Clay City is a very small city located in the state of Kentucky. With a population of 1,188 people and two associated neighborhoods, Clay City is the 244th largest community in Kentucky.

Telecommuters are a relatively large percentage of the workforce: 8.26% of people work from home. While this number may seem small overall, as a fraction of the total workforce it is high relative to the nation. These workers are often telecommuters who work in knowledge-based, white-collar professions. For example, Silicon Valley has large numbers of people who telecommute. Other at-home workers may be self-employed people who operate small businesses out of their homes.

As is often the case in a small city, Clay City doesn't have a public transportation system that people use for their commute.

In terms of college education, Clay City ranks among the least educated cities in the nation, as only 5.28% of people over 25 have a bachelor's degree or advanced degree.

The per capita income in Clay City in 2022 was $15,078, which is low income relative to Kentucky and the nation. This equates to an annual income of $60,312 for a family of four. Clay City also has one of the higher rates of people living in poverty in the nation, with 47.69% of its population below the federal poverty line.

Clay City is a somewhat ethnically-diverse city. The people who call Clay City home describe themselves as belonging to a variety of racial and ethnic groups. The greatest number of Clay City residents report their race to be White. Clay City also has a sizeable Hispanic population (people of Hispanic origin can be of any race). People of Hispanic or Latino origin account for 11.61% of the city’s residents. Important ancestries of people in Clay City include English, Irish, German, Italian, and European.

The most common language spoken in Clay City is English. Other important languages spoken here include Italian and Armenian.