Education Cabinet
Kentucky’s jobless rate up in July

FRANKFORT, Ky. - Kentucky’s seasonally adjusted unemployment rate rose from  5.8 percent in June 2006 to 6.3 percent in July 2006, according to the Office of Employment and Training, an agency of the Education Cabinet. July’s jobless rate was above July 2005’s rate of 6.2 percent.

The U.S. seasonally adjusted jobless rate increased from 4.6 percent in June 2006 to 4.8 percent in July 2006, according to the U.S. Department of Labor. 

“The primary reason for the increase in the unemployment rate was a larger-than-normal drop in manufacturing jobs caused by vacation and model changeover shutdowns at Kentucky firms during the one-week survey period. July is typically the month that manufacturing facilities shutdown for a week or two for employee vacations or to upgrade, retool or make yearly product changes. When that falls during the same week that we take the employment surveys, you will see a large dip in the employment. The decrease in the number of nonfarm employment was close to the drop in manufacturing employment, so we will probably see a rebound in this area in August,” said Carlos Cracraft, the department’s chief labor market analyst.

“Kentucky was one of 42 states that had a higher unemployment rate in July 2006 than in June 2006,” said Cracraft.

Six of the 11 major nonfarm job North American Industry Classification System (NAICS) sectors had employment increases in July, while five decreased, Cracraft said. The decline of 5,100 jobs brought Kentucky’s nonfarm employment to a seasonally adjusted total of 1,844,300 in July 2006.

According to the seasonally adjusted employment data, the state’s government sector, which includes public education, rose by 700 jobs in July 2006. Since July 2005, this sector has gained 2,000 jobs.

Kentucky’s information sector employment reported a 300-job increase from June 2006 to July 2006. This sector, which includes firms involved in publishing, Internet activities and broadcasting and news syndication, had the same number of jobs in July 2006 as July 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, rose by 300 jobs from June 2006 to July 2006. Over-the-year, this sector had 200 fewer employees in July 2006 than in July 2005.

The construction sector grew by 200 jobs in July 2006. Since July 2005, employment in this sector has risen by 1,800. 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.

The educational and health services sector recorded 200 more jobs in July 2006 than in June 2006. Since July 2005, the sector has expanded by 5,700 jobs. This sector includes private and nonprofit establishments that provide either education and training, or health care and social assistance to their clients, Cracraft said.

The financial activities sector had 100 more jobs in July 2006 than in June 2006. This sector, which includes establishments involved in finance, insurance, real estate and property leasing or rental, has gained 600 jobs over the past 12 months.

On the negative side, Kentucky’s manufacturing sector recorded 5,200 fewer jobs in July 2006 than in June 2006. Compared to July 2005, the sector had 1,500 fewer positions in July 2006 than in June 2006, said Cracraft.

“It is not out of the ordinary for the manufacturing sector to show a decrease in jobs in July. In fact, about 6,200 fewer jobs were reporting in manufacturing in July 2005 and 5,800 fewer jobs in July 2004, but the sector rebounded the following month,” Cracraft said.

Kentucky’s professional and business services sector employment had 900 fewer jobs in July 2006. This sector had 2,400 more employees in July 2006 than in July 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.

Kentucky’s leisure and hospitality sector lost 400 jobs in July 2006. Since July 2005, the sector’s employment has jumped by 4,900 employees. The sector includes arts, entertainment, recreation, accommodations and food services and drinking places industries.

The natural resources and mining sector had a 200-job decrease in July 2006. Since July 2005, the sector has risen by 1,500 jobs, mainly in the coal mining industry.

Kentucky’s trade, transportation and utilities sector recorded a decrease of 200 jobs in July 2006. This sector includes retail and wholesale trade, transportation and utilities businesses, and warehousing, and is the largest sector in Kentucky with 383,200 employees. Since July 2005, the number of jobs in this sector has jumped by 4,400.    

The U.S. Bureau of Labor Statistics’ monthly estimate of the number of employed Kentuckians for July 2006 was 1,898,165 on a seasonally adjusted basis. This figure is up 1,331 from the 1,896,834 employed in June 2006, and up 19,023 from the 1,879,142 employed in July 2005. 

The monthly estimate of the number of unemployed Kentuckians for July 2006 was 126,622. This figure is up 8,836 from the 117,786 unemployed in June 2006, and up 2,199 from the 124,423 Kentuckians unemployed in July 2005.

The monthly estimate of the number of Kentuckians in the civilian labor force for July 2006 was 2,024,787. This figure is up 10,167 from the 2,014,620 recorded in June 2006, and up 21,222 from the 2,003,565 recorded for July 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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