Home > Kentucky > As Employment Grows, Unemployment Drops

As Employment Grows, Unemployment Drops

Screen Shot 2016-05-25 at 10.34.51 AMThere isn’t always a direct correlation between  a rise in employment and a decrease in unemployment, especially with the United States economy during the last eight years or so. We have seen dips in the unemployment rate even while people employers shed jobs.

How does that happen? Following the economic crash of 2007 and the colossal bailouts of the banking and automobile industries, there wasn’t an accompanying growth in economic activity. Consequently, millions of Americans simply gave up looking for jobs. The labor force participation rate has not been worse since 1954.

The good news for the Kentucky economy is that in spite of an increase in 32,000 people in the job market—that is, people looking for jobs again, people moving to Kentucky, and all other Kentuckians available for work—there has been a corresponding increase in jobs available. Translation: More paychecks are being issued to Kentuckians today than was the case six months ago.

The chart above shows a steep rise in unemployment during the last few months of the Beshear administration, and a drop that started soon after the start of the Bevin administration.

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Categories: Kentucky
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