Recession leaves Kentucky with fewer jobs

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By Jennifer Hilinski

Kentucky’s jobless rate in June was close to topping the highest unemployment rate the state has seen in over 26 years.

Kentucky’s unemployment rate reached 10.9 percent in June 2009, according to the Office of Employment and Training. The unemployment rate marks the highest it has been since August 1983, at a rate of 11.1 percent.

In June 2009, an estimated 226,122 Kentuckians were jobless, which is up 96,338 from the 129,784 who were unemployed in June 2008. The number of people out of work has increased from 4.5 percent to 6.4 percent recorded last June.

The employment data used to determine the number of working Kentuckians comes from a survey of employers each month, while the unemployment data is based on a survey of households, said Dr. Justine Detzel, the chief labor economist at the Office of Employment and Training. Detzel said the rise in unemployment reflects the ongoing recession, which began in December 2007.

“In June 2009, Kentucky’s economy continued to deteriorate as nearly every sector endured job losses,” Detzel said.

People working in the manufacturing business have been hit the hardest, Detzel said.  The manufacturing sector has suffered the biggest employment decline and its downturn continues to hurt the economy.

The trade, transportation and utilities sector now has 1,700 fewer employment positions due to the conservative spending by consumers. Kentucky’s trade, transportation and utilities sector is the largest in the state and creates jobs for nearly 366,900 employees. In the last year, the jobs available in this industry have declined by nearly 16,000.

“This sector continued to stumble as weak demand for products caused cutbacks at wholesalers and transportation companies in June 2009,” Detzel said.

The fall in the transportation, warehousing and utilities industry has produced layoffs and relocations at air transportation businesses, freight trucking enterprises and shipping companies.

This news is not exactly comforting for those UK students entering the job market in the near future. Data gathered in May 2009 shows the unemployment rate in the Lexington area as 8.3 percent, while Fayette County experienced an unemployment rate of 7.7 percent.

UK students who will soon be looking for a job in the real world should make use of the opportunities around them, Detzel said.

To better prepare for the risk of layoffs, Detzel advised Kentuckians to seek training in careers likely to see continued job growth. By offering a well-built résumé and improving work related skills, people will beat out their competitors and become a better prospect to employers.

“To aid in their job search, Kentuckians should utilize all resources available including career centers which offer job search banks, résumé writing assistance and job skill tests,” Detzel said.