Education Cabinet
Kentucky’s jobless rate goes up in November

Kentucky’s seasonally adjusted unemployment rate increased to a preliminary 6.2 percent in November 2005 from the revised October 2005 rate of 6.1 percent, according to the Office of Employment and Training, an agency of the Education Cabinet. November’s rate was above November 2004’s rate of 4.7 percent.

The U.S. seasonally adjusted jobless rate in November 2005 remained at the October 2005 rate of 5 percent, according to the U.S. Department of Labor. Kentucky was one of 25 states that reported higher unemployment rates in November 2005 as compared to October 2005.

“Kentucky was one of 23 states plus the District of Columbia that reported an unemployment rate above the U.S. jobless rate in November 2005,” said Carlos Cracraft, the department's chief labor market analyst.

“In addition to an increase in the state’s unemployment rate, November is only the third month during 2005 that Kentucky has recorded a loss (-1,000) in nonfarm payroll employment. However, Kentucky nonfarm employment has jumped by 21,200 since November 2004,” Cracraft said.

Four of the 10 major nonfarm job North American Industry Classification System (NAICS) sectors had employment increases in November, while five decreased and the remaining one stayed the same, Cracraft said. A drop of 1,000 workers brought Kentucky’s nonfarm employment to a seasonally adjusted total of 1,821,900 in November 2005.

According to the seasonally adjusted employment data, the state’s leisure and hospitality sector rose by 200 jobs from October 2005 to November 2005. Since November 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.

“November marked the first month since August that the leisure and hospitality sector has seen an employment increase. The food services and drinking places industries is responsible for about 80 percent of the over-the-year gain,” Cracraft said.

The state’s construction sector added 100 jobs in November 2005. Since November 2004, employment in this sector has risen by 3,300. 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.

Kentucky’s financial activities sector went up by 100 jobs in November 2005. This sector, which includes establishments involved in finance, insurance, real estate and property leasing or rental, has decreased by 1,600 jobs over the past 12 months.

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 October 2005 to November 2005. Over the past 12 months, the sector has added 1,400 positions.

The educational and health services sector reported 235,700 jobs in both October 2005 and November 2005. Since November 2004, the sector has jumped by 4,000 jobs. A majority of these 4,000 new jobs have been in the health care industries, said Cracraft.

On the negative side, Kentucky’s trade, transportation and utilities sector recorded an 800-job drop in November 2005. This sector includes retail and wholesale trade, transportation and utilities businesses, and warehousing, and is the largest sector in Kentucky with 375,500 employees. Since November 2004, the number of jobs in this sector has jumped by 2,300.  

“The trade, transportation and utilities sector has seen alternating months of employment gains and losses over the past four months. Looking at the whole year, about 60 percent of the over-the-year gain of 2,300 jobs has been in the transportation and warehousing industries,” Cracraft said.

The state’s manufacturing sector lost 300 jobs in November 2005. Compared to November 2004, the sector had 900 more employees in November 2005.

The government sector, which includes public education, had 300 fewer jobs in November 2005. Since November 2004, this sector has gained 900 jobs.

Kentucky’s information sector employment went down by 100 jobs from October 2005 to November 2005. This sector, which includes firms involved in publishing, Internet activities and broadcasting and news syndication, has 800 fewer jobs since November 2004.

The professional and business services sector had 100 fewer jobs in November 2005 than in October 2005. This sector recorded 4,300 more employees in November 2005 than November 2004. 

The U.S. Bureau of Labor Statistic’s monthly estimate of the number of employed Kentuckians for November 2005 was 1,893,851 on a seasonally adjusted basis. This figure is down 6,040 from the 1,899,891 employed in October 2005, but up 19,138 from the 1,874,713 employed in November 2004.

The monthly estimate of the number of unemployed Kentuckians for November 2005 was 126,065. This figure is up 2,087 from the 123,978 unemployed in October 2005, and up 34,143 from the 91,922 Kentuckians unemployed in November 2004.

The monthly estimate of the number of Kentuckians in the civilian labor force for November 2005 was 2,019,916. This figure is down 3,953 from the 2,023,869 recorded in October 2005, but up 53,281 from the 1,966,635 recorded for November 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.