Kentucky's unemployment rate rose to 10.1 percent in September, up from 10 percent in August.
Since February 2009, the rate has been below 10 percent just once — July.
"Kentucky's economy continued to stagnate in September," said Justine Detzel, chief labor market analyst for the state Office of Employment and Training.
She noted the state during September "endured government cutbacks and layoffs at administrative and support businesses."
Though the jobless rate is up from August, it's down from 10.8 percent in September 2009. The state's unemployment rate continued to outpace the national rate of 9.6 percent.
And while the jobless rate, which measures people looking for employment, rose, Kentucky did add 1,700 jobs overall during September.
Seven of the 11 major industries that are tracked showed employment increases.
The most — 3,100 jobs — came in the leisure and hospitality sector, as consumers began to splurge on restaurant meals and other leisure activities, Detzel said in a statement.
The trade, transportation and utilities sector added 1,600 jobs, as expansions were under way at air transportation and shipping companies, Detzel said.
The state does not identify employers in releasing the monthly statistics.
The other sectors seeing gains were other services (800), financial activities (500), educational and health services (400), manufacturing (300) and mining and logging (100).
The sector with the most jobs lost was professional and business services, which shed 2,600 positions.
Reasons for the losses included the end of temporary jobs at a payroll and billing support center, as well as layoffs at an information technology and outsourcing services firm.
Other sectors losing jobs were government (2,100), construction (200) and information (200).