Kentucky's unemployment rate rose to 10 percent in August, a month after it had fallen below that threshold for the first time since February 2009.
"Kentucky's economy is struggling to mount a sustained recovery as consumers keep a tight rein on spending," said Justine Detzel, chief labor market analyst for the state Office of Employment and Training. "Faced with a stagnant labor market, sluggish wage growth and declining wealth, households are saving more and spending less on discretionary items."
Though the jobless rate is up from 9.9 percent in July, the August rate of 10 percent was down from 10.8 percent in August 2009. The state's unemployment rate continued to outpace the national rate of 9.6 percent.
Seven of the 11 major industries that are tracked showed employment decreases in August. Of the four that showed growth, the most — 700 added jobs — came in the leisure and hospitality sector, as a new hotel and numerous restaurants opened. The state does not identify employers in releasing the monthly statistics.
Other gains came in the manufacturing sector, which saw 400 jobs added as a major manufacturer recalled temporary workers and an automotive plant rehired workers.
Other sectors gaining in jobs were construction (100) and information (100).
The sector with the most jobs lost was trade, transportation and utilities, which declined by 2,800 positions.
Employment in the government sector fell by 1,700 jobs, while the professional and business services sector dropped by 1,500 positions.
Other sectors losing jobs were educational and health services (1,200), financial activities (700), other services (200), and mining and logging (200).