July Labor Report Shows Positive Long-Term Trends

TOPEKA, Kan. – In the July Labor Report, private sector employment and nonfarm jobs both showed increases since one year ago with significant increases in some industries.

Kansas gained 22,100 private sector jobs since July 2011, a 2 percent increase. Nonfarm employment grew by 19,100 jobs since one year ago, a 1.4 percent gain.

Compared to June 2012, the private sector increased by 2,600 jobs, or 0.2 percent. Nonfarm employment decreased by 16,900 jobs since one month ago, a 1.2 percent decrease mostly caused by a seasonal decline in government jobs at educational institutions.

"Private sector job growth is the encouraging note in this report. Contraction of the labor force and its impact on the unemployment rate is worthy of our attention," stated Secretary of Labor Karin Brownlee.

Seven of the 11 major industries reported job gains since July 2011. Healthcare and social assistance gained 5,300 jobs, a 3.2 percent increase, while heavy and civil engineering construction increased by 2,500 jobs, a 24.3 percent growth.

Six of the 11 major industries saw gains from one month ago. Professional and business services grew by 2,200 jobs, a 1.4 percent increase. Construction added 1,900 jobs, a 3.4 percent gain.

"In July, the size of the labor force contracted by more than 6,100 people. Nearly all of these people came from the ranks of the employed to no longer being part of the labor force," Tyler Tenbrink, Labor Economist, said. "This is a trend that surfaced early in 2012 and has persisted. The major age group contributing to this trend is the group of workers age 55 and over."

Many of the above workers leaving the labor force gave the answer that "they do not want a job now" when surveyed. This decline in the civilian labor force affected the unemployment rate.

The seasonally adjusted unemployment rate in Kansas was 6.3 percent, down from 6.7 percent one year ago and up from 6.1 percent in June 2012. The non-adjusted unemployment rate was 6.7 percent, down from 7 percent in July 2011 and up from 6.2 percent one month ago.

The August 2012 Labor Report will be released on September 21, 2012. For more information, visit www.dol.ks.gov Follow KansasDOL on Twitter and Facebook.