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SubscribeKentucky’s seasonally adjusted preliminary unemployment rate for September 2016 was 5 percent from a revised 4.9 percent in August 2016, according to the Office of Employment and Training (OET), an agency of the Kentucky Education and Workforce Development Cabinet.
The preliminary September 2016 jobless rate was 0.4 percentage points lower than the 5.4 percent rate recorded for the state in September 2015.
The U.S. seasonally adjusted jobless rate for September 2016 was 5 percent, according to the U.S. Department of Labor.
Labor force statistics, including the unemployment rate, are based on estimates from the Current Population Survey of households. It is designed to measure trends rather than to count the actual number of people working. It includes jobs in agriculture and those classified as self-employed.
In September 2016, Kentucky’s civilian labor force was 1,981,794, an increase of 12,605 individuals compared to the previous month. Employment was up by 10,571, and the number of unemployed increased by 2,034.
“The sharp increase in the labor force signals that more workers are returning to the workforce as they see the employment situation improving. For the last five months our unemployment rate has hovered around 5 percent, which is effectively full employment,” said economist Manoj Shanker of the OET. “Though there has been an uptick in labor force participation, Kentucky is still ranks near the bottom of the stack in participation rates.”
In a separate federal survey of business establishments that excludes jobs in agriculture and people who are self-employed, Kentucky’s seasonally adjusted nonfarm employment increased by 11,500 jobs in September 2016 from the month before and was up 25,800 positions since September 2015.
“Nonfarm employment, or what’s normally called the jobs number, is at a historical high. The September report delivered an unexpected boost to the flat situation we have experienced so far in 2016, “said Shanker. “The biggest increase was in professional and business services which was buoyed by jobs in temp services.”
Nonfarm data is provided by the Bureau of Labor Statistics’ Current Employment Statistics program. According to this survey, eight of Kentucky’s 11 major nonfarm North American Industry Classification System (NAICS) job sectors registered gains in employment, while two declined and one stayed the same from the previous month.
Employment in Kentucky’s professional and business services increased by nearly 3 percent with the addition of 6,200 jobs in September 2016 from a month ago. Year-over-year there was a gain of 6,000 jobs. This category includes establishments engaged in services that support the day-to-day activities of other organizations, including temporary employment services and payroll processing.
“Typically, when businesses plan to expand they test the waters by hiring more temp employees. The robust gain in temp hiring—after a nine-month decline—is reassuring,” said Shanker.
The leisure and hospitality sector gained 2,500 jobs in September 2016 from a month ago. Since September last year, the sector has expanded by nearly 2 percent with the addition of 3,500 jobs. This sector includes arts, entertainment, recreation, accommodation, and food services.
Kentucky’s trade, transportation, and utilities sector expanded by 1,200 jobs in September 2016 from a month ago. This is the largest sector in Kentucky with nearly 400,000 jobs accounting for one-fifth of all nonfarm employment. Since September 2015, this sector has expanded substantially with a gain of 9,300 jobs. Retail trade added 1,000 jobs over the previous month, and gained 7,600 jobs over the year, while transportation and warehousing added 700 jobs from a month ago and increased 2,400 positions over the year.
The manufacturing sector rose by 700 jobs in September 2016 compared to the previous month. Over the year, however, manufacturing employment declined by 1,300. Durable goods account for two-thirds of the manufacturing sector and grew by 1.5 percent from a year ago with the addition of 2,400 jobs, while nondurable goods lost 3,700 jobs over the year.
The government sector, which includes public education, public administration agencies and state-owned hospitals, increased by 600 jobs in September 2016 but declined by 2,100 positions compared to last September. Almost all of the month-to-month gain was in federal employment.
Employment in educational and health services sector was up by 500 positions in September 2016, and had a robust gain of 10,600 jobs, or 4 percent, from a year ago. Health care jobs account for about 15 percent of all nonfarm employment in Kentucky and decreased by 200 positions for the month, but showed strong gains over the year with the addition of 12,000 jobs.
The financial activities sector expanded by 300 jobs in September 2016 from a month ago. The sector has added 4,600 jobs since last September.
Mining and logging sector jobs increased by 100 in September 2016 from a month ago. The industry has declined by 2,300 positions from a year ago.
Employment in the information sector remained unchanged in September 2016. This segment has declined by 900 positions from a year ago. The industries in this sector include traditional publishing as well as software publishing; motion pictures and broadcasting; and telecommunications.
The construction sector dropped by 200 jobs in September 2016 from a month ago. Since September 2015, construction jobs have decreased by 1,800 positions.
Employment in the other services sector, which includes repairs and maintenance, personal care services, and religious organizations, decreased by 400 positions in September 2016 from a month ago. This sector has increased by 200 jobs from a year ago.
Civilian labor force statistics include nonmilitary workers and unemployed Kentuckians who are actively seeking work. They do not include unemployed Kentuckians who have not looked for employment within the past four weeks.
Kentucky’s statewide unemployment rate and employment levels are seasonally adjusted. Employment statistics undergo sharp fluctuations due to seasonal events, such as weather changes, harvests, holidays and school openings and closings. Seasonal adjustments eliminate these influences and make it easier to observe statistical trends. However, because of the small sample size, county unemployment rates are not seasonally adjusted.
Learn more about the Office of Employment and Training at http://www.kylmi.ky.gov/.
Responding to new contracts for its vehicle hose assemblies, Yokohama Industries Americas Inc. plans to hire 134 full-time employees and invest $5.2 million in new equipment at its plant in Versailles, Gov. Matt Bevin announced today.
“This expansion by Yokohama and the new employment it will create further strengthens the Commonwealth’s 
automotive industry. This is a great day for Kentucky,” Gov. Bevin said. “We are grateful for Yokohama’s increased investment in Kentucky and look forward to their continued success.”
The project will add two new production lines at Yokohama’s Hose Division plant at 105 Industry Drive. The facility currently employs about 300 people producing and distributing hose assemblies for vehicle air conditioning, power steering and transmission oil cooler systems.
“Yokohama Industries Americas Inc. appreciates the great support provided by Kentucky’s Cabinet for Economic Development, the City of Versailles and Woodford County. Yokohama is very pleased to work with strong government team focused on expanding the automotive business in Kentucky and creating new jobs in the region,” said company President Yasu Tajima.
Yokohama Industries America is a subsidiary of Tokyo-based Yokohama Rubber Co. Ltd., which was founded in 1917 as a joint venture between Yokohama Cable Manufacturing and B.F. Goodrich Co. The Versailles facility, one of two Yokohama plants in the city, opened in 1989.
Sen. Julian Carroll, of Frankfort, said the region’s many assets will continue to make the Yokohama plant a success.
“Congratulations to Yokohama on its upcoming expansion. Versailles, Woodford County, and the surrounding region welcome the growth that will be generated and stand ready with a skilled workforce to meet any future needs,” Sen. Carroll said.
Rep. James Kay, of Versailles, said community members are proud to have Yokohama as part of the business community and Woodford County family.
“Yokohama’s decision to expand in our community is further proof that Woodford County is open for business,” Rep. Kay said. “Our people are our biggest asset and I am pleased that Yokohama recognizes our valuable workforce and is willing to invest and create more jobs in Versailles. Woodford County is an ideal place to do business. I’m proud to help grow new jobs and build our economy as we attract new business and industry to our community while helping those already here grow and thrive.”
Woodford County Judge-Executive John Coyle praised Yokohama for its expansion and ongoing commitment.
“Yokohama has long been an important part of our corporate family and we are delighted to assist them with this latest expansion,” Judge Coyle said. “Their expansion represents approximately $5 million and 134 new jobs for Woodford County. We want to thank the State of Kentucky’s Economic Development Cabinet and Woodford EDA for their hard work but most of all, Yokohama for their continued confidence in our community and its workforce.”
Versailles Mayor Brian Traugott expressed gratitude for Yokohama’s decision to expand its operations in Versailles.
“This company has been a great corporate citizen over the years,” Mayor Traugott said. “Their decision to invest more speaks volumes about all that our community has to offer and the workforce we have. I want to thank everyone who had a hand in making this possible.”
Yokohama can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. Last year, the Kentucky Skills Network trained more than 84,000 employees from more than 5,600 Kentucky companies.
Gov. Matt Bevin and Labor Sec. Derrick Ramsey today announced the launch of the “Kentucky Trained. Kentucky Built.” apprenticeship campaign at Voestalpine Roll Forming Corporation (RFC) in Shelbyville. They were joined by Lt. Gov. Jenean Hampton; Ray Leathers, Roll Forming Corporation President and CEO; and Micah Craig, Roll Forming Corporation Process Engineer.
This initiative sets forth a goal of helping new program sponsors tap into the potential that apprenticeships have for their workforce needs.
“In our efforts to make Kentucky the manufacturing hub of excellence in America, we recognize the value of apprenticeships and their ability to help us achieve this goal,” said Gov. Bevin. “While a significant number of employers in Kentucky already realize the potential in apprenticeships, this initiative will seek to devote more resources and identify new industries where apprenticeships can play a pivotal role. This will be essential in addressing the workforce needs of employers in the Commonwealth.
“Apprenticeships provide career pathways for those just entering the workforce as well as increased opportunities for those looking to expand their career track. This is why the apprenticeship model’s ‘Grow Your Own’ approach will be a crucial tool for employees and employers alike. The future of workforce development looks bright in the Commonwealth. By re-committing ourselves to fully embracing the power of apprenticeships, we are placing ourselves in the best position to move Kentucky forward,” Gov. Bevin concluded. Continue reading
Action will save Kentucky businesses $34 million annually
Gov. Matt Bevin announced today that the Kentucky Education and Workforce Development Cabinet will suspend the current unemployment insurance (UI) surcharge for contributing employers, effective immediately.
The state’s approximately 91,000 employers have been paying a surcharge assessment — currently 0.21 percent of their taxable wage base of $10,200 per employee — since January 1, 2014.
Cabinet officials estimate that this action will save Kentucky companies as much as $34.2 million annually.
“Our administration is committed to making Kentucky the best place in the nation to do business,” said Gov. Bevin. “Whether through sweeping initiatives like Red Tape Reduction or incremental steps like this one, we are doing everything we can to help our employers thrive and grow.”
During the Great Recession, the state’s UI trust fund balance fell far short of the amount required to pay benefits to unemployed individuals.
Beginning in Jan. 2009, Kentucky — along with roughly half of U.S. states — had to borrow from the federal government to pay UI benefits. Eventually, this borrowing (formally referred to as a Title XII advance) reached nearly $1 billion. Continue reading
Company to invest $36.4 million in move to Northern Kentucky, anticipates creation of 500 Kentucky-resident jobs
Gov. Matt Bevin today announced CTI Clinical Trial and Consulting Services, a global, privately held company providing therapeutic expertise to the pharmaceutical and biotechnology industries, will relocate its headquarters to Covington with a $36.4 million investment projected to create up to 500 Kentucky-resident jobs.
“We are grateful for the decision by CTI to move its headquarters to Northern Kentucky and bring with them hundreds of highly skilled jobs,” Gov. Bevin said. “Our administration and local officials are committed to providing the space and resources needed for CTI to continue its growth in the years ahead. CTI is a recognized leader in the life sciences industry and we are delighted to welcome them to Kentucky.”
CTI plans to move its headquarters from the Cincinnati suburb of Blue Ash, Ohio, closer to the region’s urban center. It will lease about 125,000 square feet in the RiverCenter building. The relocation will help the company consolidate its locations and facilitate future growth.
“We’re thrilled for CTI to be starting a new chapter at RiverCenter,” said Timothy Schroeder, CEO of CTI. “We feel that this location will be a state-of-the-art headquarters for our staff, enabling collaboration and innovation. This site allows us to retain and grow the most talented team in the industry who are helping to develop some of the most innovative life-changing therapies.”
Founded in 1999 by Schroeder and Lynn Fallon, CTI is a global leader in clinical research, working with pharmaceutical and biotechnology companies to plan, manage and analyze clinical trials, a critical step in bringing new drugs, therapies and medical devices to market. The company is therapeutically focused on critically ill patient populations, chronic diseases and unmet medical needs including the areas of regenerative medicine, cell and gene therapy, rare disease, immunology, transplantation and oncology.
CTI has associates in more than 25 countries and has worked on over 2,700 projects across six continents. CTI has contributed to more than 100 new drug and device approvals by regulatory agencies around the world.
Sen. Christian McDaniel, of Taylor Mill, said the company’s relocation and employment growth will serve Northern Kentucky well in the coming years.
“This company’s relocation from Blue Ash to Covington is yet another example of Kentucky’s business-friendly atmosphere and opportunities for economic growth,” he said. “I am excited to welcome CTI Clinical Trial and Consulting Services to Covington and I look forward to their future endeavors in our region.”
Rep. Arnold Simpson, of Covington, said the location of CTI is evidence of the region’s ability to support large-scale business growth.
“This is great news for Northern Kentucky,” Rep. Simpson said. “We are encouraged by CTI’s confidence in the Commonwealth with this significant investment and trust that other corporate leaders will take note. I want to thank CTI for making this decision and bringing these jobs here. We look forward to making their employees feel right at home in Covington.”
Rep. Addia Wuchner, of Florence, chairwoman of the Northern Kentucky Legislative Caucus, said CTI’s move will advance the area’s biomedical industry.
“On behalf of the Northern Kentucky Legislative Caucus, we extend a warm welcome to CTI,” Rep. Wuchner said. “We look forward to a surge in the life sciences industry in our region with CTI’s leadership.” Continue reading
Newly created bond fund to modernize facilities, better equip Kentucky’s workforce
Gov. Matt Bevin and Education and Workforce Development Secretary Hal Heiner today announced the launch of the Kentucky Work Ready Skills Initiative. This new $100 million statewide bond program is aimed at developing a highly trained, modernized workforce in the Commonwealth to meet the needs of employers and promote sustainable incomes for Kentuckians.
“As I travel the state, I hear repeatedly from employers about the shortage of workers with the skills needed to get the job done,” said Gov. Bevin. “Making this problem worse, is the fact that Kentucky’s workforce as a percent of its population is currently one of the smallest in the nation.
“We must work diligently to be more economically competitive and create more jobs. We intend to make Kentucky the manufacturing and logistical center of excellence in America. This will start with having the most highly skilled and well trained workforce in the country. To accomplish this, we will better align our education systems and our workforce needs. This is exactly why we have created the Work Ready Skills Initiative.”
This bond fund infuses resources to expand career and technical education facilities and to upgrade equipment in those schools to current and future industry standards through local partnerships between private industry and educational institutions. The locally driven initiatives will train and educate workers to meet the workforce needs of Kentucky’s employers now and in the future.
“The Work Ready Skills Initiative will bring industry together in partnership with educational institutions like KCTCS (Kentucky Community and Technical College System) to propose workforce training projects that lead straight to jobs,” said Sec. Heiner. “Proposals will be detailed and require industry to come together with the regional community and provide a local source of funds to match the state’s investment.”
The initiative was passed and funded by the General Assembly in the recent biennial budget and will be administered by the Education and Workforce Development Cabinet with support from the Cabinet for Economic Development. Proposals will require at least 10 percent match by local partners. Applications will support locally developed projects that include the participation of a private employer, educational agency and other interested local and regional partners, so that the plan is tailored to the workforce and industry needs of the area. Continue reading
New tech, process improvements to raise product quality in Bowling Green
General Motors Corp. plans to invest $290 million to improve technology and processes at its Corvette plant in Bowling Green, Gov. Matt Bevin announced today.
“GM has a long tradition of commitment to southcentral Kentucky and to producing, in Warren County, the finest sports cars in America,” said Gov. Bevin. “This benefits our entire state, both as a source of pride and as a tremendous contributor to our economy.
“For 35 years, the Bowling Green Assembly Plant has provided jobs to thousands of Kentuckians and to hundreds of suppliers and vendors. We congratulate GM and offer our commitment to lending them support for this project and any others they may undertake in the future,” continued Gov. Bevin.
The $290 million includes a $153 million new project aimed at improving vehicle assembly line processes. Two ongoing projects at the Warren County plant – a $44 million, 36-job capacity expansion of the Performance Build Center and a $439 million investment in a new paint shop and other facility upgrades – increased by about $137 million.
“We are making technology investments that will continue to improve our manufacturing processes and ultimately the quality of our vehicles,” said North American Manufacturing Manager Arvin Jones. “We are putting Corvette customers first by building upon our world-class manufacturing process.”
To encourage the investment and job growth in Bowling Green, the Kentucky Economic Development Finance Authority (KEDFA) in a special meeting in June preliminarily approved GM for up to $3 million in tax incentives through the Kentucky Business Investment (KBI) program. The incentives are based on eligible company investments of up to $153 million and creation of up to 270 jobs over 10 years.
KBI’s performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.
Sen. Mike Wilson, of Bowling Green, noted the impact the announcement will make on one of the state’s target industries. Continue reading
