STATE ECONOMIC PROFILE
Kentucky Economic Overview
$233.7b
GROSS STATE PRODUCT
Growth Rate 2020-25
State Growth Rank
2.6%
35
4,618,096
POPULATION
Growth Rate 2020-25
State Growth Rank
0.5%
28
336,080
BUSINESSES
Growth Rate 2020-25
State Growth Rank
2.6%
32
Overview of the Kentucky Economy
In 2025, the state of Kentucky has a population of 4,618,096, having grown an annualized 0.5% over the five years to 2025, which ranks it 28th out of all 50 US states by growth rate. Kentucky's gross state product (GSP) in 2025 reached $233.7b, with growth of 2.6% over the 5 years to 2025. Businesses in Kentucky employed a total of 1,953,679 people in 2025, with average annual employment growth over the past five years of 2.4%. The top three sectors by total employment are Manufacturing, Real Estate and Rental and Leasing, Healthcare and Social Assistance, while the unemployment rate across the state in 2025 was 5.2%.
What is Kentucky's Gross Domestic Product (GDP)?
In 2025, Kentucky's GDP reached $233.7b, representing an increase of 2.6% from 2024. Kentucky's GDP has grown at an annualized rate of 2.1% over the five years to 2025. Moreover, Kentucky's trailing five-year GDP growth ranks it 35th out of all 50 US states.
State GDP, or Gross State Product, is a measurement of a state's output, or the sum of value added from all industries in the state. It is a common indicator used to track the health of a state's economy.
You can track trends in Kentucky's GDP, and compare them to the national average, using the chart below.
STATE ECONOMIC PROFILE
Kentucky Industry Trends
What are Kentucky's Largest Industries by Revenue?
The largest industries by revenue in Kentucky are Health & Medical Insurance, Automobile & Light Duty Motor Vehicle Manufacturing and Hospitals, which generated $43.9b, $34.9b and $23.1b in 2025.
STATE ECONOMIC PROFILE
Top Companies in Kentucky
Top 10 Companies Headquartered in Kentucky by Employment
The largest companies by employment in Kentucky are State of Kentucky, Walmart Inc. and Norton Healthcare, which employed 79,485, 31,758 and 23,000 people in 2025.
STATE ECONOMIC PROFILE
Kentucky Sector Statistics
In Kentucky, certain sectors drive a higher share of state GDP and employ more workers than others. However, simply looking at raw numbers doesn't always tell the whole story. Factoring in the current year growth percentage, in addition to the annualized growth percentage over the past five years, will give you a deeper understanding of the economic situation.
What is Kentucky's GDP by Sector?
The Manufacturing, Real Estate and Rental and Leasing and Healthcare and Social Assistance sectors contributed the most to Kentucky's GDP in 2025, representing a combined 43.0% of state GDP.
GDP trends by sector are an important indicator of which sectors are contributing the most value-add to the state's economy, in addition to how the state economy is evolving over time.
What is Kentucky's Employment by Sector?
The Retail Trade, Healthcare and Social Assistance and Manufacturing sectors contributed the most to employment in Kentucky in 2025, representing a combined 43.5% of state employment.
Employment trends by sector are an important indicator of which sectors are growing or contracting most rapidly relative to the state economy as a whole.
STATE ECONOMIC PROFILE
Kentucky Employment Trends
2.0m
EMPLOYMENT
Growth Rate 2020-25
State Growth Rank
0.9%
12
5.2%
UNEMPLOYMENT
Growth Rate 2020-25
State Growth Rank
-4.2%
9
What Employment Trends are Impacting Kentucky?
The state of Kentucky employs 1,953,679 people in 2025, which ranks it 29th out of all 50 US states. Employment in Kentucky has grown at an annualized rate of 0.9% over the five years to 2025, underperforming the national average of 2.0%. Major sectors by employment in Kentucky include Retail Trade, Healthcare and Social Assistance and Manufacturing, which employed 305,494, 294,967 and 248,608 people in 2025, respectively. Kentucky's unemployment rate is 5.2% in 2025, which ranks it 45th out of 50 states. Kentucky's unemployment rate has trended downwards at a rate of -4.2% over the five years to 2025, overperforming the US economy as a whole. Employment trends indicate the degree of tightness or slack in labor markets, in addition to the overall strength of an economy. Faster employment growth typically indicates a strong and growing economy, while lower unemployment tends to imply tightness in labor markets.
You can track unemployment trends in Kentucky, and compare them to the US economy, using the chart below.
$91.8k
PER CAPITA DISPOSABLE INCOME
Growth Rate 2020-25
State Growth Rank
6.4
42
What is Kentucky's Per Capita Disposable Income?
Per capita disposable income, also known as disposable personal income (DPI), is the amount of money that the average person in an economy has available for spending and saving after accounting for income taxes. Kentucky's DPI in 2025 was $91.8k, compared to the US average of $143.7k, which places it 42nd out of all 50 US states.
Disposable income is regarded as a key economic indicator as trends in disposable income are indicative of the level of aggregate demand, the state of labor markets and the financial strength of households.
You can track trends in Kentucky's per capita disposable income, and compare it to the US average, using the chart below.
STATE ECONOMIC PROFILE
Kentucky Construction & Building Trends
$11,881.8tn
NONRESIDENTIAL CONSTRUCTION
Growth Rate 2020-25
State Growth Rank
15.1%
38
$3.5tn
RESIDENTIAL CONSTRUCTION
Growth Rate 2020-25
State Growth Rank
7.8%
38
15,478
BUILDING PERMITS
Growth Rate 2020-25
State Growth Rank
3.9%
43
What can construction trends tell you about a state’s economy?
In Kentucky, non-residential construction was $11,881.8tn in 2025, which ranks it 38th out of all US states. Residential construction was $3.5tn in 2025, which places Kentucky 38th in the United States. The number of building permits issued in Kentucky in 2025 was 15,478, representing a 3.9% annualized growth rate between 2020 and 2025.
Trends in the construction sector are important because it creates jobs, income and tax revenue for a state. In addition, construction sector activity impacts other sectors in its supply chain, including manufacturing, wholesaling, warehousing, transportation, and real estate, rental and leasing services. Therefore, construction trends are important indicators of the health of an economy.
You can track trends in the number of building permits issued in Kentucky, and compare it to trends in the number issued in the United States as a whole, using the chart below.
STATE ECONOMIC PROFILE
Kentucky Population Statistics
Which Counties in Kentucky have the Largest Populations?
The counties with the highest populations in Kentucky are Jefferson County, Fayette County and Kenton County, which had populations of 767,974, 319,559 and 172,952 people in 2025.
STATE ECONOMIC PROFILE
Kentucky Demographics
Education Level Kentucky
Race in Kentucky
Kentucky State Industry Reports
IBISWorld State Industry Reports help you quickly understand how an industry performs at the state level compared with the national level by providing accurate and unbiased industry information with a local focus. Use this collection to:
- Discover key local industry trends
- Identify threats and opportunities at the subnational level
- Inform your business strategies and planning
See our list of 644 Kentucky Industry Reports.
