When the University of Kentucky’s Gatton College of Business publishes its annual Kentucky Economic Report, most people just pay attention to the front of the book, which predicts whether the state’s economy will rise or fall, and by how much.
But I think the rest of the book is more interesting. It is filled with great bits of information that not only tell us about the economy, but offer some clues about the state of Kentucky society, too.
Here are a few gleanings from the 2015 report, published last month by Christopher Bollinger, director of the college’s Center for Business and Economic Research:
■ Kentucky’s landscape may be mostly rural, but its economy is all about cities. The “golden triangle” bounded by Lexington, Louisville and Cincinnati contains half the state’s population, 59 percent of the jobs and 54 percent of the businesses.
■ Wages in metro counties in 2012, the most recent figures available, were 29 percent higher than in “mostly rural” counties and 20 percent higher than in “somewhat rural” counties.
■ How can rural counties improve wage rates? The report offers advice from Mark Drabenstott, director of the Center for the Study of Rural America: encourage home-grown entrepreneurs, “think and act regionally” and find a new economic niche in high-value, knowledge-based industries that leverage the region’s strengths.
■ If you feel like you haven’t had a raise in years, you are probably right. Kentucky’s average weekly wage, when adjusted for inflation, is about the same as it was in the first quarter of 2007.
■ Kentucky’s poor and lower middle-classes have gotten 4.4 percent poorer since the late 1970s, while the state’s middle class has lost 7.5 percent in inflation-adjusted household income. Upper middle-class Kentuckians have seen household income rise 7.7 percent, while the richest 10 percent have seen a rise 16.7 percent. All segments of Kentuckians did much worse than their peers nationally.
■ Kentucky’s earned income per-capita relative to the national average increased steadily from 1960 to 1977 and peaked at 80 percent. But it has fallen since 1977 and is now at 75.4 percent, ranking Kentucky 46th among the states.
■ Lexington and Louisville have seen steady employment gains since 2010 or early 2011 and have returned to or exceeded their pre-recession highs.
■ The disappearance of family farms isn’t news, but the report has some interesting statistics. Kentucky has roughly one-third the number of farms it had in 1950 and the average farm size has doubled. Kentucky lost 8,196 farms during the 2007-2012 recession, the largest decrease of any state. Most of that decline was likely farms going “idle” rather than being developed, the report said.
■ There has been a marked increase in value-added farm products such as jams, salsa, wine and jerky. The production of value-added foods, adjusted for inflation, has risen from $3.34 billion in 1993 to $5.1 billion in 2011.
■ While tobacco has declined sharply, the value of the state’s other major crops — corn, soybeans, hay and wheat — has improved considerably. The most dramatic growth has been in poultry. Broilers (chickens raised for food) are now Kentucky’s most-valuable farm commodity; chicken eggs are 10th and farm chickens are 12th.
■ What Kentucky industry sector has lost the most jobs in the past 25 years? If you guessed coal, you’re wrong. Kentucky in 2013 had 45,000 fewer manufacturing jobs than it did in 1990, a 16 percent decline. The sector that gained the most jobs was educational and health services: 103,700 more people work in those areas, a 67 percent increase.
■ There were 364,000 more Kentuckians employed in 2013 than in 1990, a 25 percent increase, beating the population increase of 19 percent. About 95,400 Kentuckians work for companies that are majority foreign owned.
■ In various measures of “community strength,” Kentucky is on par or better than the national average. Crime rates are lower. Kentuckians tend to trust their neighbors more. They report higher levels of “emotional support and life satisfaction.” But they give less to charity and volunteer less than the national average.
There’s more good stuff in the 2015 Kentucky Annual Economic Report. To download a full copy, click this link.