Kentucky’s unemployment rate rises marginally in July, according to latest KYSTATS report

The latest data from the Kentucky Center for Statistics shows the state’s July 2024 unemployment rate stands at 4.7%.

The preliminary July 2024 jobless rate was up 0.1 percentage points from June 2024 and up 0.5 percentage points from one year ago.

The U.S. seasonally adjusted jobless rate for July 2024 was 4.3%, which was up from the 4.1% recorded for June 2024, according to the U.S. Department of Labor.

Labor force statistics, including the unemployment rate, are based upon estimates from the Current Population Survey of households. The survey is designed to measure trends in the number of people working and includes jobs in agriculture and individuals who are self-employed.

Kentucky’s civilian labor force was 2,054,015 in July 2024, an increase of 6,289 individuals from June 2024. The number of people employed in July increased by 4,801 to 1,957,756 while the number unemployed increased by 1,488 to 96,259.

“Kentucky’s higher unemployment rate for July is due to more people entering the labor force rather than fewer people working,” said University of Kentucky’s Center for Business and Economic Research (CBER) Director Mike Clark, Ph.D. “Kentucky actually saw the number of people employed increase in July.”

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 5,600 jobs to 2,039,400 in July 2024 compared to June 2024. Kentucky’s nonfarm employment was up 23,800 jobs or 1.2% compared to July 2023.

“After adding jobs for most of 2024, Kentucky’s employers appear to have pulled back on hiring in July,” said Clark. “Several sectors reported fewer jobs for the month, but most of the declines occurred in manufacturing and government.”

Nonfarm data is provided by the Bureau of Labor Statistics’ Current Employment Statistics program. According to the survey, employment increased for two of Kentucky’s major nonfarm North American Industry Classification System (NAICS) job sectors in July 2024, decreased for seven, and was unchanged for two.

Employment in the trade, transportation and utilities sector grew by 1,300 positions from June to July and was up 3,200 jobs or 0.8% compared to a year ago. In July, the wholesale trade subsector declined by 200 jobs; transportation, warehousing and utilities subsector added 1,300 jobs; and the retail trade subsector added 200 jobs.

Jobs in the financial activities sector rose by 100 positions from June 2024 to July 2024. All the gains from June to July occurred in the real estate, rental and leasing subsector. Employment in the finance and insurance subsector was unchanged. This sector was down 700 jobs from July 2023.

The number of jobs in the state’s mining and logging sector was unchanged from June to July. This sector had 600 more jobs in July 2024 compared to July 2023.

Construction employment did not change from June 2024 to July 2024, but was up 3,900 positions or 4.3% from one year ago.

The leisure and hospitality sector lost 200 positions in July, a decline of 0.1%. This sector reported 1,900 more jobs in July than one year ago. The accommodations and food services subsector was down by 300 positions in July. The arts, entertainment and recreation subsector increased by 100 jobs from June to July.

The other services sector was down by 200 jobs from June to July. This sector had 1,400 more positions in July 2024 compared to July 2023. This sector includes repairs and maintenance, personal care services and religious organizations.

Employment in Kentucky’s information services sector fell by 300 jobs from June to July. The industries in this sector include traditional publishing as well as software publishing; motion pictures and broadcasting; and telecommunications. The number of jobs in this sector was down 1,500 from one year ago.

Employment in Kentucky’s professional and business services sector fell by 800 jobs or 0.3% in July 2024. From June to July, employment rose by 100 jobs in the professional, scientific and technical services subsector; fell by 200 positions in the management of companies subsector; and fell by 700 jobs in the administrative, support and waste management subsector. The sector was down 100 positions compared to July 2023.

The educational and health services sector decreased by 900 positions in July 2024. Employment in the health care and social assistance subsector was unchanged from June to July. The educational services subsector lost 900 jobs. Since last July, this sector has grown by 15,200 jobs or 5%.

Kentucky’s manufacturing sector decreased by 1,800 jobs from June 2024 to July 2024. The durable goods manufacturing subsector lost 2,100 positions. The non-durable goods subsector saw an increase of 300 jobs. Kentucky’s manufacturing employment was down 3,500 positions or 1.4% compared to July 2023.

“While estimated manufacturing employment for Kentucky fell from June to July, the general level of employment in this sector hasn’t really changed much during the past several months,” said Clark. “Employment at durable manufacturers has declined throughout 2024. These declines have been partially offset by gains in employment among non-durable goods manufacturers.”

The government sector dropped by 2,800 jobs from June 2024 to July 2024. The number of jobs increased by 200 in federal government; decreased by 300 in state government; and fell by 2,700 in local government. The total number of government jobs rose by 3,400 positions or 1.1% compared to July 2023.

“Although the employment in the local government subsector declined over the month, a similar decrease was seen in July 2023 and employment rebounded in August.” said Clark. “Also, this subsector has actually gained employment from one year ago.”

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, due to the small sample size, county unemployment rates are not seasonally adjusted.

Visit the Kentucky Center for Statistics website to learn more about Kentucky labor market information.

Kentucky Education and Labor Cabinet

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