Employment and Unemployment. The statewide unemployment rate was 4.1 percent in December 2006, down from 4.3 percent in 2005.

Nonfarm Wage and Salary Employment. Kansas non-farm wage and salary employment slipped to 1,358,800 in December, a net loss of 400 from November. Construction fell 1,100 due to inclement weather. Manufacturing dropped 700 with losses throughout durable goods. Downturns primarily in recreation firms led to a decline of 400 in leisure and hospitality. Government lost 400 with the release of election workers at the local level. Educational and health services receded 300, with decreases spread throughout the sector. Other services slippe d 200. In contrast, the trade, transportation and utilities sector was 1,900 higher than the previous month, largely due to seasonal expansion in retail trade. Information increased 300 with upturns at printing firms. Employment in the natural resources and mining sector added 200 with growth in mining. Financial activities gained 200 with additions mostly in banking firms. Small upturns at temporary employment agencies added 100 to professional and business services.

Over the Year Changes. The number of nonfarm payroll jobs in Kansas rose by 11,300 from December 2005 to December 2006. Government was 5,300 higher with most of the increase at the local level. An expansion of 1,800 in professional and business services was largely due to gains at temporary employment agencies. Employment in the leisure and hospitality sector climbed 1,700 with growth in accommodations and food services establishments. Construction advanced 1,600, as favorable weather left workers on the job longer this year. An addition of 900 in manufacturing was from more jobs primarily in transportation equipment manufacturing in durable goods. Educational and health services advanced 800 with more jobs at hospitals. Other services gained 500. Employment in natural resources and mining added 400. Increases in insurance firms were partially offset by downturns in real estate, leaving financial activities with a 200 gain. Since December 2005, information dropped 1,500 with cutbacks throughout the sector. Losses primarily in trucking firms were partially offset by additions in wholesale and retail trade leaving the trade, transportation and utilities sector with a net loss of 400.

Consumer Price Index.The U.S. Consumer Price Index moved up by 0.1 percent from November to December 2006. Food and beverage costs rose by 0.1 percent over the month with the largest increase in the price of food away from home. The housing sector also edged up by 0.1 percent. A drop in the cost of lodging away from home couldn't offset increases in owners' equivalent rent of primary residence and the price of gas and electricity. Apparel costs continued to move down by 2.5 percent in December. This was the second consecutive decline in a three-month cycle. A jump in price of gasoline forced transportation costs to increase by 0.9 percent after declining for the past four months.

Insured Unemployment. The average weekly insured unemployment rate in Kansas for the month of December 2006 was 1.4 percent. This was up from 1.2 percent for November 2006 and down from 1.6, which was the average rate one year earlier. The number of initial claims which were filed at Kansas unemployment offices rose 38.8 percent from last month. This activity was 5.0 percent below that of a year ago. The reserve fund balance at the end of December was $604.1M compared to $612.3M last month. A year ago the reserve fund balance was $448.4M.