Unemployment rate is up in KY; what this really means

Workforce expansion drives unemployment rate up slightly, Experts say it signals positive economic trends

FRANKFORT, Ky (ABC 36 NEWS NOW) — New data from the U.S. Bureau of Labor Statistics reveals a modest rise in Kentucky’s unemployment rate, climbing from 4.6% to 4.7% in recent figures. Despite this uptick, the state is witnessing a notable increase in its labor force.

“Trends that we’ve been seeing over the last few months, actually what we’re seeing is we have more people working. The reason the unemployment rate is increasing is because we have more people coming into the labor market. As more people are coming into the labor market we’re seeing more people who are spending a time period being unemployed, and that’s pushing up the numbers,” said UK Director for the Center for Business and Economic Research, Michael Clark.

The unemployment rate in Kentucky has seen a slight increase compared to the same period last year when it stood at 4.2%. However, this percentage rise does not necessarily reflect a decline in employment levels.

According to the Kentucky Center for Statistics, over 6,000 individuals entered the labor market this month. Of these new job seekers, more than 4,000 have found employment. This influx contributes to the state’s total labor force, which now encompasses approximately 2 million Kentuckians.

Meanwhile, some legislators hope to see the workforce participation continue to grow.

“But that workforce participation, we’ve got 280,000 people that we can invite into that workforce, at least 280,” said State Senator of District 24 Shelly Funke Frommeyer.

Nationally, the unemployment rate has also increased to 4.3%, as the Bureau of Labor Statistics reported. While Kentucky’s rate is slightly above the national average, experts view this as reflecting a more inclusive and expanding workforce.