Kentucky’s unemployment rate rose to 8.4 percent in June from 8.1 percent in May 2013, according to the Office of Employment and Training (OET). The June 2013 jobless rate was 0.1 percentage points above the 8.3 percent rate recorded for the state in June 2012.
The latest labor statistics showed a weakening in the Commonwealth's economy not seen since 2009.
“The Kentucky labor market has definitely taken a short-term hit. We had the largest monthly gain in unemployment in over four years. A longer view, based on changes from a year ago, shows a definite softening,” said economist Manoj Shanker of the OET.
While Kentucky's jobless rate rose last month, the nationwide jobless rate was unchanged from May 2013 to June 2013 at 7.6 percent, according to the U.S. Department of Labor.
The Bluegrass State's employment in the leisure and hospitality and public sectors posted gains in June over the previous month. Meantime, blue-collar sectors such as logging and mining, construction and manufacturing saw a decrease in employment since May.
“The largest decline is in government-funded activities related to heavy construction like roads and bridges. Budget cuts have dampened this area of construction,” said Shanker.
The state’s manufacturing sector fell by 3,200 positions in June 2013. Since June 2012, however, employment in manufacturing has increased by 2,000 jobs.
“Year-over-year manufacturing employment has increased for 35 consecutive months, but the monthly gains have been sporadic,” said Shanker. “The current uptick in consumer confidence should keep manufacturing employment stable.”
