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US State economic profile
Kentucky - Economic Profile
Statistics, economic information and rankings for the Bluegrass State
In 2026, the state of Kentucky has a population of 4,647,947, having grown an annualized 0.6% over the five years to 2026, which ranks it 25th out of all 50 US states by growth rate. Kentucky's gross state product (GSP) in 2026 reached $233.9b, with growth of 1.6% over the 5 years to 2026. Businesses in Kentucky employed a total of 2,007,279 people in 2026, with average annual employment growth over the past five years of 1.8%. The top three sectors by total employment are Manufacturing, Real Estate & Rental & Leasing, Healthcare & Social Assistance, while the unemployment rate across the state in 2026 was 5.1%.
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State economic profile
Kentucky Economic Overview
$233.9b
Gross state product
4,647,947
Population
356,446
Businesses
What is Kentucky's Gross Domestic Product (GDP)?
In 2026, Kentucky's GDP reached $233.9b, representing an increase of 1.6% from 2025. Kentucky's GDP has grown at an annualized rate of 1.1% over the five years to 2026. 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
Learn about current trends affecting the most significant industries for Kentucky's state economy, down to the county level. IBISWorld offers state industry research reports on over 30,000 industries across all 50 states in the US, including 635 industries in Kentucky.
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 Automobile Wholesaling, which generated $61.0b, $31.8b and $24.3b in 2026.
| Industry | 2026 revenue | |
|---|---|---|
| 1. | Health & Medical Insurance | $61.0b |
| 2. | Automobile & Light Duty Motor Vehicle Manufacturing | $31.8b |
| 3. | Automobile Wholesaling | $24.3b |
| 4. | Hospitals | $20.5b |
| 5. | Gasoline & Petroleum Bulk Stations | $17.5b |
| 6. | New Car Dealers | $13.5b |
| 7. | Commercial Banking | $13.3b |
| 8. | Drug, Cosmetic & Toiletry Wholesaling | $11.0b |
| 9. | Supermarkets & Grocery Stores | $10.0b |
| 10. | Petroleum Refining | $9.7b |
State economic profile
Top Companies in Kentucky
Learn about current trends affecting the top companies in Kentucky. IBISWorld offers benchmarking data and tools on over 5,000 companies in the US.
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, 31,357 and 23,000 people in 2026.
| Company | 2026 employment | Share of employment | |
|---|---|---|---|
| 1. | State of Kentucky | 79,485 | 4.0% |
| 2. | Walmart Inc. | 31,357 | 1.6% |
| 3. | Norton Healthcare | 23,000 | 1.1% |
| 4. | Amazon.Com, Inc. | 22,000 | 1.1% |
| 5. | The Kroger Co. | 19,391 | 1.0% |
| 6. | United Parcel Service, Inc. | 19,000 | 0.9% |
| 7. | University of Louisville Health | 14,000 | 0.7% |
| 8. | University Of Kentucky | 13,500 | 0.7% |
| 9. | Humana Inc. | 10,000 | 0.5% |
| 10. | Ford Motor Co | 9,201 | 0.5% |
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 & Rental & Leasing and Healthcare & Social Assistance sectors contributed the most to Kentucky's GDP in 2026, representing a combined 42.9% of state GDP.
GDP trends by sector are an important indicator of which sectors are contributing the most value-add to the state economy, in addition to how the state economy is evolving over time.
| Sector | GDP | Growth 2026 | Annualized growth 2021-26 |
|---|---|---|---|
| Manufacturing | 37,939,764,373 | 0.1% | 0.3% |
| Real Estate & Rental & Leasing | 28,442,365,339 | 3.6% | 3.8% |
| Healthcare & Social Assistance | 25,082,122,302 | 4.6% | 4.8% |
| Retail Trade | 16,163,775,667 | 4.6% | 4.0% |
| Wholesale Trade | 14,394,821,659 | -0.7% | -0.8% |
| Professional, Scientific & Technical Services | 14,102,886,440 | 6.9% | 7.3% |
| Finance & Insurance | 12,279,055,113 | 0.8% | 0.4% |
| Transportation & Warehousing | 11,533,981,197 | 0.8% | -0.2% |
| Administration, Business Support and Waste Management Services | 8,205,055,370 | 2.9% | 3.0% |
| Construction | 7,699,807,308 | -0.2% | -0.6% |
| Accommodation & Food Services | 7,677,683,289 | 3.9% | 3.1% |
| Information | 7,531,572,223 | 5.0% | 4.7% |
| Management of Companies and Enterprises | 4,923,326,516 | 7.5% | 8.0% |
| Utilities | 4,187,624,677 | 2.1% | 2.3% |
| Other Services (except Public Administration) | 4,145,326,962 | -1.7% | -1.4% |
| Agriculture, Forestry, Fishing & Hunting | 3,117,789,706 | 0.8% | -0.1% |
| Mining | 2,357,983,894 | 6.3% | 9.1% |
| Arts, Entertainment & Recreation | 2,042,210,226 | 11.5% | 13.1% |
| Educational Services | 1,452,821,940 | 1.5% | 1.8% |
What is Kentucky's Employment by Sector?
The Healthcare & Social Assistance, Retail Trade and Manufacturing sectors contributed the most to employment in Kentucky in 2026, representing a combined 42.4% 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.
| Sector | Employment | Growth 2026 | Annualized growth 2021-26 |
|---|---|---|---|
| Healthcare & Social Assistance | 301,890 | 1.2% | 2.4% |
| Retail Trade | 293,113 | 1.4% | 1.8% |
| Manufacturing | 255,670 | 0.5% | 1.4% |
| Accommodation & Food Services | 182,902 | 0.3% | 2.9% |
| Transportation & Warehousing | 146,478 | 4.1% | 4.4% |
| Administration, Business Support and Waste Management Services | 124,107 | 0.9% | -0.9% |
| Professional, Scientific & Technical Services | 109,451 | 1.3% | 1.1% |
| Construction | 106,467 | 0.9% | 1.7% |
| Educational Services | 102,793 | 0.4% | 0.7% |
| Finance & Insurance | 94,868 | 0.9% | 1.4% |
| Other Services (except Public Administration) | 80,426 | 1.1% | 2.6% |
| Wholesale Trade | 74,196 | 0.6% | 1.5% |
| Real Estate & Rental & Leasing | 42,157 | -0.6% | 1.4% |
| Information | 34,591 | 1.5% | 1.9% |
| Arts, Entertainment & Recreation | 32,598 | 1.1% | 3.2% |
| Utilities | 11,429 | 0.3% | 0.5% |
| Mining | 9,017 | 0.4% | 1.2% |
| Agriculture, Forestry, Fishing & Hunting | 5,126 | 1.0% | 1.3% |
State economic profile
Kentucky Employment Trends
2.0m
Employment
5.1%
Unemployment
What Employment Trends are Impacting Kentucky?
The state of Kentucky employs 2,007,279 people in 2026, which ranks it 29th out of all 50 US states. Employment in Kentucky has grown at an annualized rate of 1.8% over the five years to 2026, overperforming the national average of 1.7%. Major sectors by employment in Kentucky include Healthcare & Social Assistance, Retail Trade and Manufacturing, which employed 301,890, 293,113 and 255,670 people in 2026, respectively. Kentucky's unemployment rate is 5.1% in 2026, which ranks it 40th out of all 50 US states. Kentucky's unemployment rate has trended upwards at a rate of 2.7% over the five years to 2026, 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.
$96.8k
Per capita disposable income
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 2026 was $96.8k, compared to the US average of $156.5k, which places it 43rd 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
$9,311.1tn
Nonresidential construction
$3.4tn
Residential construction
14,802
Building permits
What can construction trends tell you about a state’s economy?
In Kentucky, non-residential construction was $9,311.1tn in 2026, which ranks it 23rd out of all 50 US states. Residential construction was $3.4tn in 2026, which places Kentucky 20th out of all 50 US states. The number of building permits issued in Kentucky in 2026 was 14,802, representing a -1.0% annualized growth rate between 2021 and 2026.
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 765,831, 319,250 and 173,773 people in 2026.
| Region | 2026 population | Annual growth 2021-26 | Share of population |
|---|---|---|---|
| Jefferson | 765.8k | -0.3% | 16.5% |
| Fayette | 319.3k | -0.1% | 6.9% |
| Kenton | 173.8k | 0.5% | 3.7% |
| Warren | 149.3k | 1.6% | 3.2% |
| Boone | 144.8k | 1.0% | 3.1% |
| Hardin | 113.6k | 0.4% | 2.4% |
| Daviess | 104.0k | 0.2% | 2.2% |
| Madison | 101.0k | 1.4% | 2.2% |
| Campbell | 94.6k | 0.3% | 2.0% |
| Bullitt | 87.5k | 1.0% | 1.9% |
| Oldham | 72.6k | 1.1% | 1.6% |
| Christian | 71.2k | -0.4% | 1.5% |
| Mccracken | 67.3k | N/A | 1.4% |
| Pulaski | 67.3k | 0.5% | 1.4% |
| Laurel | 64.2k | 0.5% | 1.4% |
| Scott | 63.2k | 1.6% | 1.4% |
| Jessamine | 57.0k | 1.2% | 1.2% |
| Pike | 54.1k | -1.1% | 1.2% |
| Franklin | 51.8k | 0.1% | 1.1% |
| Shelby | 51.1k | 1.0% | 1.1% |
| Nelson | 48.7k | 0.7% | 1.1% |
| Boyd | 47.5k | -0.2% | 1.0% |
| Barren | 45.5k | 0.4% | 1.0% |
| Hopkins | 44.6k | -0.2% | 1.0% |
| Henderson | 43.7k | -0.3% | 0.9% |
State economic profile
Kentucky Demographics
In Kentucky, 28.3% of the population has a Bachelors or higher. The largest ethnic group in Kentucky is White, accounting for 79.9% of the state's population.
Education level in Kentucky
| Education level | Share (%) |
|---|---|
| Bachelors or higher | 28.3 |
| Other | 71.7 |
Race in Kentucky
| Race | Share (%) |
|---|---|
| White | 79.9 |
| Black | 8.7 |
| Hispanic | 6.5 |
| Other | 2.7 |
| Asian | 2.3 |
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, with 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 635 Kentucky industry reports.
Other states to explore
Compare Kentucky’s economy with other states in the United States.
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