Education Cabinet
Kentucky’s jobless rate unchanged in June

Press Release Date:  Wednesday, July 27, 2005  
Contact Information:  Kim Saylor Brannock
(502) 564-6606

Kentucky’s seasonally adjusted preliminary unemployment rate remained at 5.7 percent from May to June 2005 as the state’s nonfarm employment increased by 4,500 jobs, according to the Office of Employment and Training, an agency of the Education Cabinet. The June 2005 rate was above June 2004’s jobless rate of 5.4 percent.

The U.S. seasonally adjusted jobless rate decreased from 5.1 percent in May 2005 to 5 percent in June 2005, according to the U.S. Department of Labor.

“June marked the first month in 2005 that Kentucky’s unemployment rate did not increase and the fifth consecutive month that the state’s economy has added jobs. The nonfarm employment increase of 4,500 in June brings total job growth over the first six months of 2005 to 18,500 compared to an increase of 5,700 for January through June of 2004,” said Carlos Cracraft, the department's chief labor market analyst.

“Kentucky’s jobless rate of 5.7 percent ranked as the 10th highest among all states in June with one other state having the same unemployment rate as Kentucky’s,” he said. “Kentucky was one of nine states that had a higher unemployment rate in June 2005 than in June 2004.”

Seven of the 10 major nonfarm job North American Industry Classification System (NAICS) sectors had employment increases in June, while three decreased, Cracraft said. A monthly survey of business establishments revealed that Kentucky’s nonfarm employment jumped by 4,500 on a seasonally adjusted basis to 1,821,200 in June. Since June 2004, nonfarm employment has gone up 24,700.

According to the seasonally adjusted employment data, the government sector, which includes public education, had 2,500 more jobs in June 2005 than in May 2005. Since June 2004, this sector has added 2,200 jobs.

“It is likely that most of the job gain in the government sector was in the local education area. Since school districts are not on the same opening and closing schedule, this area is difficult to estimate when it comes to monthly employment. Other factors that can skew the number of employees include the employees such as cafeteria workers, custodians and bus drivers who are not counted as employed when school is closed. As a result, we may see a corresponding downward adjustment in the number of employees in the government sector when the next few months’ estimates are seasonally adjusted,” said Cracraft.

The educational and health services sector reported 1,000 more jobs in June 2005 than in May 2005. Since June 2004, the sector has added 3,200 jobs. “About two-thirds of the new jobs in this sector are in the health care industries,” Cracraft said.

The state’s leisure and hospitality sector rose by 800 jobs in June 2005. Since June 2004, the sector’s employment has gone up by 5,300 employees. The sector includes arts, entertainment, recreation, accommodations and food services and drinking places industries.

The professional and business services sector reported 800 more jobs in June 2005 than in May 2005. This sector recorded 7,100 more employees in June 2005 than June 2004.

The financial activities sector added 200 jobs in June 2005. This sector, which includes establishments involved in finance, insurance, real estate and property leasing or rental, has decreased by 1,500 jobs over the past 12 months.

Kentucky’s information sector employment went up by 200 jobs from May 2005 to June 2005. This sector, which includes firms involved in publishing, Internet activities and broadcasting and news syndication, had 500 fewer jobs since June 2004.

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, increased by 100 jobs from May 2005 to June 2005. Over the past 12 months, the sector has added 1,600 positions.

On the negative side of the ledger, the state’s manufacturing sector fell by 1,000 jobs in June. Compared to June 2004, the sector had 1,200 more employees in June 2005.

“The manufacturing sector had shown growth in March, April and May before taking a dip in June. We even showed a gain of 1,200 jobs over-the-year with growth in wood products manufacturing and paper manufacturing,” Cracraft said.

Kentucky’s trade, transportation and utilities sector recorded 200 fewer workers in June 2005 than in May 2005. This sector includes retail and wholesale trade, transportation and utilities businesses, and warehousing, and is the largest sector in Kentucky with 374,200 employees. Since June 2004, the number of jobs in this sector has increased by 1,400.  

The state’s construction sector had 100 fewer jobs in June 2005 than in May 2005. Since June 2004, employment in this sector has risen by 3,900. “Prior to June’s employment loss, this sector had added employment for eight consecutive months. Since the construction sector’s most recent low point in February 2003, this sector has grown by 6,200 jobs,” said Cracraft.

 The U.S. Bureau of Labor Statistic’s monthly estimate of the number of employed Kentuckians for June 2005 was 1,874,815 on a seasonally adjusted basis. This figure is down 2,903 from the 1,877,718 employed in May 2005, but up 5,625 from the 1,869,190 employed in June 2004.

 The monthly estimate of the number of unemployed Kentuckians for June 2005 was 114,134. This figure is down three from the 114,137 unemployed in May 2005, but up 6,427 from the 107,707 Kentuckians unemployed in June 2004.

 The monthly estimate of the number of Kentuckians in the civilian labor force for June 2005 was 1,988,949. This figure is down 2,906 from the 1,991,855 recorded in May 2005, but up 12,052 from the 1,976,897 recorded for June 2004. 

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.

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