Unemployment rates declined across most of Kentucky in July compared with a year earlier, reflecting broad improvements in the labor market despite a statewide rate that remained steady, according to data from the Kentucky Center for Statistics.

Jobless rates fell in 87 of Kentucky's 120 counties in July compared with July 2025, while rates increased in 18 counties and remained unchanged in 15. Cumberland and Woodford counties posted the state's lowest unemployment rates at 4.1% each, followed by Campbell County at 4.2%. Fayette County, along with Boone, Kenton and Scott counties, each recorded rates of 4.3%.

At the opposite end of the spectrum, Martin County recorded Kentucky's highest unemployment rate at 10.1%, followed by Wolfe County at 9.5%, Lewis County at 9%, Elliott County at 8.9% and Magoffin County at 8.4%. Eastern Kentucky counties dominated the list of highest unemployment rates, reflecting longstanding regional economic challenges.

Kentucky's seasonally adjusted statewide unemployment rate held steady at 4.7% in July. The county figures differ because they are not seasonally adjusted due to small sample sizes, making them more prone to fluctuations from seasonal factors including weather, harvests, holidays and school schedules.

The mixed picture at the state level reflects modest labor market activity. Kentucky was among 48 states where nonfarm payroll employment remained essentially unchanged from June to July, signaling limited job creation across most of the country during the period.

County employment data is compiled to measure trends rather than provide an actual count of workers. The labor force figures include unemployed Kentuckians actively seeking work but exclude those who have not looked for employment during the previous four weeks.