Lowest unemployment rates in Kentucky revealed in KYSTATS latest jobs report, with Boone and Campbell counties among the leaders
Kentucky's County and Statewide Unemployment Rates: An Overview
Kentucky's county unemployment rates are not seasonally adjusted due to small sample sizes at the county level, making them subject to short-term seasonal variability. In contrast, the statewide unemployment rates are seasonally adjusted, providing a clearer picture of broader employment trends.
County Unemployment Rates
The lack of seasonal adjustment in county unemployment data affects the interpretation of unemployment trends. For instance, unemployment may temporarily spike due to harvest season ending or school breaks without indicating a true worsening of local labor market conditions. It is recommended to compare county unemployment data month-to-month carefully, preferably against the same month in previous years to account for these seasonal effects.
The county with the highest unemployment rate in Kentucky was Martin County at 9.5%, while Oldham, Shelby, and Woodford counties recorded the lowest jobless rates at 4% each. Other counties with high unemployment rates included Lewis County (8.8%), Magoffin County (9.1%), Wolfe County (8%), Harlan and Jackson counties (7.5% each), Lawrence County (7.4%), Carter County (7.9%), and Elliott County (8.6%).
Statewide Unemployment Rates
Kentucky's seasonally adjusted June 2025 unemployment rate fell from 5% in May 2025 to 4.9% in June 2025. This decrease was observed in 115 counties in Kentucky between June 2024 and June 2025. However, four counties experienced an increase in unemployment rates during the same period.
For more detailed information about Kentucky labor market statistics, visit kystats.ky.gov.
Comparing County and Statewide Unemployment Rates
Comparing county unemployment rates to the same month in previous years is recommended to account for seasonal fluctuations. On the other hand, month-to-month and year-to-year comparisons are reliable for understanding employment trends at the state level due to the larger sample size and seasonal adjustment.
| Aspect | County Unemployment Rates | Statewide Unemployment Rates | |-----------------------------|-------------------------------------------|---------------------------------------------| | Seasonal Adjustment | Not adjusted | Seasonally adjusted | | Reason | Small sample sizes; statistical unreliability | Larger sample size enables reliable adjustment | | Effect on trend interpretation | Subject to seasonal fluctuation; harder to discern underlying trends | Easier to identify real employment trends | | Recommended comparison approach | Compare same months year over year, watch for sharp seasonal shifts | Month-to-month and year-to-year comparisons reliable for trends |
- In Kentucky, the county with the highest unemployment rate is Martin County, whereas education and finance-oriented counties like Oldham, Shelby, and Woodford counties reported the lowest rates.
- The seasonally adjusted statewide unemployment rate in Kentucky fell from 5% in May 2025 to 4.9% in June 2025, highlighting a positive trend in the state's labor market.
- When considering county-level unemployment trends, it's essential to account for seasonal events, such as the end of harvest season or school breaks, which can temporarily impact the weather-dependent businesses and local economy.
