The annual unemployment rate for Kentucky in 2025 came in higher than 39 other states.
The Kentucky Center for Statistics says the state’s annual unemployment average for 2025 was 4.6 percent. That comes in higher than the U.S. annual unemployment rate of 4.3 percent. Kentucky, along with Illinois and Ohio, tied for the highest annual unemployment rate among surrounding states. California posted the highest rate at 5.5 percent while South Dakota had the lowest at 2.1 percent.
The U.S. Bureau of Labor Statistics estimates that Kentucky’s total civilian labor force in 2025 was 2,115,589. The BLS noted that estimates are not comparable to previous years due to no data being collected in October because of the government shutdown.
Data shows expansion was seen in the Private Educational and Health Services, Government, and Financial Activities sectors in 2025. Declines were seen in the Other Services, Leisure and Hospitality, Information, Professional and Business Services, Mining and Logging, Construction, Manufacturing, and Trade, Transportation, and Utilities sectors.
The Kentucky Center for Statistics says unemployment statistics are based on estimates and measure trends rather than actually tracking the number of people working, and the numbers do not include unemployed Kentuckians who are not actively looking for work. Learn more about labor market information at kystats.ky.gov.
