State officials say Kentucky's unemployment rate dropped to 4.9 percent last month, matching the national jobless rate.
The state Office of Employment and Training says July's seasonally adjusted rate was down from a revised 5 percent rate in June.
Last month's preliminary rate was down from the 5.3 percent statewide rate in July 2015.
Manoj Shanker, an economist with the agency, says the last time Kentucky's unemployment rate dipped below 5 percent was in May 2001.
The agency says Kentucky's manufacturing sector jumped by 2,300 jobs in July compared to the prior month. Since July 2015, employment in manufacturing has increased by 4,300.
The financial activities sector also showed strong growth, expanding by 1,700 jobs in July from a month ago. The sector has added 4,500 jobs since July 2015.