UK CBER Report Details Impact of COVID-19 on Kentucky’s Economy
LEXINGTON, Ky. (Feb. 3, 2021) — Describing the many ways in which the COVID-19 pandemic affected Kentucky’s economy, the Center for Business and Economic Research (CBER) — the applied economic research branch of the Gatton College of Business and Economics at the University of Kentucky — released its 49th Kentucky Annual Economic Report today.
The report is one of the many ways CBER fulfills its mandated mission as specified in the Kentucky Revised Statutes to examine various aspects of the Kentucky economy. CBER performs research projects for federal, state and local government agencies, as well as for private sector and nonprofit clients nationwide.
The report covers a variety of issues ranging from a discussion of the COVID-19 recession to a comprehensive presentation of agricultural, community, economy, economic security, education, energy, environment, health, infrastructure, innovation, population and public finance factors affecting Kentucky’s future economic prosperity.
“Many people, from business leaders to politicians to citizens, will find relevant information in the annual report,” Michael Clark, director of CBER, said.
According to the report, as of October, the state had recovered 67% of jobs lost during the first months of the pandemic. But the recovery remains far from complete. Kentucky’s employment was still down 107,600 jobs — or 5.5% — from January 2020.
“The number of jobs lost due to COVID-19, and the speed with which it happened, was stunning,” Clark explained. “These job losses had wide-ranging implications, such as widening the racial employment gap, reducing families’ ability to pay for housing, increasing reliance on social programs and reducing child care options for working parents.”
There are more than 100 trends, forces and factors affecting Kentucky’s economy presented in the report. This includes several county- and regional-level comparisons of earnings and employment; county-level analyses of the social determinants of health as well as social capital; updated research results on Kentucky’s educational position relative to other states; and an updated analysis of Kentucky’s state finances compared to other states. In short, throughout this report there is new and important information, data and analysis on Kentucky’s economic situation.
“Coronavirus was certainly the main economic story of 2020 and will continue to affect the economy for some time. However, Kentucky continues to face many of the same challenges that existed prior to the pandemic, including workforce development, labor force participation and racial disparities. In many ways, the pandemic has magnified these challenges,” Clark continued. “We consistently note the importance of education to address these issues and shape Kentucky’s long-term economic and social well-being. This has never been more true. Investing in education and training increases productivity, raises wages, improves health and reduces economic insecurity.”
“A strategic priority of the Gatton College is to increase external engagement and promote economic growth in Kentucky,” Dean Simon Sheather added. “Our goal with this report is to help inform business and community leaders as they consider how to address challenges throughout the Commonwealth — with the hope it will improve household incomes, individual health and the overall well-being of our citizens.”
Digital copies of the 2021 Kentucky Annual Economic Report can be obtained online or by emailing michael.childress@uky.edu.
As the state’s flagship, land-grant institution, the University of Kentucky exists to advance the Commonwealth. We do that by preparing the next generation of leaders — placing students at the heart of everything we do — and transforming the lives of Kentuckians through education, research and creative work, service and health care. We pride ourselves on being a catalyst for breakthroughs and a force for healing, a place where ingenuity unfolds. It's all made possible by our people — visionaries, disruptors and pioneers — who make up 200 academic programs, a $476.5 million research and development enterprise and a world-class medical center, all on one campus.
In 2022, UK was ranked by Forbes as one of the “Best Employers for New Grads” and named a “Diversity Champion” by INSIGHT into Diversity, a testament to our commitment to advance Kentucky and create a community of belonging for everyone. While our mission looks different in many ways than it did in 1865, the vision of service to our Commonwealth and the world remains the same. We are the University for Kentucky.