Business and the Economy
Kentucky Unemployment Rate Decreases
Kentucky’s seasonally adjusted preliminary unemployment rate continued to fall going from 9.6 percent in June to 9.5 percent in July, according to the Office of Employment and Training. The preliminary July 2011 jobless rate dropped .7 percentage point below the 10.2 percent rate recorded in July 2010 for the state. The state’s July 2011 rate is the lowest since the January 2009 rate of 9.2 percent.
“Kentucky’s economy continued to show signs of improvement in July 2011 as the unemployment rate dropped to 9.5 percent and nonfarm employment reached its highest level since December 2008. However, a decline in the civilian labor force compounded the decrease in the unemployment rate. Individuals who have faced long-term unemployment are becoming discouraged and dropping out of the labor force,” Dr. Justine Detzel, OET chief labor market analyst, said in a press release.
The U.S. seasonally adjusted jobless rate decreased from 9.2 percent in June 2011 to 9.1 percent in July 2011, according to the U.S. Department of Labor.
Unemployment statistics are based on estimates and are compiled to measure trends rather than actually to count people working.
According to the seasonally adjusted employment data, Kentucky’s professional and business services sector surged by 4,800 positions in July 2011. This area includes professional, scientific and technical services; management of companies; and administrative support and waste management, including temporary help agencies. Since last July, jobs in the sector have mushroomed by 10,600.
“The job gains in July 2011 are clustered at administrative and support enterprises, which is indicative of expansions at a call center and a technical support center and the openings of several data centers and a call center,” said Detzel.
The manufacturing sector surged in July adding 2,800 jobs since June. Since July 2010, employment in the manufacturing sector has climbed by 6,800 positions.
“The number of industrial workers has increased eight times in the past 12 months. Job gains are attributed to the durable goods subsector, which reflects expansions at automobile parts plants, a construction crane producer and an appliance manufacturer,” said Detzel.
The information sector maintained the same number of workers in July 2011 as June 2011. This segment, which includes firms involved in publishing, Internet activities, data processing, broadcasting and news syndication, has increased by 100 positions since July 2010.
Kentucky’s construction sector jobs plummeted by 1,300 in July 2011. Since July 2010, employment in the construction sector has dropped by 3,300 jobs.
The U.S. Bureau of Labor Statistics’ monthly estimate of the number of employed Kentuckians for July 2011 was 1,903,255 on a seasonally adjusted basis. This figure is down 9,042 from the 1,912,297 employed in June 2011, but up 38,224 from the 1,865,031 employed in July 2010.