Unemployment rates rose in May

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June 29, 2009

By AMBER DILLEY The Glasgow Daily Times Mon Jun 29, 2009, 10:43 AM CDT

GLASGOW — After a slight decrease in April, May’s unemployment rates jumped up.

The nation’s, state’s and local counties’ rates all increased.

Nationwide, the non-seasonally adjusted rate grew from 8.6 in April to 9.1 in May.

Kentucky’s rate increased from 9.7 in April to 10.5 in May.

Locally, Barren County’s rate in May was 12.6, Edmonson County’s rate was 13.4, Hart County’s was 10.2, Metcalfe County’s was 14.5 and Monroe County’s was 14.6, all up from April’s rates.

Since January, the unemployment rate has been like a roller coaster — down in January, up in February, down again in March, decreased in April and up again in May.

Part of the cause of the variation could be because companies are choosing to do short furloughs and layoffs instead of major long-term layoffs, said Kim Brannock with the Office of Employment and Training (OET), an agency of the Kentucky Education and Workforce Development Cabinet.

“As far as May goes, you’ve got an influx of people that have graduated and joining the workforce or students trying to find summer work,” Brannock said. “You’ve already got unemployed people looking for work and then adding new graduates to the mix. There’s more people looking than there are jobs. That’s not unusual for this time of the year. What’s different this time is the amount of people already out of work.”

Statewide, the trade, transportation and utilities sectors suffered the largest number of job losses in May as the state’s nonfarm employment decreased by 11,500 workers.

Those sectors lost 4,800 jobs in May.

“Weak demand for products resulted in cutbacks at retailers, wholesalers and transportation companies in May,” said Justine Detzel, OET chief labor market analyst. “As households retrench and rein in discretionary expenditures, retail trade businesses, wholesale trade and transportation enterprises have been forced to cut back.”

The construction sector recorded 2,700 fewer jobs in May 2009.

“This represents the sixth decrease in employment in the last seven months, reflecting debility in the residential construction industry,” Detzel said.

Kentucky’s manufacturing sector lost 1,800 jobs in May.

“Job losses in May were evenly distributed between the durable goods and nondurable goods subsector,” Detzel said. “Employment losses in the durable goods subsector reflect layoffs at automobile manufacturers, the closings of multiple automobile parts factories and a steel fabrication plant closing.

“The durable goods subsector accounted for the majority of the year-over-year employment decrease reflecting the malaise resulting from the automobile slump impacting Kentucky. Consumers, grappling with layoffs, tighter credit conditions and declining household wealth, have developed a reticence to opening their pocketbooks and wallets, choosing instead to postpone purchases of long-lasting manufactured goods such as automobiles.”

A few areas of employment increased their amount of workers in May.

The government sector, which includes public education, public administration agencies and state-owned hospitals, increased by 2,100 positions in May. This sector had 1,700 fewer jobs than in May 2008, however.

The state’s educational and health services sector rose by 900 jobs. This sector includes private and nonprofit establishments that provide either education and training or health care and social assistance.

“General population growth and a longer life expectancy help explain the continued expansion of health care employment,” Detzel said. “In addition, as the baby boom generation ages, there is an increased need for health services.”

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