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How state unemployment changes and economic uncertainty are impacting the job hunt

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Posted at 7:00 PM, Mar 15, 2023
and last updated 2023-03-15 19:14:18-04

NICHOLASVILLE, Ky. (LEX 18) — Amid record-high inflation and new changes to the state's unemployment system, some Kentuckians say that as they look for work, they're struggling with crippling debt and concerned about the future.

While January saw a record low for unemployment claims, the latest data for unemployment claims in Kentucky saw the biggest week-to-week increase in the U.S.

Clarissa Leathers has been unemployed since January and drives the 12 miles to the Kentucky Career Center in Lexington each week to complete her required work activities.

"I am actively interviewing for positions," said Leathers. "There are jobs available but not jobs that are available at the wage that you were making."

Currently, for the first time since it was created, instead of 26 weeks of benefits, unemployed Kentuckians will get a maximum of 12 weeks.

For those who got benefits at the start of the year like Leathers, the clock on those benefits is running out.

"The time has gone by fast," she said. "It does scare me because I'm gonna have to take what I can get, whether the wage is comparable or not."

Leathers is behind several thousands of dollars in unpaid bills and hoping to make enough to get herself back on track financially.

However, at 47 years old, she feels like she'll have to go backward and take what she can get.

"People my age, trying to start over at almost 47 years old, you know, people are looking more into retail and things that are harder on our bodies. We're having to turn to physical demand jobs and things like that," said Leathers.

Her worst fear is that she'll lose everything she worked hard for.

The unemployment rate is also slightly up nationwide from 3.4% to 3.6%. However, many economists say it is still low compared to other years.

Dustin Pugel, policy director with the Kentucky Center for Economic Policy, says the landscape now could be a sign for what is to come.

"Nobody has a crystal ball. We don't know exactly what's gonna happen with the economy in the next couple months. Indicators keep pointing to the possibility of a recession," said Pugel.

In Magoffin County, where unemployment remains the highest in the state, rising claims are the last thing Judge Executive Matthew Wireman wants to hear.

"When you have individuals that have a job that is a livable wage and they lose it, it's a struggle to find a replacement job in the area," said Wireman.

Wireman says it's the case for many places across Eastern Kentucky.

While unemployment is expected to rise throughout the year, data shows there are still more jobs available than people.

For a year now, the federal government has tried bringing down inflation to avoid recession.

Without knowing, people directly impacted right now are bracing for what's next and say because of the tight margins the type of jobs available are even more important.

"I'm just one. How many of us are there?" said Leathers.