Decrease in Kentucky's educational sector unemployment rate according to the June 2025 report published by the Labor Cabinet
Kentucky's labor market presented a mixed picture in June 2025, with some sectors experiencing growth while others saw declines, according to the latest data from the Kentucky Center for Statistics.
The state's seasonally adjusted nonfarm employment increased by 1,500 jobs to 2,060,200 in June 2025 compared to May 2025. However, the unemployment rate for the state was higher than the national average, standing at 4.9%, compared to the U.S. preliminary unemployment rate of 4.1% for the same month.
The professional and business services sector saw a decrease of 300 jobs in June, with losses in administrative, support, and waste management. On the other hand, the professional, scientific, and technical services subsector reported a gain.
The leisure and hospitality sector remained unchanged from May to June, with the arts, entertainment, and recreation subsector adding 300 jobs, and the accommodations and food services subsector losing 300 jobs.
Employment in the government sector was down 200 jobs from May to June, but the total number of government jobs rose by 5,100 positions or 1.6% compared to June 2024.
The construction industry, which has been a bright spot in Kentucky's economy, experienced a decline of 900 jobs in June compared to May. However, construction employment was up 5,500 positions or 5.9% from one year ago.
The mining and logging sector reported a decrease of 100 jobs in June and had 700 fewer jobs compared to June 2024.
The educational and health services sector reported 1,500 more jobs in June 2025. The number of unemployed decreased by 3,269 to 103,060.
The manufacturing sector declined 800 jobs from May to June, with losses evenly distributed across durable and nondurable goods manufacturing. Conversely, the trade, transportation, and utilities sector increased by 1,500 positions from May to June.
The number of people employed in June increased by 2,567 to 2,015,949. The civilian labor force was 2,119,009 in June 2025, a decrease of 702 individuals from May 2025.
The information sector has seen little change from mid-2024 to mid-2025.
The University of Kentucky’s Center for Business and Economic Research (CBER) has identified a potential cooling trend in Kentucky’s labor force growth, primarily due to economic uncertainty leading to hesitancy among employers, particularly in construction and development sectors. This caution is driven by concerns that the economy might weaken later in 2025 and into 2026, causing builders and developers to delay expansion or hiring plans.
For more information about Kentucky labor market statistics, visit the Kentucky Center for Statistics website.
- The government sector's employment decreased in June 2025, but the total number of government jobs increased compared to the previous year.
- Despite a decrease in jobs, the professional and business services sector's growth was partially offset by gains in the professional, scientific, and technical services subsector.
- The leisure and hospitality sector remained stable in June 2025, with the arts, entertainment, and recreation subsector adding jobs, while the accommodations and food services subsector saw a decline.
- The construction industry, a bright spot in Kentucky's economy, experienced a contraction in June 2025 but has seen an overall increase in employment compared to the previous year.
- The mining and logging sector reported a decrease in jobs for June 2025 and had fewer jobs compared to the same month the previous year.
- The educational and health services sector added jobs in June 2025, and the number of unemployed decreased during the same period. Additionally, the University of Kentucky's Center for Business and Economic Research (CBER) forecasts a potential slowdown in labor force growth due to economic uncertainty in construction and development sectors.
To gather more insights about Kentucky's labor market statistics, visit the Kentucky Center for Statistics website.
