This document summarizes Kentucky's economic indicators and development efforts. It reports that Kentucky's unemployment rate has dropped to its lowest point since 2001, with over $6 billion in investments creating nearly 23,000 jobs between 2014 and 2015. The document outlines Kentucky's efforts to attract foreign direct investment, support entrepreneurship, develop its workforce, and partner with companies to close skills gaps. It provides statistics on job and economic growth across various sectors and regions in Kentucky.
1. Presented by Erik Dunnigan, Deputy Secretary
Kentucky Cabinet for Economic Development
Kentucky’s
Global Economy
2. UNEMPLOYMENT RATE EDGES DOWNWARD
• Added 271,000 jobs in October
• Rate drops from 5.1% to 5%
• Lowest rate since April 2008
EXPORTS INCREASE AND IMPORTS DECREASE
• International trade balance improves by
$7.2 billion
• GDP growth continues at 1.5%
U.S. ECONOMIC INDICATORS IMPROVING
3. As the world’s second-largest economy, China’s output
and consumption rates impact global manufacturing.
PRESSING INTERNATIONAL FACTORS
6.5
7
7.5
8
12 13 14 15
Economic Growth Rate
CHINA
%
%
%
%
4. STOCK MARKET: WORLDWIDE DROP
Hang Seng
Nikkei
Dow
DAX
FTSE
MAJOR INDICES FELL IN THIRD QUARTER 2015
Markets have experienced increased volatility since
0
5,000
10,000
15,000
20,000
25,000
30,000
5. HESITANCY ON THE NATIONAL SCALE
Citing recent
market turmoil,
the Federal
Reserve
kept its
federal funds rate
near zero
last quarter.
7. GOVERNOR’S CUP - 2014
> KENTUCKY #1 NATIONALLY
PROJECTS PER CAPITA
> KENTUCKY 6th OVERALL
IN PROJECT ACTIVITY
1 Texas 26,448,193 2 of 50
2 Ohio 11,570,808 7 of 50
3 Illinois 12,882,135 5 of 50
4 N. Carolina 9,848,060 10 of 50
5 Georgia 9,992,167 8 of 50
6 KENTUCKY 4,395,295 26 OF 50
2014
Rank State Population Population Rank
8. Economic Momentum
Kentucky’s jobless rate in
September 2015 was 5%, the
LOWEST SINCE 2001.
$6.4 billion investment
Jan. 2014 – Oct. 2015, creating nearly
23,000 jobs
Kentucky’s GDP grew faster
than the U.S. 2007-2015
and economic activity is
the highest ever.
5%
More than 250 location
and expansion projects
announced through Oct.
2015.
Source: U.S. Bureau of Labor Statistics
9. NEW vs. EXPANDING INDUSTRY
ANNOUNCEMENTS 2009 - Oct. 2015
15%
85%
Project
Announcements
New Location Expansion
30%
70%
Jobs
New Location Expansion
18%
82%
Investment
New Location Expansion
13. AUTOMOTIVE INDUSTRY EMPLOYMENT
Kentucky's industry employment grew by 72%
Industry employs 85,552 workers at 470+ establishments in Commonwealth
Nationally, industry employment
fell 26% since 1990
Assembly plant employment INCREASED 46%
Parts manufacturing INCREASED 87%
Body and trailer manufacturing INCREASED BY 110%
26%
72%
16. of Kentucky’s announced investment
came from foreign direct investment
in 2014
30%
The percentage of Kentucky’s new jobs in 2014
from FDI
20%
THE STATE OF FOREIGN DIRECT INVESTMENT
IN KENTUCKY
17. $2.3
$27.7 billion in 2014
191 countries
Supports 125,000
Kentucky jobs
Through September 2015, 4.5
percent ahead of September
last year
On pace for $28 billion
in 2015
Shattering Export Records
for 5 Years
billion
$7.6
billion $2.3
billion
$1.7
billion
China
United Kingdom
Mexico
Canada
$2
billion
France
19. Kentucky’s State
of Entrepreneurship
The State Entrepreneurship Index
(SEI) reflects a state’s entrepreneurship
environment, growth in business formation and
technological innovation. In just one
year, Kentucky rose 45 spots to No. 4 nationally.
20. > The Office of Entrepreneurship and the Kentucky
Innovation Network assisted more than 1,200
Kentucky clients between Jan. 2014 and Oct. 2015
with a variety of services, including:
Small Business Tax Credit
Angel Investment Tax Credit
Angel Investors Network
Small Business Credit Initiative
Commonwealth Seed Capital Investors Summit
Entrepreneur Pitch Competition
Idea State U
Governor’s School for Entrepreneurs
KENTUCKY INNOVATION NETWORK
21. SMALL BUSINESS ASSISTANCE
Kentucky Small
Business Tax Credit
$1 million in tax
credits have been awarded
40% awarded to small
businesses in rural counties
Kentucky Small Business
Credit Incentive
$10.1 million in loan support
$89.3 million leveraged
64% awarded to small
businesses in
rural counties
24. Kentucky’s Unemployment Rate
September Unemployment Rates in KY
5.5
7.1
10.7
10.0
9.2
8.1 7.9
5.8
5.0
2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: U.S. Bureau of Labor Statistics
25. Kentucky’s Employment vs. Unemployment
June Employment/Unemployment in KY
2007 2008 2009 2010 2011 2012 2013 2014 2015
Unemployment 101,857 133,284 207,607 196,583 186,986 160,173 158,695 109,423 88,140
Employment 1,923,112 1,898,619 1,844,842 1,854,744 1,871,803 1,902,313 1,897,634 1,875,377 1,840,833
1,700,000
1,750,000
1,800,000
1,850,000
1,900,000
1,950,000
2,000,000
2,050,000
2,100,000
Total Workforce
Employment
Source: U.S. Bureau of Labor Statistics
Total Workforce 2,024,969 2,031,903 2,052,449 2,051,327 2,058,789 2,062,486 2,056,330 1,984,800 1,928,973
26. FILLING THE SKILLS GAP
With U.S. economic growth
on a firmer footing, and demand
ticking up, the AVAILABILITY OF
SKILLED LABOR has become
the #1 factor in site decisions,
according to the latest survey of company
executives by Area Development magazine.
27. 125 Company Members
75 Companies currently
sponsoring students
147 Current Students
65 Graduates
Owensboro
Florence
Bowling Green
Somerset
Mayfield
Hopkinsville
Madisonville
Elizabethtown
Springfield
Georgetown
Danville
Louisville
Maysville
Pikeville
Shelbyville
