Kentucky's Education and Workforce Cabinet released county unemployment data for January 2026, showing improved conditions across all 120 counties in the state.

Woodford County recorded the lowest jobless rate in the commonwealth at 3.2%, followed by Todd County at 3.3% and Fayette County at 3.5%. The Lexington area's strong performance reflects a broader trend of economic improvement in the Bluegrass region.

Unemployment rates fell in all 120 counties between January 2025 and January 2026, according to the Kentucky Center for Statistics, an agency within the Kentucky Education and Labor Cabinet. All Kentucky counties posted lower unemployment rates compared to a year earlier.

Franklin County, home to the state capital, posted a 3.8% unemployment rate in January, which is 1.2% lower than the same month last year. Other regional counties with strong employment markets included Jessamine and Scott counties at 3.6% each, and Bourbon, Campbell, Graves, Harrison, Kenton and Oldham counties at 3.7% each.

Statewide, Kentucky's seasonally adjusted January 2026 unemployment rate was 4.3%, down 0.1 percentage points from December of 2025 and down 0.5 percentage points from one year ago. The U.S. seasonally adjusted jobless rate for January 2026 was also 4.3%.

Wolfe County recorded the state's highest unemployment rate at 10.3%, underscoring the continued economic disparities between Kentucky's urban and rural areas. Woodford County's economy is anchored by health care and social assistance, educational services, and manufacturing, contributing to its strong employment picture.

County unemployment rates are not seasonally adjusted because of small sample sizes. Kentucky's civilian labor force was 2,114,515 in January 2026, with 2,024,289 employed.