KCEP’s State of Working Kentucky report indicates positive economic outlook from labors’ point of view

Federal investments have spurred a rapid recovery from the COVID-19 recession in Kentucky, and rules for spending that money combined with growing union activity are creating the potential for better job quality across the Commonwealth, according the new report, The State of Working Kentucky 2024 .

This report, released to coincide with Labor Day, describes hopeful signs of strong job growth in construction, energy and other industries and the potential for an upswing in manufacturing. New federal laws encourage or require the use of union labor, and Kentucky workers have demonstrated a heightened interest in unions in recent years with growth in union membership and labor actions and an uptick in workers filing for and winning union elections.

“We’re witnessing an incredible resurgence of energy and unity among unions in Kentucky,” said Ashley Snider, senior campaign lead with the Industrial Division of the Communications Workers of America (IUE-CWA). “Workers are coming together like never before to demand fair wages, better working conditions, and respect on the job.”

Chad Mills, State Director of the Kentucky State Building and Construction Trades Council (KSBCTC), said its affiliates are feeling the momentum, with union construction booming across the state and record growth in its registered apprenticeship programs and organizing efforts. “It’s safe to say our building trades unions are in a great place,” he said. “And while we are very proud of all the hard work our building trades leaders are doing, we all know that there is much more that needs to be done.”

KyPolicy’s report notes improvements in job quality are needed after decades of stagnant wages for most workers and higher prices that are straining household budgets. Federal stimulus created a tight labor market that has resulted in the first real wage growth for workers at the bottom in Kentucky in many years. But despite that progress, 19% of Kentucky workers still make less than $15 an hour, and the cost of housing, child care, food, medical and other expenses are making it hard for many to make ends meet.

More of those workers are taking action to make their jobs better.

“We have many unions on strike across Kentucky right now,” said Dustin Reinstedler, president of the Kentucky AFL-CIO. “Not a single one of them is what you would consider wealthy, nor are they bargaining to become wealthy. The Kentucky worker simply wants their equitable share of what they produce.”

The report also describes the continuing challenge of the lack of jobs in parts of rural and especially eastern Kentucky, and pushes back on false narratives about Kentucky’s labor force participation rate. A full 79% of prime age workers are already in the labor force, and three-fourths of those who are not are caregivers or people who are ill or disabled. The report also describes persistent economic disparities facing Black and immigrant workers and those Kentuckians involved in the criminal legal system.

“The State of Working Kentucky 2024” concludes with policy recommendations. Kentucky should allocate more state resources to maximize federal dollars coming to the state, especially for communities that lack adequate job opportunities; encourage, require and support job quality and unionization through project labor agreements, community benefits agreements, support for apprenticeships and public procurement requirements; and do more to address burdensome prices by investing surplus state dollars in needs like affordable housing and child care and using already-existing resources to lower costs ranging from tax filing fees to medical debt.

“Kentuckians are working hard, but they need the state to do its part and make sure that when infrastructure dollars create jobs, they’re good union jobs,” said Misty Robertson, National Broadband Lead at Communication Workers of America.

The full report is available at kypolicy.org/ .

Kentucky Center for Economic Policy

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