Economic impact of unemployment in Kentucky

Macro

Unemployment rates throughout the United States vary depending on the region and the types of industries that conduct business in a particular region. Unemployment rates have a significant effect upon regional economics and the national economy. The purpose of this discussion is to investigate the unemployment rate in Kentucky and to discuss the impact of unemployment on the economy.

Kentucky Unemployment Rate

In recent months the Kentucky unemployment rate has fallen. According to "Kentucky unemployment dropped in August" the Kentucky jobless rate dropped in the month of August when compared to July. The article explains that more than 50% of industry sectors gained jobs ("Kentucky unemployment dropped in August"). In addition the seasonally adjusted jobless rate declined to 5.8% from 6.3% for the prior month ("Kentucky unemployment dropped in August"). However this rate is still higher than the national average of 4.7%.

The article also reports that the manufacturing sector realized the greatest addition of jobs from July to August with 5300 jobs added ("Kentucky unemployment dropped in August"). In addition, the public sector added 3,000 jobs in the month of August ("Kentucky unemployment dropped in August"). The sectors with the fewest jobs added in the month of August were the information sector where rates were unchanged and the education, health and construction sectors had fewer jobs ("Kentucky unemployment dropped in August").

Another article reports that unemployment rates decreased in 75 counties in Kentucky in the year between August 2005 and August of 2006 (Cracraft). In addition unemployment rates increased in 37 counties and remained constant in eight counties (Cracraft). In addition in August of this year, two counties had an unemployment rate equal to or above 10% compared to three counties that recorded 10% or higher in August of last year (Cracraft).

Conclusion

The purpose of this discussion was to investigate the unemployment rate in Kentucky and to discuss the impact of unemployment on the economy. We found that the unemployment rate in Kentucky has fallen over the last few months but is still above the national average. We also found that unemployment can have both negative and positive effects on the economy.