Kentucky's seasonally adjusted preliminary unemployment rate for August rose to 6.8 percent from July's revised 6.7 percent and is up from 5.5 percent a year ago.
The jobless rate was released Tuesday by the Office of Employment and Training, an agency of the Kentucky Education and Workforce Development Cabinet.
The U.S. seasonally adjusted jobless rate rose to 6.1 percent in August 2008 from 5.7 percent in July, said the U.S. Department of Labor.
Unemployment statistics are based on estimates and are compiled to measure trends rather than actually counting people working.
"The unemployment rate in Kentucky continued to rise amid tighter credit, mounting jobs losses, and caution among businesses and consumers," said Justine Detzel, chief labor market analyst for the Office of Employment and Training.
Detzel said a manufacturing slump has "rippled through Kentucky's economy."
While job losses were concentrated in the manufacturing sector, the number of jobs in the professional and business services sector also fell, as did jobs in the finance, information, construction and the trade, transportation and utilities sectors.
A decrease of 5,800 jobs in August brought Kentucky's non-farm employment to a seasonally adjusted total of 1,878,800. Because of increases in other sectors, however, the state's non-farm employment has risen by 10,400 since August 2007.