Are the economy and job market progressing in Central, KY? What the data shows
Lexington’s chamber of commerce says the Central Kentucky region is making progress to support job creation and increase economic growth, though movement to keep the area competitive has underscored affordability, housing, infrastructure and energy challenges.
Commerce Lexington, along with regional business and local government leaders in the nine counties surrounding Fayette, released an intermittent report for its Regional Competitiveness Plan, a five-year strategy launched in 2023.
Since the plan launched, the report said hot topics like the rapid rise of data centers, reliable energy accessibility, job-ready site availability and quality of place have shaped regional competitiveness.
Data and analysis lags, but regional partners said they are enthused by a labor force expansion of nearly 7,000 residents between 2019 and 2024 across nine counties: Bourbon, Clark, Fayette, Franklin, Jessamine, Madison, Montgomery, Scott and Woodford.
Over that same period, the region’s gross domestic product increased almost 7%, a measure of the area’s earnings through spending, investment and consumption.
The progress report — which pulls data from the U.S. Census Bureau, U.S. Bureau of Labor Statistics and the U.S. Bureau of Economic Analysis — said between 2019 and 2024, more than 20,000 jobs were added or promised across the region, with notable gains in the plan’s targeted sectors of manufacturing, especially of pharmaceuticals and as part of the automotive supply chain.
While those three years were lucrative for the region, Kentucky’s job growth has stalled since. The Kentucky Center for Economic Policy reports federal data show no net job increases in the state over the last two years.
“After a robust recovery from 2021 to 2024, the state has lost net jobs in manufacturing; construction; trade; transportation and utilities; and professional and business services over the last two years,” the progressive thing tank said. “Nearly all job growth now is in health care.”
The center’s analysis uses numbers from the same federal data sources as the competitiveness plan progress update.
Regional approach has been key to success
Cost of living in the area remains below the national average and is significantly lower than larger, nearby cities; however, the report does indicate that increasing the housing supply “will be critical to addressing rising prices and supporting continued workforce growth.”
“The data shows clear, measurable, economic progress,” said Ted Abernathy, managing partner at Economic Leadership, LLC, the company that produced the report. “... At the same time, recent progress underscores the importance of maintaining affordable energy and housing, while continuing to invest in job-ready sites and infrastructure to sustain this growth.”
The goal of the Regional Competitiveness Plan is to increase economic growth through investment in targeted talent marketing efforts, leadership development for the region’s economic development staff and advocacy for state and local policy change that improves the business climate and infrastructure to support it.
The report celebrated significant progress the region has made since the plan launched on job-ready sites and increasing capacity for development. Since 2022, the report said more than 18 projects have received local and state funding, including Lexington’s Legacy Business Park and the Central Kentucky Business Park Authority.
Outgoing Commerce Lex President and CEO Bob Quick said success in the report is rooted in the longstanding relationships local officials, economic development staff and business leaders have built for three decades.
“That history of shared ideas and information made it easier to implement the regional plan,” he said. “Collaboration is a powerful tool in economic development and talent attraction. By marketing our region’s assets together, we can compete with much larger metros. Simply put, we are better together.”
Other takeaways from the report
So far, the plan has produced a number of outputs economic development leaders said are working to double down on adding jobs and improving economic and business growth.
Last year, a talent attraction website and marketing campaign launched to highlight the region’s assets and opportunities. The website included a cost-of-living calculator, job board and employer resource hub while the campaign targeted recent graduates of local colleges and universities.
A second website and marketing campaign was launched in 2025 specifically to advertise the region as a destination for key industry sectors local leaders believe to be already an asset, including manufacturing and biotechnology.
In addition, the report said Commerce Lexington spent 2025 strengthening its direct engagement with site selectors through participation in more than 10 industry conferences, hosting targeted networking events and building on existing relationships with more than 130 site selectors.
Advocacy efforts by the region during this year’s legislative session resulted in state investment in the Kentucky Product Development Initiative, a program through the Cabinet for Economic Development that provides matching grants for site preparation, infrastructure projects, real estate purchases and more in an effort to attract new business and create jobs.
The Kentucky General Assembly also allocated money to the Blue Grass Airport for a terminal expansion, remodel and the relocation of its air traffic control tower.
In addition, legislators set aside money for the Central Kentucky Business Park Authority as Lexington works with Madison and Scott counties to build an industrial park in Berea.
That city’s mayor, Bruce Farley, who also serves as board chair for Greater Lex Inc., said he was pleased with the progress of the regional plan, and it’s been “an honor” to work with Lexington Mayor Linda Gorton, Scott County Judge-Executive Joe Pat Covington and Madison County Judge-Executive Reagan Taylor.
“We can achieve so much more when we collaborate as a region,” he said. “Because it makes us more competitive for jobs and talent.”
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