The August jobs report from the Bureau of Labor Statistics showed that the United States gained 315,000 jobs in August, while the unemployment rate rose slightly to 3.7%.
The positive job report reflects a similar trend in Kentucky, where the state is still recovering from the COVID-19 pandemic. The unemployment rate has been 3.7% for June and July.
In a report from the Kentucky Center for Economic Policy, the state’s economy has been boosted by federal pandemic aid that has led to a fast recovery. Meanwhile, a tight labor market has driven up wages and offered better job opportunities to Kentuckians.
“Despite these gains, hardworking Kentuckians still find it difficult to make ends meet and provide for their families,” the report reads. “Job quality and opportunities lag behind for some workers, including women, Black Kentuckians, those in the public sector and rural residents.”
Further, it says that rising prices due to inflation are eating away at these gains. The federal government is also raising interest rates making a recession likely in the future. The report says that wages need to continue to rise to meet demand.
“Even with recently rising wages, typical pay in Kentucky is not sufficient to adequately meet a family’s financial needs,” the report reads.
While the economy has gained traction, it has been uneven. Starting in March 2020 and ending in April, Kentucky lost 294,900 jobs, according to the report.
“That decline was deeper and faster than any previous downturn in Kentucky by a wide margin,” the report reads. “Yet, the recovery has also been rapid by historical standards, with the state averaging 6,200 net new jobs a month since July 2020 and putting us on pace to return to pre-pandemic levels of employment much faster than the previous two downturns.”
Gov. Andy Beshear has taken a lot of credit for the recovery in Kentucky. In his State of Kentucky address touting the economic achievements of his administration. He regularly travels throughout the state to celebrate new business openings.
“I reported a 14.6% yearly growth in the general fund that is the highest growth in revenue since fiscal year 1991,” Beshear said at a press conference in July. “That’s the highest growth in 31 years. General fund receipts totaled $14.7 billion, resulting in a surplus that, by the time we close the books, will be over a billion dollars. That is the second highest surplus the state has ever seen.”
But Republicans are also taking credit for the positive economic growth in the state. They hold super majorities in both the House and the Senate. During the 2022 legislative session, they passed legislation that will lower the income tax in Kentucky. A move they expect to further bolster the state’s economy.
“It is no coincidence that recent years have brought about record breaking economic investment to the commonwealth,” said Sen. Chris McDaniel (R-Ryland Heights) in a release. “This began with the implementation of business-friendly policies in 2017 and picked up momentum with 2018’s comprehensive tax reform. Our commitment to the taxpayers, who make state government operations possible, is to keep our foot on the gas and more money in their pockets.”
