Labor shortages, inflation stalling recovery, Chamber’s quarterly report shows
FRANKFORT, Ky. (WTVQ) —Kentucky’s economic recovery still has a long way to go, as labor force shortages and inflation create new challenges and threaten to stall forward momentum, according to the Kentucky Chamber’s new quarterly economic report.
Produced in partnership with the University of Kentucky’s Center for Business and Economic Research, this new report marks the third quarterly update from the Chamber in 2021.
The reports are designed to provide business leaders and policymakers with reliable snapshots of the progress of Kentucky’s economic recovery from the COVID-19 pandemic.
Highlights from the new report include:
- The COVID-19 recession began in March 2020 and ended in April 2020 as employment and economic output began to improve, according to official sources.
- Kentucky’s labor force declined slightly between March and June 2021.
- Kentucky’s non-farm employment was up 5,800 jobs during the 2nd quarter of 2021.
- Inflation increased between April and July 2021, but at this point the primary causes appear to be related to supply-chain and labor force issues that are likely to be temporary.
“In times of uncertainty and unpredictability, reliable and accurate information is more important than ever. That is exactly why the Chamber partnered with the University of Kentucky’s Center for Business and Economic Research to produce these quarterly reports on the Commonwealth’s economic recovery,” said Kentucky Chamber President & CEO Ashli Watts. “Business leaders and policymakers should closely review the contents of this new report and use it as a resource to make informed decisions to support our economic recovery.”