LEXINGTON, Ky. (Feb. 7, 2023) — Outlining instructional progress and the methods wherein inflation continues to impression Kentucky’s financial system, the Heart for Enterprise and Financial Analysis (CBER) — the utilized financial analysis department of the Gatton Faculty of Enterprise and Economics at the College of Kentucky — launched its 51st Kentucky Annual Financial Report at present.
One of many key findings reveals, after years of accelerating instructional progress, Kentucky is dropping floor to different states. “Whereas the pandemic has seemingly contributed to our stalled Okay-12 progress, this pattern seems to pre-date COVID,” Michael Clark, director of CBER, stated. “There are various elements affecting financial success, together with a tradition of innovation and entrepreneurism, widespread web entry, favorable tax insurance policies and infrastructure improvement — however schooling is crucial issue for the state’s future financial prosperity.”
The report is among the some ways CBER fulfills its mandated mission as specified within the Kentucky Revised Statutes to look at numerous points of the Kentucky financial system. CBER performs analysis initiatives for federal, state and native authorities companies, in addition to for personal sector and nonprofit shoppers nationwide.
The report covers a wide range of points starting from an financial forecast for the Commonwealth in 2023 to a complete presentation of agricultural, group, financial, financial safety, schooling, vitality, setting, well being, infrastructure, innovation, inhabitants and public finance elements affecting Kentucky’s future financial prosperity.
Moreover, the report highlights greater than 100 tendencies, forces and elements affecting Kentucky’s financial system. “Many individuals, from enterprise leaders to politicians to residents, will discover related data within the annual report,” Clark stated.
The rise of inflation and the opportunity of a recession can also be touched upon within the detailed report.
“The trail of inflation and the opportunity of a recession signify rapid and critical challenges for the financial system,” Clark defined. “Nevertheless, systemic points, reminiscent of workforce improvement, labor power participation, well being safety, and racial, gender, and ethnic disparities signify long-term financial challenges.”
In response to the report, most financial sectors have recovered from the pandemic downturn. By mid-2022, Kentucky’s non-public employment totals equaled their pre-pandemic ranges.
Nevertheless, many staff who left their jobs in the course of the pandemic — notably mother and father of younger youngsters and people near retirement — haven’t returned to the workforce. For instance, Kentucky’s employment-population ratio declined from 56.2% to 55.4% from February 2020 to November 2022.
“That is troubling, as a result of Kentucky already had one of many lowest labor power participation charges amongst prime working age adults within the nation,” Clark stated.
Moreover, the report gives regional comparisons throughout the Commonwealth. These comparisons present that some areas have suffered disproportionate financial hardships — earlier than, throughout and after the pandemic’s peak.
“One of many priorities of the Gatton Faculty is to assist promote financial progress all through the state of Kentucky,” Dean Simon Sheather added. “Our aim with the financial report is to assist inform Kentucky enterprise leaders, politicians and residents with related data that assists within the decision-making course of that may purpose to enhance Kentucky’s future financial prosperity.”
Digital copies of the 2023 Kentucky Annual Financial Report could be obtained on-line or by emailing michael.childress@uky.edu.
