Education Cabinet
Kentucky’s jobless rate goes up in December

Kentucky’s seasonally adjusted unemployment rate increased to a preliminary 6.3 percent in December 2005 from the revised November 2005 rate of 6.2 percent, according to the Office of Employment and Training, an agency of the Education Cabinet. December’s rate was above December 2004’s rate of 4.7 percent.

The U.S. seasonally adjusted jobless rate decreased from 5 percent in November 2005 to 4.9 percent in December 2005, according to the U.S. Department of Labor. 

“Kentucky was one of 18 states plus the District of Columbia that reported an unemployment rate above the U.S. jobless rate in December 2005,” said Carlos Cracraft, the department's chief labor market analyst.

“Even though the unemployment rate went up in December in Kentucky, we recorded an increase in Kentucky’s nonfarm payroll employment of 900. Compared to December 2004, Kentucky’s nonfarm employment has grown by 20,900 making Kentucky one of 47 states and the District of Columbia that has seen over-the-year increases in nonfarm employment,” Cracraft said.

Five of the 10 major nonfarm job North American Industry Classification System (NAICS) sectors had employment increases in December, while four decreased and the remaining one stayed the same, Cracraft said. The increase of 900 workers brought Kentucky’s nonfarm employment to a seasonally adjusted total of 1,823,600 in December 2005.

According to the seasonally adjusted employment data, the state’s educational and health services sector reported 600 more jobs in December 2005 than in November 2005. Since December 2004, the sector has jumped by 4,200 jobs. “This sector includes private and nonprofit establishments that provide either education and training or health care and social assistance to their clients. A majority of these 4,200 new jobs have been in the health care industries, as health care employment continues to grow,” said Cracraft.

The professional and business services sector had 600 more jobs in December 2005 than November 2005. This sector reported 4,200 more employees in November 2005 than November 2004. “This sector includes professional, scientific and technical services, and management of companies and administrative and support management, including temporary help agencies,” Cracraft said.

The state’s construction sector added 600 jobs in December 2005. Since December 2004, employment in this sector has risen by 2,900. 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.

Kentucky’s leisure and hospitality sector rose by 500 jobs from November 2005 to December 2005. Since December 2004, the sector’s employment has gone up by 4,800 employees. The sector includes arts, entertainment, recreation, accommodations and food services and drinking places industries.

The financial activities sector went up by 300 jobs in December 2005. This sector, which includes establishments involved in finance, insurance, real estate and property leasing or rental, has decreased by 1,300 jobs over the past 12 months.

On the negative side, the trade, transportation and utilities sector recorded a drop of 900 jobs in December 2005. This sector includes retail and wholesale trade, transportation and utilities businesses, and warehousing, and is the largest sector in Kentucky with 375,300 employees. Since December 2004, the number of jobs in this sector has jumped by 2,600.  

The state’s manufacturing sector lost 500 jobs in December 2005. Compared to December 2004, the sector had 1,000 more employees in December 2005.

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 200 jobs from November 2005 to December 2005. Over the past 12 months, the sector has added 1,400 positions.

Kentucky’s information sector employment went fell by 100 jobs from November 2005 to December 2005. This sector, which includes firms involved in publishing, Internet activities and broadcasting and news syndication, has 900 fewer jobs since December 2004.

The government sector, which includes public education, remained the same from November 2005 to December 2005. Since December 2004, this sector has gained 700 jobs. 

The U.S. Bureau of Labor Statistic’s monthly estimate of the number of employed Kentuckians for December 2005 was 1,889,808 on a seasonally adjusted basis. This figure is down 2,579 from the 1,892,387 employed in November 2005, but up 14,025 from the 1,875,783 employed in December 2004.

The monthly estimate of the number of unemployed Kentuckians for December 2005 was 127,174. This figure is up 2,645 from the 124,529 unemployed in November 2005, and up 35,296 from the 91,878 Kentuckians unemployed in December 2004.

The monthly estimate of the number of Kentuckians in the civilian labor force for December 2005 was 2,016,982. This figure is up 66 from the 2,016,916 recorded in November 2005, and up 49,321 from the 1,967,661 recorded for December 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.

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