Kentucky's labor market remained essentially flat in July even as the national hiring environment cooled, according to data from the U.S. Bureau of Labor Statistics released Friday, as reported by The Lane Report. Kentucky was among 48 states where nonfarm payroll employment saw virtually no change from June to July, reflecting a broader slowdown in job creation across the country.

The commonwealth's unemployment rate held steady at 4.7 percent in July, unchanged from the previous month but up slightly from 4.6 percent a year earlier, according to the Kentucky Center for Statistics. Nationally, the jobless rate stood at 4.1 percent, little changed from the prior month. Only Maryland posted statistically significant job growth with 11,700 new positions, while New Jersey reported the steepest decline with 25,600 job losses.

The mixed results underscore how Kentucky's labor market has stabilized without experiencing the robust job growth that characterized the earlier part of the decade. Only six states nationwide recorded significant year-over-year payroll increases, with Texas leading at 165,600 new jobs, followed by California with 112,700 and North Carolina with 51,600. Kentucky was among 43 states showing no statistically significant employment change over the past year.

The report highlighted how several neighboring states outperformed Kentucky. Ohio's unemployment rate fell to 3.4 percent in July from 3.6 percent in June, with a dramatic 1.1-percentage-point improvement over the past year. Tennessee also reported a 3.4 percent unemployment rate, both below the national average. The improvements in those states stand in contrast to Kentucky's flat employment picture.

Employment gains in Kentucky were concentrated in manufacturing and other sectors, though the overall growth was modest. The state's civilian labor force grew to 2.1 million in July, with both employment and job-seeking activity ticking upward, marking the first month of 2026 with an increase in the number of employed Kentuckians.

The Bureau of Labor Statistics is scheduled to release preliminary benchmark revisions to state payroll employment estimates Aug. 28, which could alter previously reported figures. The next full state employment and unemployment report is set for Sept. 18.