State, county unemployment rates rise in July

Although most of the economy has reopened following the shutdowns in the spring from the coronavirus pandemic, the state as well as the county continues to see the effects in employment.

While the state and county’s unemployment rate fell in June from the previous month’s, both saw an increase in July according to the numbers recently released by the Kentucky Center for Statistics, an agency of the Kentucky Education and Workforce Development Cabinet.

Ohio County’s unemployment rate for July was 6.4% which is up from the 4.8% reported at the end of June. The rate for this same time last year was 5.6%. The Green River area had an unemployment rate in July of 5.3%.

Kentucky’s seasonally adjusted preliminary July 2020 unemployment rate was 5.7 percent, according to KYSTATS.

The preliminary July 2020 jobless rate was up 1.3 percentage points from June 2020 and up 1.4 percentage points from the 4.3 percent recorded for the state one year ago.

The U.S. seasonally adjusted jobless rate for July 2020 was 10.2 percent, down from 11.1 percent in June 2020, according to the U.S. Department of Labor. The number of unemployed is 6.5% higher than in July 2019.

Unemployment rates were lower in July in 30 states, higher in nine, stable in 11 states and the District of Columbia.

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 1,861,723 in July 2020, a decrease of 58,934 individuals from June 2020. The number of people employed in July decreased by 80,243, while the number unemployed increased by 21,309.

“Estimates of the number of people working in Kentucky have varied more than normal over the past few months. For July, the estimates indicate that fewer Kentucky residents were employed,” said University of Kentucky’s Center for Business and Economic Research Director Mike Clark, Ph.D. “Workers who lost their jobs are considered unemployed only if they are looking for work. Otherwise, they are classified as not in the labor force. As workers lost jobs, both the number of unemployed workers and people who are not in the labor force increased. Kentucky’s official unemployment rate of 5.7 percent only counts unemployed workers who are looking for work. It does not reflect those who have left the labor force.”

Oldham County recorded the lowest jobless rate in the Commonwealth at 4.2 percent. It was followed by Carlisle and Pendleton counties, 4.5 percent each; Cumberland, Hancock, Shelby, Spencer and Washington counties, 4.6 percent each; and Todd and Woodford counties, 4.7 percent each.

Magoffin County recorded the state’s highest unemployment rate at 15.3 percent. It was followed by Harlan County, 12.9 percent; Martin County, 11.1 percent; Letcher County, 11 percent; Leslie County, 10.8 percent; Breathitt County, 10.6 percent; Perry County, 9.8 percent; Floyd County, 9.7 percent; Knott County, 9.4 percent; and Carter, Clay, Elliott and Pike counties, 9 percent each.

Kentucky’s county unemployment rates and employment levels are not seasonally adjusted because of small sample sizes. 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. The comparable, unadjusted unemployment rate for the state was 6.2 percent for July 2020, and 10.5 percent for the nation.