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Kentucky's jobless rate drops in August to 5.4% Kim Saylor Brannock Kentucky Education Cabinet (502) 564-6606 ext. 130 email: KimS.Brannock@ky.gov FRANKFORT, Ky. (Sept. 21, 2005) - August's 5.4 percent marked the first timein nine months that Kentucky's seasonally adjusted preliminary unemploymentrate has fallen, according to the Office of Employment and Training, anagency of the Education Cabinet. August's rate declined from the July 2005rate of 5.9 percent but was still above August 2004's jobless rate of 5.1percent. The U.S. seasonally adjusted jobless rate went down from 5 percent in July2005 to 4.9 percent in August 2005, according to the U.S. Department ofLabor. Kentucky was one of 25 states plus the District of Columbia thatreported unemployment rates above the U.S. average in August 2005. "Before Kentucky's unemployment rate drop in August, the jobless rate 2005had increased in six of the seven months and remained the same from May toJune. Kentucky was one of 31 states that had a lower unemployment rate inAugust than in July 2005," said Carlos Cracraft, the department's chieflabor market analyst. "In addition August 2005 showed an increase of 3,400 in nonfarm payrollemployment making it the sixth month during 2005 that Kentucky has recordeda gain in nonfarm payroll employment." Five of the 10 major nonfarm job North American Industry ClassificationSystem (NAICS) sectors had employment increases in August, while theremaining five decreased, Cracraft said. A monthly survey of businessestablishments revealed that Kentucky's nonfarm employment rose by 3,400 ona seasonally adjusted basis to 1,820,700 in August. Manufactoring employment rebounding in Kentucky According to the seasonally adjusted employment data, the state'smanufacturing sector rebounded in August by adding the most jobs of anysector with 5,900. Compared to August 2004, the sector had 900 moreemployees in August 2005. "This August 5,900 jump in jobs followed a 5,800 drop in jobs in July. TheJuly decrease reflected larger-than-usual vacation and other temporaryshutdowns that we typically see at factories this time of the year ascompanies close to upgrade, retool equipment or make yearly productchanges," Cracraft said. Kentucky's trade, transportation and utilities sector recorded 1,900 moreworkers in August 2005 than in July 2005. This sector includes retail andwholesale trade, transportation and utilities businesses, and warehousing,and is the largest sector in Kentucky with 377,000 employees. Since August2004, the number of jobs in this sector has surged by 5,000. "This sector has added employment in four or the past five months and isbeing driven by the transportation and warehousing industries. Since itsmost recent low in July 2003, this sector has swelled by 7,800 jobs,"Cracraft said. The professional and business services sector reported 1,700 more jobs inAugust 2005 than in July 2005. This sector recorded 6,900 more employees inAugust 2005 than August 2004. August was the fifth month this year that thissector has shown an employment increase. Travel sector picks up in August The state's leisure and hospitality sector picked up in August 2005 with 400new jobs. Since August 2004, the sector's employment has gone up by 5,600employees. The sector includes arts, entertainment, recreation,accommodations and food services and drinking places industries. "We haveexperienced alternating months of employment gains and losses over the pastfive months in this sector. The food services and drinking places industriesin this sector are responsible for about 85 percent of the over-the-yearjobs gain," Cracraft said. 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 300jobs from July 2005 to August 2005. Over the past 12 months, the sector hasadded 1,700 positions. On the negative side, the government sector, which includes publiceducation, had 5,000 fewer jobs in August 2005 than in July 2005. SinceAugust 2004, this sector has lost 1,200 jobs. "The monthly employment figures in the government sector have beendramatically influenced by the variance in the openings and closings ofschools across the state. Economists make seasonal adjustments to factor outseasonal influences such as changes in weather, school openings and closingsand major holidays because such factoring makes it easier to recognizenonseasonal trends. But in this case, that seasonal adjustment may haveskewed the numbers somewhat in the state and local portion of this sector inAugust," said Cracraft. Education, health jobs are down in August The educational and health services sector reported 1,000 fewer jobs inAugust 2005 than in July 2005. Since August 2004, the sector has added 2,900jobs. "This is the first month since March 2005 that the educational andhealth services sector has dropped. Most of the 2,900 jobs that have beenadded over-the-year are in the health care industries," Cracraft said.Kentucky's financial activities sector lost 600 jobs in August 2005. Thissector, which includes establishments involved in finance, insurance, realestate and property leasing or rental, has decreased by 2,100 jobs over thepast 12 months. The state's construction sector fell by 100 jobs in August 2005. SinceAugust 2004, employment in this sector has risen by 4,100. Kentucky's information sector employment went down by 100 jobs from July2005 to August 2005. This sector, which includes firms involved inpublishing, Internet activities and broadcasting and news syndication, has800 fewer jobs since August 2004. The U.S. Bureau of Labor Statistic's monthly estimate of the numberof employed Kentuckians for August 2005 was 1,884,961 on a seasonallyadjusted basis. This figure is up 7,587 from the 1,877,374 employed in July2005, and up 13,937 from the 1,871,024 employed in August 2004. The monthly estimate of the number of unemployed Kentuckians forAugust 2005 was 106,825. This figure is down 11,753 from the 118,578unemployed in July 2005, but up 5,747 from the 101,078 Kentuckiansunemployed in August 2004. The monthly estimate of the number of Kentuckians in the civilianlabor force for August 2005 was 1,991,786. This figure is down 4,166 fromthe 1,995,952 recorded in July 2005, but up 19,684 from the 1,972,102recorded for August 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 2005-09-21 07:55:36
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Have comments or corrections for this story? Use our contact form and let us know. More articles from topic Kentucky:
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