Kentucky’s seasonally adjusted unemployment rate rose from 5.6 percent in May 2006 to 5.8 percent in June 2006, according to the Office of Employment and Training, an agency of the Education Cabinet. June’s jobless rate was below June 2005’s rate of 6.1 percent.

The U.S. seasonally adjusted jobless rate remained at 4.6 percent from May 2006 to June 2006, according to the U.S. Department of Labor. 

“June 2006 marked the second consecutive month that Kentucky’s unemployment rate has been below 6 percent. Kentucky’s unemployment rate had been in the 6 percent to 6.5 percent range for the previous 12 months.  Kentucky was one of 19 states that had a higher unemployment rate in June 2006 than in May 2006,” said Carlos Cracraft, the department's chief labor market analyst.

“Kentucky recorded a gain in nonfarm payroll employment of 4,000 in June 2006 and 23,600 since June 2005. Altogether, 47 states and the District of Columbia have recorded over-the-year increases in nonfarm employment,” Cracraft said.

Seven of the 11 major nonfarm job North American Industry Classification System (NAICS) sectors had employment increases in June, while two decreased, and two remained the same, Cracraft said. The addition of 4,000 jobs brought Kentucky’s nonfarm employment to a seasonally adjusted total of 1,849,700 in June 2006.

According to the seasonally adjusted employment data, Kentucky’s professional and business services sector employment reported the largest increase of any job category with 1,300 more jobs in June 2006. This sector had 3,200 more employees in June 2006 than in June 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.

“This June gain of 1,300 jobs more than offset a loss of 500 jobs in the previous month,” Cracraft said.

The educational and health services sector recorded 1,100 more jobs in June 2006 than in May 2006. Since June 2005, the sector has expanded by 5,600 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 educational and health services sector continues to trend upward. Employment in this sector has shown growth for the past seven months. About two-thirds of the 5,600 new jobs over-the-year have been in the ever growing health care industries,” Cracraft said.

Kentucky’s leisure and hospitality sector rebounded in June with 900 new jobs. Since June 2005, the sector’s employment has jumped by 5,500 employees. The sector includes arts, entertainment, recreation, accommodations and food services and drinking places industries. The accommodation and food services/drinking places industries are responsible for about 80 percent of that over-the-year gain, said Cracraft.

The government sector, which includes public education, rose by 800 jobs in June 2006. Since June 2005, this sector has gained 2,300 jobs.

The construction sector grew by 400 jobs in June 2006. Since June 2005, employment in this sector has risen by 1,900. 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 natural resources and mining sector had a 200-job increase in June 2006. Since June 2005, the sector has risen by 2,000 jobs. “This sector has added employment for the past four consecutive months. After years of decline, employment in this sector has seen an upswing in the last two years because of increased demand in the coal mining industry,” said Cracraft.

Kentucky’s manufacturing sector recorded 100 more jobs in June 2006 than in May 2006. Compared to June 2005, the sector had 2,600 fewer positions in June 2006 with about 80 percent of that decline in the apparel industry, said Cracraft.

Kentucky’s information sector employment reported the same number of jobs in May 2006 and June 2006. This sector, which includes firms involved in publishing, Internet activities and broadcasting and news syndication, had 100 fewer jobs compared to June 2005.

The financial activities sector also remained at the same job level from May 2006 to June 2006. This sector, which includes establishments involved in finance, insurance, real estate and property leasing or rental, has gained 700 jobs over the past 12 months.

On the negative side, Kentucky’s trade, transportation and utilities sector recorded a decrease of 400 jobs in June 2006. This sector includes retail and wholesale trade, transportation and utilities businesses, and warehousing, and is the largest sector in Kentucky with 383,400 employees. Since June 2005, the number of jobs in this sector has jumped by 5,100.   

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, fell by 400 jobs from May 2006 to June 2006. Employment in this sector was the same in both June 2005 and June 2006.

The U.S. Bureau of Labor Statistics’ monthly estimate of the number of employed Kentuckians for June 2006 was 1,896,834 on a seasonally adjusted basis. This figure is down 2,225 from the 1,899,059 employed in May 2006, but up 18,940 from the 1,877,894 employed in June 2005. 

The monthly estimate of the number of unemployed Kentuckians for June 2006 was 117,786. This figure is up 4,724 from the 113,062 unemployed in May 2006, but down 4,652 from the 122,438 Kentuckians unemployed in June 2005.

The monthly estimate of the number of Kentuckians in the civilian labor force for June 2006 was 2,014,620. This figure is up 2,499 from the 2,012,121 recorded in May 2006, and up 14,288 from the 2,000,332 recorded for June 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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