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Kentucky's jobless rate up slightly in March


Kim Saylor Brannock
502) 564-6606 ext. 130
KimS.Brannock@ky.gov

FRANKFORT, Ky. (April 28, 2005) - Kentucky's seasonally adjusted preliminaryunemployment rate increased slightly from 5.2 percent in February 2005 to5.3 percent in March 2005, according to the Office of Employment andTraining, an agency of the Education Cabinet. The March 2005 rate was belowMarch 2004's jobless rate of 5.7 percent.


The U.S. seasonally adjusted March jobless rate fell to 5.2 percent from 5.4percent in February 2005, according to the U.S. Department of Labor."March was the second consecutive month that both employment and theunemployment rate rose. A probable explanation is that many unemployedindividuals who had not looked for work in recent months have beenencouraged by the improvement in the economy and have resumed their jobsearch activities," said Carlos Cracraft, the department's chief labormarket analyst.

Civilian labor force figures do not include people who have not activelysought employment within the past four weeks."Kentucky's jobless rate of 5.3 percent ranked as the 34th lowest among allstates in March with one other state having the same unemployment rate asKentucky's," he said.

Seven of the 10 major nonfarm job North American Industry ClassificationSystem (NAICS) sectors had employment increases in March, while threedecreased, Cracraft said. A monthly survey of business establishmentsrevealed that Kentucky's nonfarm employment jumped by 3,500 on a seasonallyadjusted basis to 1,807,100 in March. Since March 2004, nonfarm employmenthas gone up 14,400.

According to the seasonally adjusted employment data, the state's leisureand hospitality sector recorded the largest employment jump with 1,400 morejobs in March 2005. Since March 2004, the sector's employment has grown by4,800 employees. The sector includes arts, entertainment, recreation,accommodations and food services and drinking places industries.

The construction sector gained 1,000 jobs in March 2005. Since March 2004,employment in this sector has risen by 3,400. "The construction sectorcontinues to be a bright spot in our labor market. March marked the sixthconsecutive month that the construction sector in Kentucky has addedemployment," said Cracraft.

The state's manufacturing sector grew by 800 jobs in March. Compared toMarch 2004, the sector had 1,000 more employees in March 2005. Kentucky's professional and business services sector employment went up by700 employees from February 2005 to March 2005. This sector recorded 6,000more employees in March 2005 than March 2004.

Employment in the other services sector, which includes such establishmentsas repair and maintenance places, personal and laundry services, religiousorganizations, and civic and professional organizations, increased by 500jobs from February 2005 to March 2005. Over the past 12 months, the sectorhas added 600 positions.

The trade, transportation and utilities sector recorded 100 more workers inMarch. This sector includes retail and wholesale trade, transportation andutilities businesses, and warehousing, and is the largest sector in Kentuckywith 372,700 employees. Since March 2004, the number of jobs in this sectorhas increased by 500.

"The trade, transportation and utilities sector has had alternating monthsof employment gains and losses the past five months but is still ahead ofthis time last year. The over-the-year gain in this sector was in thetransportation and warehousing industries. Trucking activity is oftenconsidered a cyclical indicator because employment fluctuations reflect thedemand for goods," Cracraft said.

Kentucky's government sector, which includes public education, rose by 100jobs in March. Since March 2004, this sector has dropped by 1,700 jobs. On the negative side, the financial activities sector lost 700 jobs in March2005. This sector, which includes establishments involved in finance,insurance, real estate and property leasing or rental, has decreased by2,700 jobs over the past 12 months.

The educational and health services sector reported 400 fewer jobs in March2005 than in February 2005. Since March 2004, the sector has added 2,300jobs. Kentucky's information sector employment went down by 100 jobs from February2005 to March 2005. This sector, which includes firms involved inpublishing, Internet activities and broadcasting and news syndication, had500 fewer jobs since March 2004.

The U.S. Bureau of Labor Statistic's monthly estimate of the numberof employed Kentuckians for March 2005 was 1,878,645 on a seasonallyadjusted basis. This figure is up 601 from the 1,878,044 employed inFebruary 2005, and up 11,246 from the 1,867,399 employed in March 2004.

The monthly estimate of the number of unemployed Kentuckians forMarch 2005 was 104,886. This figure is up 2,151 from the 102,735 unemployedin February 2005, but down 7,518 from the 112,404 Kentuckians unemployed inMarch 2004.

The monthly estimate of the number of Kentuckians in the civilianlabor force for March 2005 was 1,983,531. This figure is up 2,752 from the1,980,779 recorded in February 2005, and up 3,728 from the 1,979,803recorded for March 2004.

Unemployment statistics are based on estimates and are compiled to measuretrends rather than actually to count people working. Civilian labor forcestatistics include non-military workers and unemployed Kentuckians who areactively seeking work. They do not include unemployed Kentuckians who havenot looked for employment within the past four weeks.

Kentucky's statewide unemployment rate and employment levels are seasonallyadjusted. Employment statistics undergo sharp fluctuations due to seasonalevents, such as weather changes, harvests, holidays and school openings andclosings. Seasonal adjustments eliminate these influences and make it easierto observe statistical trends. However, because of the small sample size,county unemployment rates are not seasonally adjusted.


Learn more about the Office of Employment and Training atwww.workforce.ky.gov.


This story was posted on 2005-04-28 13:06:13
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