OPINION: Kentucky's participation rate still lagging
In Kentucky, the participation rate is 7th lowest in the U.S. at 57.6 percent according to December Federal Reserve Economic Data (FRED) showing significantly lower labor market activity than other states. The low participation rate is slightly below the pre-pandemic rates and shows Kentucky’s citizens are not taking advantage of opportunities to get back into the workforce, and this is having a serious consequence on Kentucky’s economy.
However, recent unemployment data shows we are seeing record unemployment numbers. According to Forbes, unemployment has remained relatively low over the past year despite concerns about an oncoming recession. Low unemployment could be partially due to a low labor participation rate. This could be a bad sign for the economy moving forward.
In South Central Kentucky, there are plenty of job opportunities available for those seeking employment. The South Central Kentucky Workforce Development Board and The Bowling Green Area Chamber of Commerce in conjunction with the Kentucky Career Centers have taken the lead implementing initiatives to help businesses connect active job seekers with those jobs.
The Kentucky General Assembly passed House Bill 4 during the 2022 legislative session and it went into effect in January of this year. House Bill 4 will modernize several key parts of the current benefit program to support laid-off workers and encourage rapid re-employment.
Key parts of the bill include:
- Increasing the work search requirement to include five weekly activities, at least three of which must be applying or interviewing for a job. The definition of work search activities has also been revised to include networking events, job shadowing, and participating in skills or jobs training.
- Establishes a “No-Show” reporting system for employers to address the issue of candidates who fail to show up for interviews or refuse an offer of suitable work.
- Extends benefits by up to five weeks if the claimant is enrolled in an approved job training or certification program.
- Establishes a “work-share” provision that gives employers an alternative to lay-offs.
- Indexes the maximum duration of benefit weeks to Kentucky’s average unemployment rate with a range of 12 weeks when the rate is 4.5% to as much as 24 weeks when the rate is 10%.
(Source GLI Advocacy)
Thanks to the The South Central Kentucky Workforce Development Board, The Bowling Green Area Chamber of Commerce, the Kentucky General Assembly and other concerned organizations for taking a proactive approach to help its citizens become independent and re-enter the workforce.
Kentucky must continue to focus on getting our citizens back in the workforce and increase the participation rate, and drive economic growth. When Kentucky citizens have the opportunity to work, they will be able to create a better future for themselves and their families, as well as stimulate Kentucky’s economy.
-Jim DeCesare
Jim DeCesare is the Senior Partner of The DeCesare Group, LLC, a business solutions, strategies, and consulting firm based in Bowling Green, KY. Jim has over 30 years of business, economic, and organizational development, operations, and public relations experience. He also served 14 years in the Kentucky House of Representatives.
Jim was honored twice by the Kentucky Chamber of Commerce with their “Going to Bat for Business” Award, and in 2019 the Kentucky Association of Economic Development (KAED) inducted Jim into the KAED Hall of Fame for his work in promoting Economic Development initiatives in Kentucky.
Jim has his undergrad and MBA from Western Kentucky University.
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