FRANKFORT,
Ky. (March 9, 2023) — Kentucky’s seasonally adjusted preliminary
January 2023 unemployment rate was 3.9%, according to the Kentucky Center for
Statistics (KYSTATS), an agency within the Kentucky Education and Labor Cabinet
(KELC).
The preliminary
January 2023 jobless rate was unchanged from December 2022 but was down 0.1
percentage points from the 4% recorded for the state one year ago.
The U.S. seasonally
adjusted jobless rate for January 2023 was 3.4%, which was down 0.1 percentage
points from December 2022, according to the U.S. Department of Labor.
Labor force
statistics, including the unemployment rate, are based upon estimates from the
Current Population Survey of households. The survey is designed to measure
trends in the number of people working and includes jobs in agriculture and
individuals who are self-employed.
Kentucky’s civilian
labor force was 2,040,230 in January 2023, an increase of 371 individuals from
December 2022. The number of people employed in January increased by 1,442 to
1,961,235 while the number of unemployed decreased by 1,071 to 78,995.
“More of Kentucky’s
residents reported that they were working and fewer reported being unemployed
in January,” said University of Kentucky’s Center for Business and Economic
Research (CBER) Director Mike Clark, Ph.D. “These gains, however, were not
sufficient to affect Kentucky’s unemployment rate, which was essentially
unchanged from December to January.”
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
jumped 8,700 jobs in January 2023 compared to December 2022. Kentucky’s nonfarm
employment was up 44,900 jobs or 2.3% compared to January 2022.
Nonfarm data is
provided by the Bureau of Labor Statistics’ Current Employment Statistics
program. According to the survey, employment increased for seven of
Kentucky’s major nonfarm North American Industry Classification System (NAICS)
job sectors in January 2023, decreased for two, and was unchanged for two.
Employment in
Kentucky’s professional and business services sector added 4,500 jobs or 2% in
January 2023. Employment in the professional, scientific and technical services
subsector was unchanged from December to January. Employment fell by 200 jobs
in the management of companies subsector. The administrative, support and waste
management subsector added 4,700 jobs. Employment in this sector was up by
4,100 jobs or 1.8% since January 2022.
“Employment in
professional and business services recovered some of its losses from the past
two months,” said Clark. “This sector includes temporary employment services,
which could account for some of the monthly variation.”
Employment in
Kentucky’s trade, transportation and utilities sector gained 2,500 jobs from
December to January. Employment was up 11,100 jobs or 2.6% compared to a year
ago. The retail trade subsector gained 100 more jobs from December to January.
Employment was up 1,200 jobs in the transportation, warehousing and utilities
subsector and was also up 1,200 jobs in the wholesale sector.
Construction
employment rose by 1,000 jobs in January 2023 or 1.2% from December and was up
1,700 positions or 2.1% from one year ago.
“Despite
significant increases in mortgage rates over the past year, Kentucky’s
construction firms have so far been able to maintain their employment levels,”
said Clark.
Kentucky’s leisure
and hospitality sector grew by 800 positions from December 2022 to January
2023, a gain of 0.4%. This sector added 6,200 jobs or 3.2% compared to January
2022. Employment in the arts, entertainment and recreation subsector decreased
by 400 jobs from December to January. The accommodations and food services
subsector gained 1,200 jobs in January.
Kentucky’s
educational and health services sector gained 700 positions in January 2023.
Employment in the health care and social assistance subsector contracted by 400
jobs in January. These losses were offset by a gain of 1,100 jobs in the
educational services subsector. Since last January, this sector has grown by
9,100 jobs or 3.2%.
Employment in the
information services sector increased by 200 jobs in January. The industries in
this sector include traditional publishing as well as software publishing;
motion pictures and broadcasting; and telecommunications. The number of jobs in
this sector grew by 1,300 or 6.2% from one year ago.
The other services
sector added 100 jobs in January 2023. This sector had 2,200 more positions
compared to January 2022. This sector includes repairs and maintenance,
personal care services and religious organizations.
Employment in
Kentucky’s manufacturing sector did not change from December 2022 to January
2023. Durable goods manufacturers fell by 400 jobs in January while non-durable
goods manufacturers added 400 jobs. Kentucky’s manufacturing employment was up
9,800 positions or 4% since January 2022.
Employment in
Kentucky’s mining and logging sector was unchanged in January. This sector was
up 800 jobs from January 2022.
The financial
activities sector fell by 200 jobs from December 2022 to January 2023.
Employment declined by 100 jobs in the finance and insurance subsector. The
number of jobs in the real estate, rental and leasing subsector also declined
by 100 jobs from December to January. The financial activities sector decreased
by 700 jobs compared to last January.
Government sector
employment decreased by 900 jobs from December 2022 to January 2023. Employment
was up by 100 jobs in the federal government; down 1,000 positions in state
government; and unchanged in local government. Employment in the total government
sector fell by 700 positions or 0.2% compared to January 2022.
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, due to the small sample size, county unemployment
rates are not seasonally adjusted.
To learn more about
Kentucky labor market information, visit http://kystats.ky.gov/KYLMI.