Education Cabinet
Kentucky’s jobless rate unchanged in February
Kentucky’s seasonally adjusted unemployment rate remained at the January 2006 level of 6.3 percent in February 2006, according to the Office of Employment and Training, an agency of the Education Cabinet. February’s preliminary jobless rate was above February 2005’s rate of 5.6 percent.
The U.S. seasonally adjusted jobless rate increased from 4.7 percent in January 2006 to 4.8 percent in February 2006, according to the U.S. Department of Labor.
“Kentucky’s unemployment rate has been in the 6 percent to 6.5 percent range for the past 10 months. Compared to other states, Kentucky was one of 15 states plus the District of Columbia that reported an unemployment rate above the U.S. jobless rate in February 2006,” said Carlos Cracraft, the department's chief labor market analyst.
“February 2006 marked the first month since July 2005 that Kentucky has not recorded a gain in nonfarm payroll employment. However, the state’s nonfarm employment has grown by 20,800 since February 2005. Overall, 48 states and the District of Columbia recorded over-the-year nonfarm payroll employment increases in February, which is a good sign for the nation as a whole,” Cracraft said.
Three of the 11 major nonfarm job North American Industry Classification System (NAICS) sectors had employment increases in February, while six decreased and two stayed the same, Cracraft said. The decrease of 2,200 jobs brought Kentucky’s nonfarm employment to a seasonally adjusted total of 1,836,300 in February 2006.
According to the seasonally adjusted employment data, the state’s educational and health services sector reported 500 more jobs in February 2006 than in January 2006. Since February 2005, the sector has shot up by 4,200 jobs. “Employment in this sector, which includes private and nonprofit establishments that provide either education and training or health care and social assistance to their clients, has shown growth in 10 of the past 11 months,” Cracraft said.
Kentucky’s manufacturing sector had 300 more jobs in February 2006 than in January 2006. Compared to February 2005, the sector had 600 fewer positions in February 2006.
The financial activities sector increased by 100 jobs in February 2006. This sector, which includes establishments involved in finance, insurance, real estate and property leasing or rental, has gained 1,700 jobs over the past 12 months.
Kentucky’s information sector employment stayed the same from January 2006 to February 2006. This sector, which includes firms involved in publishing, Internet activities and broadcasting and news syndication, has 500 more jobs compared to February 2005.
The natural resources and mining sector recorded the same number of jobs January 2006 and February 2006. Since February 2005, the sector has increased by 2,100 jobs. Approximately two-thirds of this over-the-year employment growth was in the coal mining industry, said Cracraft.
On the negative side, the trade, transportation and utilities sector recorded a drop of 1,200 jobs in February 2006. This sector includes retail and wholesale trade, transportation and utilities businesses, and warehousing, and is the largest sector in Kentucky with 379,600 employees. Since February 2005, the number of jobs in this sector has jumped by 2,500.
The government sector, which includes public education, fell by 800 jobs in February 2006 after recording a 1,700 job gain in January 2006. Since February 2005, this sector has gained 1,800 jobs. “Employment in the government sector is difficult to gauge because school districts across the state open and close at different times during the school year and impacts the monthly estimates,” Cracraft said.
Kentucky’s construction sector lost 500 jobs in February 2006. Since February 2005, employment in this sector has risen by 1,300. Most of the hires have been in specialty trades, such as contractors involved in pouring concrete, site preparation, plumbing, painting and electrical work, said Cracraft.
Employment in the other services sector, which includes such establishments as repair and maintenance places, personal and laundry services, religious organizations, and civic and professional organizations, decreased by 300 jobs from January 2006 to February 2006. Over the past 12 months, the sector has lost 600 positions.
Kentucky’s leisure and hospitality sector went down by 200 jobs from January 2006 to February 2006. Since February 2005, the sector’s employment has jumped by 4,400 employees. The sector includes arts, entertainment, recreation, accommodations and food services and drinking places industries.
The professional and business services sector had 100 fewer jobs in February 2006 than January 2006. This sector reported 3,500 more employees in February 2006 than February 2005. The professional and business services sector includes professional, scientific and technical services, and management of companies and administrative and support management, including temporary help agencies.
The U.S. Bureau of Labor Statistic’s monthly estimate of the number of employed Kentuckians for February 2006 was 1,892,393 on a seasonally adjusted basis. This figure is up 4,825 from the 1,887,568 employed in January 2006, and up 18,691 from the 1,873,702 employed in February 2005.
The monthly estimate of the number of unemployed Kentuckians for February 2006 was 126,726. This figure is up 774 from the 125,952 unemployed in January 2006, and up 15,765 from the 110,961 Kentuckians unemployed in February 2005.
The monthly estimate of the number of Kentuckians in the civilian labor force for February 2006 was 2,019,119. This figure is up 5,599 from the 2,013,520 recorded in January 2006, and up 34,456 from the 1,984,663 recorded for February 2005.
Unemployment statistics are based on estimates and are compiled to measure trends rather than actually to count people working. Civilian labor force statistics include non-military workers and unemployed Kentuckians who are actively seeking work. They do not include unemployed Kentuckians who have not looked for employment within the past four weeks.
Kentucky’s statewide unemployment rate and employment levels are seasonally adjusted. Employment statistics undergo sharp fluctuations due to seasonal events, such as weather changes, harvests, holidays and school openings and closings. Seasonal adjustments eliminate these influences and make it easier to 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 at www.workforce.ky.gov.
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