Kentucky chamber report shows state regained nearly two-thirds of jobs lost
(The Center Square) – A report released Thursday from the Kentucky Chamber of Commerce and the Center for Business and Economic Research at University of Kentucky shows the state has recovered nearly two-thirds of the jobs lost during the early stages of the COVID-19 pandemic.
That was one of the notable figures from the first Kentucky Economic Update, a report the organizations plan to release on a quarterly basis.
In a statement accompanying the report, Kentucky Chamber President and CEO Ashli Watts said the purpose behind the reports is to help lawmakers make informed policy decisions to hasten the recovery.
“Our economy will look different post-recovery, as business sectors have shifted and consumer habits have evolved,” she said. “In a time of such transition, we must make sure Kentucky is a place that attracts growth, talent, and the job creators that will lead us into the future.”
The state’s employment figures for December 2020 were down 5.2 percent from the year before, the report indicated. In addition, Kentucky has recovered 65 percent of the jobs it lost at the start of the crisis.
The report shows fewer Kentuckians are seeking work. The state’s 6% unemployment rate in December is comparable to its neighboring states and below the national rate of 6.7%.
Yet, Kentucky’s employment-to-population ratio is just 54.1%. In border states, the ratio is closer to 60% and the national average is 57.4%. Meanwhile, the state’s 57.5% labor participation rate is four points lower than the national average. That’s the sixth-lowest figure in the state.
Kentucky’s gross domestic product increased at an annual rate of 41.2% in the third quarter of 2020. That outperformed the nation, which saw 33% growth, according to the U.S. Bureau of Economic Analysis. The state figure comes on the heels of a second quarter drop-off of 34.5%.
The state’s exports are still recovering. Since falling nearly 55% in April, businesses in the state saw the amount of goods shipped abroad down just 18% in November.
“While the state’s economy is improving, there is still a high degree of uncertainty associated with the pace of recovery,” said Michael W. Clark, the director for UK’s Center of Business and Economic Research and an associate professor in the Gatton College of Business and Economics. “Employment growth slowed in recent months and fell in December as cold weather and reduced capacity for in-door dining caused restaurants and other hospitality businesses to reduce their payrolls again.”
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