Kentucky Education and Workforce Development Cabinet releases June 2018 unemployment report

Kentucky’s seasonally adjusted preliminary June 2018 unemployment rate was 4.2 percent, according to the Kentucky Center for Statistics (KYSTATS), an agency of the Kentucky Education and Workforce Development Cabinet. The unemployment rate for June 2018 was up from the 4.1 percent reported for May 2018.

The preliminary June 2018 jobless rate was down 0.9 percentage points from the 5.1 percent recorded for the state in June 2017.

The U.S. seasonally adjusted jobless rate for June 2018 was 4 percent, up 0.2 percentage points from the 3.8 percent reported for May 2018, 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. The survey is designed to measure trends in the number of people working. It includes jobs in agriculture and individuals who are self-employed.

In June 2018, Kentucky’s civilian labor force was 2,063,041, an increase of 4,616 individuals compared to the previous month. The number of people employed was up by 1,921, while the number unemployed increased by 2,695.

“After falling to a low of 4 percent in March and April, Kentucky’s unemployment rate increased in both May and June,” said University of Kentucky’s Center for Business and Economic Research (CBER) Associate Director Mike Clark, Ph.D. “The increase resulted from more people entering the workforce and looking for work in June rather than a decline in the number of people employed.”

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 4,600 jobs in June 2018 compared to May 2018. Kentucky has added 3,100 jobs since June 2017, a 0.2 percent employment growth.

“While the household survey indicates more people worked in June, the establishment survey points to fewer jobs,” said Clark. “Although these two measures of employment move different directions in some months, they tend to show similar trends over time.”

Nonfarm data is provided by the Bureau of Labor Statistics’ Current Employment Statistics program. According to this survey, only one of Kentucky’s 11 major nonfarm North American Industry Classification System (NAICS) job sectors experienced employment growth from the previous month while eight decreased and two were unchanged.

The professional and business services sector led the declines—losing 2,700 positions from May 2018 to June 2018 and 1,800 jobs since June 2017. The decrease from May to June occurred primarily in the administrative and support and waste management subsector, which lost 2,600 from May to June. Employment in professional, scientific and technical services was down 100 jobs in June.

Construction employment fell by 300 jobs from May 2018 to June 2018, a loss of 0.4 percent. Over the past 12 months, construction employment was down by 400 positions or 0.5 percent.

Kentucky’s, trade, transportation and utilities employment fell by 300 jobs in June 2018. This sector was up 10,600 positions or 2.6 percent from June 2017 to June 2018. From May 2018 to June 2018, wholesale trade added 100 positions; retail trade lost 800 positions; and transportation, warehousing and utilities gained 400 positions.

The financial activities sector declined by 200 jobs from May 2018 to June 2018, a decrease of 0.2 percent. This sector also lost 200 jobs since last June. Within the sector, the finance and insurance subsector fell by 200 jobs and the real estate, rental and leasing subsector did not change in June 2018.

Kentucky’s manufacturing sector lost 100 jobs in June 2018. Durable goods manufacturing increased by 700 jobs while nondurable goods manufacturing fell by 800 positions. Employment in Kentucky’s manufacturing sector is down 2,300 since June 2017.

“Revised employment estimates show that the April decrease in manufacturing employment has persisted into May and June,” said Clark. “Manufacturing employment is down about 1 percent from last June.”

The education and health services sector dropped by 100 jobs in June 2018. Within this sector, employment in educational services did not change and health care and social assistance fell by 100 jobs. Employment in education and health services for June 2018 was at the same level as in June 2017.

The government sector fell by 800 jobs in June 2018. Within this sector, federal employment was unchanged. State government employment decreased by 200 jobs and local government employment fell by 600 jobs. Since June 2017, government employment has dropped by 1,500 jobs or 0.5 percent.

Employment in the other services sector dipped by 400 positions in June 2018, but added 500 from a year ago. This represents a growth rate of 0.8 percent from June 2017 to June 2018. Other services includes repairs and maintenance, personal care services and religious organizations.

Employment in Kentucky’s information services sector increased by 300 jobs in June 2018. This sector has decreased by 400 jobs or 1.7 percent since June 2017. The industries in this sector include traditional publishing as well as software publishing; motion pictures and broadcasting; and telecommunications.

The leisure and hospitality sector was unchanged from May 2018 to June 2018. Within this sector, a 200-job gain in the accommodations and food service subsector was offset by a loss of 200 jobs in arts, entertainment and recreation. Since June 2017, leisure and hospitality has lost 1,500 positions or 0.8 percent.

Employment in Kentucky’s mining and logging sector did not change from May 2018 to June 2018. Employment in this sector is up 100 positions since June 2017.

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.

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