturing was down 0.8%, and trade, transportation and utilities was down 0.3%.
For workers and employers, the practical signal is that Kentucky’s labor market expanded in participation terms during August, but payroll growth remained essentially flat. The data are subject to revision, and the household-based unemployment estimates and employer payroll estimates measure different populations. The next state employment report, covering September, is scheduled for October 20.