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May 16, 2013 - Kentucky’s jobless rate drops to 7.9 percent in April 2013
April 25, 2013 - Jobless rates up in 60 counties from March 2012 to March 2013
April 18, 2013 - Kentucky’s jobless rate increases to 8 percent in March 2013
March 28, 2013 - Jobless rates down in 91 counties from February 2012 to February 2013
March 21, 2013 - Kentucky’s jobless rate remains at 7.9 percent in February 2013
March 14, 2013 - Jobless rates down in 83 counties from January 2012 to January 2013
March 7, 2013 - Kentucky’s jobless rate falls below 8 percent for the first time in more than four years
March 1, 2013 - Kentucky’s annual jobless rate falls sharply to 8.2 percent in 2012

May 16, 2013 - Kentucky’s jobless rate drops to 7.9 percent in April 2013

FRANKFORT, Ky. — Kentucky’s seasonally adjusted preliminary unemployment rate fell to 7.9 percent in April from 8 percent in March 2013, according to the Office of Employment and Training (OET), an agency of the Kentucky Education and Workforce Development Cabinet.

The preliminary April 2013 jobless rate was .3 percentage points below the 8.2 percent rate recorded for the state in April 2012.

The U.S. seasonally adjusted jobless rate decreased to 7.5 percent in April 2013 from 7.6 percent in March 2013, according to the U.S. Department of Labor.

Labor force statistics, including the unemployment rate, are based on estimates from the Current Population Survey of households. It is designed to measure trends rather than to count the actual number of people working. It includes jobs in agriculture and those classified as self-employed.

In April 2013, Kentucky’s civilian labor force was 2,093,048, an increase of 6,226 individuals compared to the previous month. Employment rose by 6,673, while the number of unemployed people dropped by 447.

“Kentucky’s unemployment rate has hovered between 7.9 percent and 8 percent for the last six months,” said economist Manoj Shanker of the OET. “The employment picture has brightened with the steady increase in jobs. That in turn has caused more people to enter the labor force, effectively keeping the unemployment rate fairly flat.”

In a separate federal survey of business establishments that excludes jobs in agriculture and people who are self-employed, Kentucky’s seasonally adjusted nonfarm employment rose by 3,200 jobs to 1,836,200 in April 2013 from the previous month. On an over-the-year basis, the state’s nonfarm employment has added 13,700 jobs.

Nonfarm data is provided by the Bureau of Labor Statistics’ Current Employment Statistics program. According to this survey, four of Kentucky’s 11 major nonfarm North American Industry Classification System (NAICS) job sectors registered gains in employment, while five declined and two remained unchanged.

Kentucky’s leisure and hospitality sector expanded by 2,800 jobs in April 2013. Since April 2012, the sector has jumped by 5,900 positions or 3.4 percent. This sector includes arts, entertainment, recreation, accommodation and food services.

“Jobs have grown steadily for seven of the last nine months in the leisure and hospitality sector,” said Shanker.

The state’s manufacturing sector gained 2,300 positions in April 2013. Since April 2012, employment in manufacturing has shot up by 9,500 jobs or 4.3 percent.

“The softening of the global market has had almost no effect on Kentucky’s durable goods subsector. Manufacturing employment has been driven up by the domestic demand for automobiles. New vehicle sales have gone up by 9 percent through the first four months of the year,” said Shanker.

Kentucky’s professional and business services sector rose by 2,300 jobs in April 2013. This category includes establishments engaged in services that support the day-to-day activities of other organizations, including temporary employment services. Since last April, jobs in the sector have increased by 2,500.

Jobs in the trade, transportation and utilities sector went up by 1,600 jobs in April 2013. This is the largest sector in Kentucky with 374,000 positions, and accounts for about 20 percent of nonfarm employment. Since April 2012, jobs in this sector have increased by 3,800.

The number of jobs in the other services sector, which includes repairs and maintenance, personal care services, and religious organizations, remained unchanged from March 2013 to April 2013. Compared to a year ago, there has been a loss of 3,000 jobs.

The information sector also remained flat in April 2013. This segment has declined by 1,600 positions since April 2012. The industries in this sector include traditional publishing as well as software publishing; motion pictures and broadcasting; and telecommunications.

Employment in the mining and logging sector fell by 100 jobs in April 2013. The number of jobs in this sector has declined by 3,400 or 15 percent since last April.

The educational and health services sector dropped by 800 positions in April 2013. The sector has posted an increase of 1,300 jobs since April 2012.

The government sector, which includes public education, public administration agencies and state-owned hospitals, decreased by 1,500 jobs in April 2013. The sector had 700 fewer jobs compared to April 2012.

The financial activities sector decreased by 1,700 jobs in April 2013. Compared to April a year ago, businesses involved in finance, insurance, real estate and property leasing have gained 1,300 jobs.

“The hiring environment in the financial activities sector seems to have weakened. Employment in the financial sector is prone to large swings. Hiring drops when financial institutions experiment with providing mainly online services. It increases as they try to capture more customers by hiring local representatives,” Shanker said.

The construction sector fell by 1,700 positions in April 2013 from a month ago. Since April 2012, employment in construction has dropped by 1,900 jobs.

“States like California and Florida, where the housing market had been decimated during the recession, are seeing a surge in construction. In Kentucky, residential construction is posting slight gains, but the overall drop in construction is because of a lack of funding for commercial projects and heavy highway construction projects.”

Civilian labor force statistics include nonmilitary 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 Kentucky labor market information at www.kylmi.ky.gov.

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April 25, 2013 - Jobless rates up in 60 counties from March 2012 to March 2013

EDITOR’S NOTE: March’s preliminary and February’s revised county unemployment rate charts are posted at http://workforce.ky.gov/March2013charts.pdf. Acrobat Reader is required to view charts. To download Acrobat Reader, please see the end of this news release.

FRANKFORT, Ky. — Unemployment rates rose in 60 Kentucky counties between March 2012 and March 2013, while 54 county rates decreased and six stayed the same, according to the Kentucky Office of Employment and Training, an agency of the Kentucky Education and Workforce Development Cabinet.

Woodford County recorded the lowest jobless rate in the Commonwealth at 6.1 percent. It was followed by

Oldham County, 6.5 percent; Fayette County, 6.6 percent; Daviess, Franklin and Madison counties, 6.9 percent each; Ohio, Scott and Shelby counties, 7 percent each; and Hancock County, 7.1 percent.

Magoffin County recorded the state’s highest unemployment rate — 18.3 percent. It was followed by Leslie County, 17.2 percent; Harlan County, 16.8 percent; Letcher County, 16.7 percent; Knott County, 15.2 percent; Bell County 15 percent; Jackson and Menifee counties, 14.8 percent each; Fulton County, 14.6 percent; and McCreary County, 14.3 percent.

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. The statistics in this news release are not seasonally adjusted because of the small sample size for each county. The data should only be compared to the same month in previous years.

Learn more about Kentucky labor market information at www.kylmi.ky.gov.

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April 18, 2013 - Kentucky’s jobless rate increases to 8 percent in March 2013

FRANKFORT, Ky. — Kentucky’s seasonally adjusted preliminary unemployment rate rose to 8 percent in March from 7.9 percent in February 2013, according to the Office of Employment and Training (OET), an agency of the Kentucky Education and Workforce Development Cabinet.

The preliminary March 2013 jobless rate was .2 percentage points below the 8.2 percent rate recorded for the state in March 2012.

The U.S. seasonally adjusted jobless rate decreased to 7.6 percent in March 2013 from 7.7 percent in February 2013, according to the U.S. Department of Labor.

In March 2013, Kentucky’s civilian labor force was 2,086,664, an increase of 2,709 individuals compared to the previous month. Employment rose by 381, while the number of unemployed people went up by 2,328.

“More people entered the job market in Kentucky in March 2013 looking for work, but unfortunately, some of them were not successful in finding jobs,” said economist Manoj Shanker of the OET. “A job opening may go unfilled because the person with the right skill set has not been found. That causes small fluctuations in the unemployment rate as we see in March.”

In a separate federal survey of business establishments that excludes jobs in agriculture and people who are self-employed, Kentucky’s seasonally adjusted nonfarm employment dropped by 8,400 jobs in March 2013 from the previous month. On an over-the-year basis, the state’s nonfarm employment has added 12,400 jobs.

“The one-month decline in nonfarm employment is surprising, but it is not a cause for concern. We look at trends and not just a single month. We have had six months of robust growth in employment. In spite of the decline in March, the first quarter has seen a gain of 18,100 jobs.”

Nonfarm data is provided by the Bureau of Labor Statistics’ Current Employment Statistics program. According to this survey, 10 of Kentucky’s 11 major nonfarm North American Industry Classification System (NAICS) job sectors registered declines in employment, while one rose.

Kentucky’s trade, transportation and utilities sector lost 2,200 jobs in March 2013. This is the largest sector in Kentucky with 373,000 positions, and accounts for about 20 percent of nonfarm employment. Since March 2012, jobs in this sector have increased by 3,600 or 1 percent.

“Retail trade, which accounts for over half of the jobs in this sector, lost 1,900 positions in March compared to a month ago,” said Shanker.

The state’s leisure and hospitality sector fell in March 2013 with 1,800 fewer jobs. Since March 2012, the sector has expanded by 2,900 positions. This sector includes arts, entertainment, recreation, accommodation and food services.

Kentucky’s professional and business services sector dropped by 1,300 jobs in March 2013. This category includes establishments engaged in services that support the day-to-day activities of other organizations, including temporary employment services. Since last March, jobs in the sector have increased by 800.

“About one in 10 jobs in Kentucky are in professional and business services,” said Shanker. “The loss of jobs has been almost entirely in temp services, while scientific and technical services have shown strong gains. The annual data indicates that people are moving from temporary jobs into more stable permanent jobs in manufacturing and technical services.”

The construction sector posted a decrease of 1,100 positions in March 2013 from a month ago. Since March 2012, employment in construction has dropped by 600 jobs.

The number of jobs in the other services sector, which includes repairs and maintenance, personal care services, and religious organizations, fell by 900 positions March 2013. Compared to a year ago, there has been a loss of 2,600 jobs.

Kentucky’s manufacturing sector declined by 500 positions in March 2013. Since March 2012, employment in manufacturing has increased by 9,600 jobs or 4.4 percent.

“In spite of the decline in manufacturing in March 2013, employment in durable goods industries, such as machinery and motor vehicle manufacturing, is on an upswing,” said Shanker.

Employment in the mining and logging sector fell by 400 jobs in March 2013. The number of jobs in this sector has declined by 4,000 or 17 percent since last March.

The government sector, which includes public education, public administration agencies and state-owned hospitals, dropped by 300 jobs in March 2013. The sector had 1,000 fewer jobs compared to March 2012.

The financial activities sector decreased by 300 jobs in March 2013. Compared to March a year ago, businesses involved in finance, insurance, real estate and property leasing have gained 2,900 jobs.

The information sector fell by 200 jobs in March 2013. This segment has declined by 1,500 positions or 5.7 percent since March 2012. The industries in this sector include traditional publishing as well as software publishing; motion pictures and broadcasting; and telecommunications.

The educational and health services sector gained 600 positions in March 2013. The sector has posted an increase of 2,300 jobs since March 2012.

“The health care portion of this sector accounts for nearly 90 percent of the employment. While a total of 2,300 jobs were added in this sector over the year, the health care and social assistance subsector grew by 3,000 in the same period,” said Shanker.

Learn more about Kentucky labor market information at www.kylmi.ky.gov.

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March 28, 2013 - Jobless rates down in 91 counties from February 2012 to February 2013

EDITOR’S NOTE: February’s preliminary and January’s revised county unemployment rate charts are posted at http://workforce.ky.gov/Feb13charts.pdf. Acrobat Reader is required to view charts. To download Acrobat Reader, please see the end of this news release.

FRANKFORT, Ky. — Unemployment rates fell in 91 Kentucky counties between February 2012 and February 2013, while 26 county rates increased and three stayed the same, according to the Kentucky Office of Employment and Training, an agency of the Kentucky Education and Workforce Development Cabinet.

Woodford County recorded the lowest jobless rate in the Commonwealth at 5.9 percent. It was followed by Fayette County, 6.5 percent; Oldham County, 6.6 percent; Madison County, 6.8 percent; Franklin and Shelby counties, 6.9 percent each; Scott and Warren counties, 7 percent each; Daviess County, 7.1 percent; and Union County, 7.2 percent.

Magoffin County recorded the state’s highest unemployment rate — 18.9 percent. It was followed by Leslie County, 17.3 percent; Letcher County, 16.9 percent; Harlan County, 16.3 percent; Fulton County, 15.9 percent; Knott County, 15.6 percent; Bell County 15.2 percent; Menifee County, 15.1 percent; Jackson County, 14.9 percent; and McCreary County, 14.6 percent.

Learn more about Kentucky labor market information at www.kylmi.ky.gov.

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March 21, 2013 - Kentucky’s jobless rate remains at 7.9 percent in February 2013

FRANKFORT, Ky. — Kentucky’s seasonally adjusted preliminary unemployment rate stayed at 7.9 percent from January 2013 to February 2013, according to the Office of Employment and Training (OET), an agency of the Kentucky Education and Workforce Development Cabinet.

The preliminary February 2013 jobless rate was .4 percentage points below the 8.3 percent rate recorded for the state in February 2012.

The U.S. seasonally adjusted jobless rate decreased to 7.7 percent in February 2013 from 7.9 percent in January 2013, according to the U.S. Department of Labor.

In February 2013, Kentucky’s civilian labor force was 2,083,557, a decrease of 2,148 individuals compared to the previous month. Employment fell by 149, while the number of unemployed people dropped by 1,999.

In a separate federal survey of business establishments that excludes jobs in agriculture and people who are self-employed, Kentucky’s seasonally adjusted nonfarm employment increased by 6,800 jobs in February 2013 from the previous month. On an over-the-year basis, the state’s nonfarm employment has grown by 1.3 percent with the addition of 23,000 jobs.

“Preliminary February 2013 employment estimates show a considerable improvement in Kentucky’s labor market,” said economist Manoj Shanker of the OET. “Our nonfarm job levels have now reached a post-recession recovery highpoint. We have made considerably more progress than the average state in gaining back lost jobs from the Great Recession.”

Nonfarm data is provided by the Bureau of Labor Statistics’ Current Employment Statistics program. According to this survey, six of Kentucky’s 11 major nonfarm North American Industry Classification System (NAICS) job sectors registered gains in employment, while five declined.

Kentucky’s manufacturing sector had the highest number of new jobs as the sector grew by 3,100 positions or 1.2 percent in February 2013. Since February 2012, employment in manufacturing has increased by 13,100 jobs or 6 percent.

“Most of the employment gain continues to be in the durable goods industries, which include motor vehicle manufacturing as well as machinery, electrical equipment and appliances,” said Shanker.

“The economy’s fundamentals are improving. Though there is less disposable income from the expiration of the 2 percent payroll tax cut, consumers are spending money on cars and keeping the assembly lines humming,” said Shanker.

The state’s leisure and hospitality sector rebounded in February 2013 with 2,300 more jobs. Since February 2012, the sector has expanded by 5,200 positions or 3 percent. This sector includes arts, entertainment, recreation, accommodation and food services.

“The majority of employment in the leisure and hospitality sector is in hotels and restaurants and that has seen steady growth,” said Shanker. “However, 10 percent of the jobs in this category are in the arts and entertainment field and that has been far from steady.”

The educational and health services sector gained 1,200 positions in February 2013. The sector has posted an increase of 1,700 jobs since February 2012.

“Health care jobs are the real driver for this sector. We have had seven months of steady month-to-month growth. More importantly, this sector has expanded every year since 1990,” said Shanker.

The construction sector posted an increase of 900 positions in February 2013 from a month ago. Since February 2012, employment in construction has risen by 300 jobs.

“Kentucky has added construction jobs in three of the last four months. The housing market is showing signs of recovery. Low unemployment and record-low mortgage rates have encouraged more people to buy. Nationally, February housing starts were the strongest in almost five years,” Shanker said.

The state’s trade, transportation and utilities sector added 800 jobs in February 2013. This is the largest sector in Kentucky with 375,100 positions, and accounts for about 20 percent of nonfarm employment. Since February 2012, jobs in this sector have increased by 5,700 or 1.5 percent.

The government sector, which includes public education, public administration agencies and state-owned hospitals, increased by 700 jobs in February 2013. The sector had 400 more jobs compared to February 2012.

The number of jobs in the other services sector, which includes repairs and maintenance, personal care services, and religious organizations, fell by 100 positions February 2013. Compared to a year ago, there has been a loss of 1,700 jobs.

Kentucky’s professional and business services sector dropped by 200 jobs in February 2013. This category includes establishments engaged in services that support the day-to-day activities of other organizations, including temporary employment services. Since last February, jobs in the sector have increased by 1,600.

Employment in the mining and logging sector fell by 300 jobs in February 2013. The number of jobs in this sector has declined by 4,100 or 18 percent since last February.

The financial activities sector lost 600 jobs in February 2013. Compared to February a year ago, businesses involved in finance, insurance, real estate and property leasing have gained 2,500 jobs.

The information sector fell by 1,000 jobs in February 2013. This segment has declined by 1,600 positions since February 2012. The industries in this sector include traditional publishing as well as software publishing; motion pictures and broadcasting; and telecommunications.

"The newspaper media audience, including online, declined by 2 percent in 2012. Coupled with the decline in advertising revenues the outlook for employment in the both the print and online media is unpromising, at least in the short-run," said Shanker.

Learn more about Kentucky labor market information at www.kylmi.ky.gov.

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March 14, 2013 - Jobless rates down in 83 counties from January 2012 to January 2013

EDITOR’S NOTE: January’s preliminary and December’s revised county unemployment rate charts are posted at http://workforce.ky.gov/Jan13charts.pdf. Acrobat Reader is required to view charts. To download Acrobat Reader, please see the end of this news release.

FRANKFORT, Ky. — Unemployment rates fell in 83 Kentucky counties between January 2012 and January 2013, while 33 county rates increased and four stayed the same, according to the Kentucky Office of Employment and Training, an agency of the Kentucky Education and Workforce Development Cabinet.

Woodford County recorded the lowest jobless rate in the Commonwealth at 5.9 percent. It was followed by

Fayette County, 6.5 percent; Oldham County, 6.6 percent; Shelby County, 6.7 percent; Madison County, 7 percent; Franklin County, 7.1 percent; Daviess and Scott counties, 7.2 percent each; and Anderson, Hancock and Union counties, 7.3 percent each.

Magoffin County recorded the state’s highest unemployment rate — 18.8 percent. It was followed by Letcher County, 16.9 percent; Leslie County, 16.4 percent; Harlan County, 15.8 percent; Fulton County, 15.2 percent; Jackson and Knott counties, 15.1 percent each; Bell County 14.7 percent; Menifee County, 14.6 percent; and McCreary County, 14.4 percent.

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. The statistics in this news release are not seasonally adjusted to allow for comparisons between United States, state and county figures.

Learn more about Kentucky labor market information at www.kylmi.ky.gov.

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March 7, 2013 - Kentucky’s jobless rate falls below 8 percent for the first time in more than four years

FRANKFORT, Ky. — For the first time in more than four years, Kentucky’s seasonally adjusted preliminary unemployment rate dropped below 8 percent to 7.9 percent in January 2013, according to the Office of Employment and Training (OET), an agency of the Kentucky Education and Workforce Development Cabinet. The revised December 2012 state rate was 8 percent.

Kentucky’s unemployment rate has not been below 8 percent since November 2008 when it was 7.8 percent.

The preliminary January 2013 jobless rate was .6 percentage points below the 8.5 percent rate recorded for the state in January 2012.

The U.S. seasonally adjusted jobless rate increased to 7.9 percent in January 2013 from 7.8 percent in December 2012, according to the U.S. Department of Labor.

“With the exception of a few blips, the unemployment rate has been improving quite steadily over the last year,” said economist Manoj Shanker of the OET. “The improvement in the labor market has been steady, though painfully slow. Mixed signals from the federal government and uncertainty in the foreign market have slowed the hiring process in Kentucky.”

In January 2013, Kentucky’s civilian labor force was 2,085,509, a decrease of 820 individuals compared to the previous month. Employment also fell with 53 fewer jobs, while the number of unemployed people dropped by 767.

In a separate federal survey of business establishments that excludes jobs in agriculture and people who are self-employed, Kentucky’s seasonally adjusted nonfarm employment decreased by 400 jobs in January 2013 from the previous month. On an over-the-year basis, the state’s nonfarm employment has grown by 1 percent with the addition of 18,300 jobs.

“Kentucky has now recovered 85,700 or about 71 percent of the 120,000 nonfarm jobs lost during the employment downturn period between January 2008 and February 2010,” said Shanker.

The government sector, which includes public education, public administration agencies and state-owned hospitals, increased by 3,100 jobs in January 2013. The sector had 400 fewer jobs compared to January 2012.

“Almost all the gains in local and state government were in education employment. After undergoing years of budget cuts, some of the jobs in schools and colleges are coming back,” said Shanker.

Kentucky’s manufacturing sector rebounded in January 2013 with a gain of 1,500 jobs compared to December 2012. Since January 2012, employment in manufacturing has increased by 9,900 jobs or 4.6 percent.

“A review of the statistics indicate that almost all of the growth, both in January and over the past year, was in durable goods industries, which include motor vehicle manufacturing as well as machinery, electrical equipment and appliances,” said Shanker.

The construction sector posted an increase of 600 positions in January 2013 from a month ago. Since January 2012, employment in construction has fallen by 1,200 positions or 1.7 percent.

The information sector rose by 400 jobs in January 2013. This segment has declined by 700 positions since January 2012. The industries in this sector include traditional publishing as well as software publishing; motion pictures and broadcasting; and telecommunications.

The educational and health services sector remained the same from December 2012 to January 2013. The sector has posted an increase of 3,100 jobs since January 2012.

Employment in the mining and logging sector was unchanged from December 2012 to January 2013. The number of jobs in this sector has dropped by 4,200 or 18 percent since last January.

The financial activities sector declined by 100 jobs in January 2013. Compared to January a year ago businesses involved in finance, insurance, real estate and property leasing have gained 3,000 jobs.

The number of jobs in the other services sector, which includes repairs and maintenance, personal care services, and religious organizations, fell by 500 positions January 2013. Compared to a year ago, there has been a loss of 1,700 jobs.

Kentucky’s professional and business services sector dropped by 700 jobs in January 2013. This category includes establishments engaged in services that support the day-to-day activities of other organizations, including temporary employment services. Since last January, jobs in the sector have increased by 2,300.

Kentucky’s leisure and hospitality sector fell by 1,000 jobs in January 2013. Since January 2012, the sector has expanded by 3,000 positions. This sector includes arts, entertainment, recreation, accommodation and food services.

“Almost all the job loss was in the area of arts and entertainment which comprises 10 percent of the sector. Employment in theatre, dance and museums is driven by discretionary spending. Though the overall employment situation is improving, wages are stagnant. When faced with tough choices people tend to forego a theater performance and use the money to pay down their debt and pay for school,” said Shanker.

The state’s trade, transportation and utilities sector lost 3,700 jobs in January 2013. This is the largest sector in Kentucky with 373,800 positions, and accounts for about 20 percent of nonfarm employment. Since January 2012, jobs in this sector have increased by 5,200 or 1.4 percent.

“The decline is in the transportation and warehousing subsector, which has had 30 months of steady year-over-year growth,” said Shanker. “The hiring environment appears to have weakened as the warehouse delivery industry reassesses its employment needs, especially with increased automation.”

Learn more about Kentucky labor market information at www.kylmi.ky.gov.

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March 1, 2013 - Kentucky’s annual jobless rate falls sharply to 8.2 percent in 2012

FRANKFORT, Ky. — Kentucky’s annual unemployment rate dropped significantly to 8.2 percent in 2012 from 9.5 percent in 2011, a difference of 1.3 percent, while nonfarm employment gained 28,800 jobs, according to the Office of Employment and Training (OET), an agency of the Kentucky Education and Workforce Development Cabinet.

The U.S. annual unemployment rate fell to 8.1 percent in 2012 from 8.9 percent in 2011.

“In 2012, Kentucky’s labor force expanded as more people looked for jobs than in the previous year. But the number of new jobs created in our economy outstripped the new entrants in the job market. That caused our unemployment rate to dip sharply,” said Manoj Shanker, an economist with OET.

The U.S. Bureau of Labor Statistics’ estimate of the number of employed Kentuckians for 2012 was 1,903,880. This figure is up 28,432 from the 1,875,447 employed in 2011 and up 65,385 from 2002.

The estimated number of unemployed Kentuckians for 2012 was 170,926, down 25,310 from the 196,236 unemployed in 2011. The number of those unemployed is up by 58,951 compared to 10 years ago.

In 2012, the estimated number of Kentuckians in the civilian labor force was 2,074,806. This is up 3,123 from the 2,071,683 recorded in 2011, and up 124,336 persons from 1,950,470 in 2002.

Labor force statistics, including the unemployment rate, are based on surveys designed to measure trends.

Kentucky had the 19^th highest annual unemployment rate among all states including the District of Columbia in 2012. Annual average unemployment rates declined in 46 states and the District of Columbia, rose in two states and were unchanged in two.

North Dakota had the lowest 2012 unemployment rate in the country at 3.1 percent while Nevada had the highest rate at 11.1 percent. Among contiguous states, Indiana and Illinois had unemployment rates higher than Kentucky, while Virginia, Missouri, Ohio, West Virginia and Tennessee had rates lower than Kentucky.

In 2012, Kentucky’s nonfarm payroll (agriculture and self-employed jobs excluded) increased by 28,800 or 1.6 percent to 1,824,400 employees making it the highest number of nonfarm jobs in Kentucky since 2008 when Kentucky’s nonfarm employment stood at 1,851,700. Nonfarm employment data is derived from a large sample of business establishments and is based on the Current Employment Statistics (CES) program surveys.

Seven of Kentucky’s 11 major nonfarm job sectors listed in the North American Industry Classification System (NAICS) showed employment growth in 2012, while four reported losses.

According to the annual employment data, Kentucky’s manufacturing sector expanded by 10,600 jobs or 5 percent in 2012 for a total of 223,300 positions. In the last 10 years, the manufacturing base has eroded by 27 percent with the loss of 51,800 jobs.

“Kentucky’s manufacturing employment declined for 10 consecutive years starting in 2001, but then the state’s manufacturing base expanded in 2011 and 2012,” Shanker said. “Most of the growth in 2012 was from the durable goods subsector, especially transportation equipment manufacturing was up 16.8 percent in 2012 with the addition of 7,100 jobs,” said Shanker.

The trade, transportation and utilities sector increased by 5,100 jobs or 1.4 percent in 2012, but it has fallen by 1,700 or .5 percent over the past 10 years. It is the largest Kentucky sector with a total of 370,600 jobs or one-fifth of Kentucky’s nonfarm employment. Within the sector in 2012, wholesale trade was up by 1,000 jobs, retail trade employment was up by 1,500, while businesses in transportation, warehousing and utilities added 2,700 jobs.

“Though only 6 percent of the jobs in this sector are in warehousing and storage, employment in this subsector posted a gain of almost 12 percent with the addition of 2,200 jobs in 2012. The market is changing rapidly with the growth of regional warehousing facilities that are equipped to drop-ship directly to online customers,” said Shanker.

Kentucky’s professional and business services, a sector that includes professional, scientific and technical services, management of companies, and administrative and support management, added 4,800 jobs in 2012. This category also includes temporary help agencies that provide workers to other businesses on a contractual basis. In the last 10 years, the sector has surged by 34,000 jobs or nearly 22 percent.

“Growth in business support services is an important indicator of the health of the economy. Businesses increasingly outsource non-core activities like payroll services,” said Shanker.

The state’s leisure and hospitality sector added 4,500 positions in 2012, and rose by 21,100 or nearly 14 percent since 2002. Within the sector are arts, entertainment and recreation, and accommodation and food services.

“Almost all of the employment gains were in the area of food services and drinking places, which include restaurants and food service caterers,” said Shanker.

The educational and health services sector gained 2,900 jobs in 2012 and has shot up by 34,600 or a little over 15 percent in the last 10 years. Within this sector, health care and social assistance industries, such as hospitals, nursing and residential care facilities and social assistance businesses, added 3,800 jobs in 2012 for a gain of 1.7 percent, and have expanded by 35,100 jobs or more than 18 percent in the past 10 years. Educational services in this sector include employees at private elementary, secondary and postsecondary schools along with other establishments that provide instruction and training. Educational services lost 900 jobs in 2012, and declined by 500 jobs in the last 10 years.

The government sector, which includes federal, state and local employment in public education, public administration agencies and state-owned hospitals, expanded by 2,600 jobs or .8 percent in 2012. In the last 10 years, the sector has grown by 22,300 positions.

The financial activities sector gained 1,800 jobs from a year ago. Over the past 10 years this sector has added 4,000 jobs for a gain of 4.8 percent. “The financial crisis dampened the growth of this sector in 2008 and 2009. But now, that the consolidations and subsequent job losses have played themselves out, this sector is beginning to grow again,” said Shanker.

Kentucky’s construction sector had 300 fewer jobs or .3 percent less in 2012. The sector has declined by 16,000 jobs or nearly 19 percent since 2002.

“The construction industry was hard hit by the mortgage crisis, as well as the general economic recession. Employment has declined in seven of the last 10 years. The changing demographics, such as smaller families, have also dampened construction activity,” Shanker said.

Other services, a sector that includes repair and maintenance; personal and laundry services; and religious, civic, and professional organizations, declined by 400 jobs or .6 percent in 2012. The sector has lost 6,200 jobs in the last 10 years.

The information sector, which includes establishments involved in publishing, Internet activities, data processing, broadcasting and news syndication, lost 500 positions or almost 2 percent in 2012. It is down by 5,100 jobs or more than 16 percent compared to 10 years ago.

Employment in the mining and logging sector declined sharply by almost 10 percent with the loss of 2,200 in 2012. Over a 10-year period the sector has shown a gain of 300 jobs.

“Increased competition from the natural gas industry, as well as low-cost coal mined in the western United States, has considerably dampened employment in Kentucky’s mining sector,” said Shanker. Other industries included in the sector are forestry; oil and gas extraction; and support activities for mining.

Unemployment statistics are based on estimates and are compiled to measure trends rather than actually to count the number of 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.

Learn more about Kentucky labor market information at http://www.kylmi.ky.gov/.

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