For the third consecutive month, Kentucky's unemployment rate remained less than 10 percent and continued to drop. The unemployment rate was 9.5 percent in July, down from 9.6 percent in June and 9.8 percent in May.
While the state's "economy continued to show signs of improvement," the reasons weren't all positive, said Justine Detzel, chief labor market analyst for the Office of Employment and Training.
The labor force that the rate measures declined because "individuals who have faced long-term unemployment are becoming discouraged and dropping out," she said.
The state continued to lag the national rate, which was 9.1 percent in July, down from 9.2 percent in June.
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In July, the state gained 6,200 non-farm jobs across five of the 11 major economic sectors. Five other sectors saw declines, and one stayed the same.
The most job increases came in the professional and business services sector, which soared by 4,800 positions because of "expansions at a call center and a technical support center, and the openings of several data centers and a call center," Detzel said in a statement. The state does not identify businesses in releasing unemployment data.
Manufacturing added 2,800 jobs, the eighth month in the past year that the number of industrial workers has increased.
Detzel attributed the growth to expansions at automotive parts plants, a construction crane producer and an appliance manufacturer.
The leisure and hospitality sector added 1,200 jobs, primarily in hotels and restaurants as "consumers are loosening their purse strings and opening their wallets to splurge more on restaurants and travel," Detzel said.
Other sectors adding jobs were educational and health services (600) and mining and logging (100).
The most job losses came in the construction sector, which shed 1,300 positions because of weakness in heavy construction and residential home building.
The trade, transportation and utilities sector lost 1,000 jobs. Other sectors losing jobs were other services (400), financial activities (400) and government (200).
Employment in the information sector was flat.