• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Kentucky Center for Economic Policy

Kentucky Center for Economic Policy

      

  • About Us
  • Press Room
  • Donate

Research That Works for Kentucky

  • Topics
    • Budget & Tax
    • Criminal Justice
    • Economic Security
    • Education
    • Health Care
    • Jobs & The Economy
  • Types
    • News
    • Op-Ed
    • Research

      

  • About Us
  • Press Room
  • Donate

Privacy Policy Terms & Conditions Sitemap

Analysis

Budget Cuts Lead to Job Losses

Jason Bailey | June 8, 2012

News of layoffs at the University of Kentucky follows stories of pending job loss at the Fayette County health department. Both announcements can be linked to the 11 rounds of cuts the legislature has made to the state budget, which have reduced funding for many state functions by 15-30 percent or more.

Job growth in the economy remains slow, and budget cuts at all levels are making matters worse. Those cuts are resulting in the direct elimination of jobs—both through layoffs and by agencies and organizations not hiring for open positions. More jobs are lost as the newly unemployed spend less money in local restaurants and stores. What’s more, with public sector layoffs Kentucky erodes vital services needed to grow the economy, including education.

More On Budget & Tax: Kentucky Can Reform Property Taxes While Protecting Residents, Schools and Other Public Services

Kentucky lost a big number of public sector jobs when the recession hit, but then slowly gained back some of those jobs from 2009-2011 as the federal Recovery Act helped fill the state funding gap. When that money ran out, and the legislature refused to consider new revenues as part of the budget, we began to see losses in state and local government jobs.

That can be seen in the figures below, which show total state and local government jobs in Kentucky and as a share of the working age population. The state lost 3,500 state and local government jobs between March 2011 and April 2012.

gov employment

share gov employment

Source: Author’s analysis using Bureau of Labor Statistics Current Establishment Survey data provided by the Economic Policy Institute.

 

Print Friendly, PDF & Email

FacebookTweetLinkedInEmail

Primary Sidebar

Get KyPolicy news updates in your inbox

Sign Up

Sidebar

Perspectives

Wendell Berry’s Death Should Be His Revival

This Fourth of July, Patriotism Includes Honoring Our Immigrant Neighbors

Threat to the Lee Specialty Clinic Revealed the Heroes at Work

How to Turn the Boomer Retirement Wave Into a Generational Opportunity

There Is a Choice Hidden in the Pages of the Next State Budget

Other Budget & Tax Items

kenucky property tax

Analysis

Kentucky Can Reform Property Taxes While Protecting Residents, Schools and Other Public Services

How Data Centers Could Avoid Paying Local Taxes

Analysis

How Data Centers Could Skirt Local Taxes

kentucky data center tax breaks

Analysis

Is Kentucky About to Give Billions in Tax Breaks to Data Centers?

Ky. Policy

Footer

Research that works for Kentucky

433 Chestnut Street, Berea, KY 40403

859-756-4605

General information and inquiries: info@kypolicy.org

     

Help us make the facts free and accessible to everyone. That’s how Kentucky will thrive.

Donate

  • Topics
    • Budget & Tax
    • Criminal Justice
    • Economic Security
    • Education
    • Health Care
    • Jobs & The Economy
  • Work
    • News
    • Op-Ed
    • Research
  • About Us
  • Press Room
  • Contact

Get KyPolicy news updates in your inbox

Sign Up

Privacy Policy Terms & Conditions Sitemap

made by P&P
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.