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Lexington, Kentucky: Immigrants Play Vital Role in State’s Economy

Diverse immigrant workforce in Kentucky participating in various economic activities.

Lexington, Kentucky, November 19, 2025

Immigrants in Kentucky significantly contribute to the state’s economy, holding essential positions across various sectors. They make up 6% of the labor force, with a notable participation rate of 69%, and are heavily involved in agriculture, manufacturing, and the equine industry. Their contributions extend to entrepreneurship, with over 10,600 immigrant-owned businesses, and they contribute $37 million annually in state and local taxes, supporting Kentucky’s economic growth and prosperity.

Lexington, Kentucky: Immigrants Play Vital Role in State’s Economy

Immigrants in Kentucky significantly contribute to the state’s economy, holding essential positions across various sectors.

Key Contributions

  • Labor Force Participation: Immigrants make up 6% of Kentucky’s labor force, with a participation rate of 69%, surpassing the native-born rate of 60%.
  • Entrepreneurship: Over 10,600 immigrants own businesses, employing more than 35,000 Kentuckians.
  • Tax Contributions: Immigrants pay $37 million in state and local taxes annually, with an effective tax rate of 7.1%, higher than the wealthiest 1% of Kentuckians.
  • Industry Employment: Immigrants hold 22% of jobs in Kentucky’s animal production sector, contributing to the state’s livestock industry, which generated over $1 billion in farm receipts from cattle and calves in 2014.

Impact on Key Industries

Immigrants are integral to several critical industries in Kentucky:

  • Agriculture: They play a crucial role in planting, harvesting, and processing crops such as tobacco, corn, and soybeans.
  • Manufacturing: Immigrants are vital in sectors like automotive and food processing, filling essential roles in production and packaging.
  • Equine Industry: In the thoroughbred industry, immigrants constitute 80-90% of farm workers, with approximately 5,000 immigrant workers employed across 460-500 farms.

Conclusion

Immigrants are a cornerstone of Kentucky’s economy, providing essential labor, driving entrepreneurship, and contributing significantly to the state’s tax revenue. Their presence is vital for the continued growth and prosperity of Kentucky’s diverse industries.

Frequently Asked Questions (FAQ)

1. What percentage of Kentucky’s labor force is made up of immigrants?

Immigrants make up 6% of Kentucky’s labor force, with a participation rate of 69%, surpassing the native-born rate of 60%.

2. How many businesses are owned by immigrants in Kentucky?

Over 10,600 immigrants own businesses, employing more than 35,000 Kentuckians.

3. What is the annual tax contribution of immigrants in Kentucky?

Immigrants pay $37 million in state and local taxes annually, with an effective tax rate of 7.1%, higher than the wealthiest 1% of Kentuckians.

4. Which industries in Kentucky rely heavily on immigrant labor?

Immigrants are integral to several critical industries in Kentucky, including agriculture, manufacturing, and the equine industry.

5. How significant is the immigrant workforce in Kentucky’s equine industry?

In the thoroughbred industry, immigrants constitute 80-90% of farm workers, with approximately 5,000 immigrant workers employed across 460-500 farms.

Key Features of Kentucky’s Immigrant Workforce

Feature Details
Labor Force Participation Immigrants make up 6% of Kentucky’s labor force, with a participation rate of 69%, surpassing the native-born rate of 60%.
Entrepreneurship Over 10,600 immigrants own businesses, employing more than 35,000 Kentuckians.
Tax Contributions Immigrants pay $37 million in state and local taxes annually, with an effective tax rate of 7.1%, higher than the wealthiest 1% of Kentuckians.
Industry Employment Immigrants hold 22% of jobs in Kentucky’s animal production sector, contributing to the state’s livestock industry, which generated over $1 billion in farm receipts from cattle and calves in 2014.
Agriculture Immigrants play a crucial role in planting, harvesting, and processing crops such as tobacco, corn, and soybeans.
Manufacturing Immigrants are vital in sectors like automotive and food processing, filling essential roles in production and packaging.
Equine Industry In the thoroughbred industry, immigrants constitute 80-90% of farm workers, with approximately 5,000 immigrant workers employed across 460-500 farms.

Now Happening on X

  • @RamaAsmani (November 18, 2025): Small businesses are the backbone of Lexington’s economy, representing 99.3% of employers in Kentucky, employing 42.6% of the workforce, and including over 27,000 minority-owned operations. View on X
  • @heraldleader (November 19, 2025): A specialty grocery store has announced its opening date for a second location in Lexington, expanding retail options for the community. View on X
  • @heraldleader (November 18, 2025): A new music and entertainment venue is set to open in downtown Lexington, boosting local events and cultural offerings. View on X
  • @thestate (November 18, 2025): Lexington’s landscape is transforming in 2025 with eleven major projects highlighting growth in construction and real estate. View on X
  • @RockbridgeNews (November 14, 2025): Lexington officials are working to balance the city’s historic appearance with ongoing growth through a new Comprehensive Plan focused on economic development. View on X
  • @LEX18News (November 14, 2025): A Lexington laundromat business is revolutionizing the traditional experience, making chores more efficient and appealing to customers. View on X
  • @GovAndyBeshear (November 13, 2025): Kentucky is celebrating new jobs and investments, including MRCOOL’s $5.35 million project in Graves County creating 40 jobs, Rip Technologies’ $4.3 million investment in Mt. Sterling for 46 jobs, and Ford’s $60 million expansion in Louisville adding 100 jobs. View on X

Deeper Dive: News & Info About This Topic

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STAFF HERE LEXINGTON KY STAFF
Author: STAFF HERE LEXINGTON KY STAFF

The LEXINGTON STAFF WRITER represents the experienced team at HERELexingtonKY.com, your go-to source for actionable local news and information in Lexington, Fayette County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Woodland Art Fair, Crave Food and Music Festival, and Railbird Festival. Our coverage extends to key organizations like Commerce Lexington and Blue Grass Community Foundation, plus leading businesses in education, manufacturing, and technology that power the local economy such as University of Kentucky, Toyota Motor Manufacturing, and Lexmark. As part of the broader HERE network, including HEREBowlingGreen.com and HERELouisville.com, we provide comprehensive, credible insights into Kentucky's dynamic landscape.

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