Financial experts are sharing updates about the state of the Commonwealth’s economy. Officials said economic conditions are uncertain in much of the nation, but Kentucky’s economy is still the best it has been in years.
Dr. Charles Aull, Vice President of Policy for the Kentucky Chamber of Commerce said while policy in the General Assembly is working to address workforce issues, shifting U.S. trade policy poses other issues.
“Prior to World War II, tariffs were a very common part of U.S. domestic economic policy. They haven’t been since then, and now they are again, so what does that mean? What we hear from a lot of employers, a lot of businesses, are holding back expansion plans, holding back on investments, holding back on hiring plans, and we’re seeing a lot of freezes put in place.”
Aull said continued growth is possible if more solutions are posed to struggles for workers.
“There’s still a lot of work Kentucky needs to do, especially when it comes to workforce challenges. That’s one of the reasons why the chamber is emphasizing access to childcare so much. And also access to housing. People need those types of things in order to participate in the workforce. Long term, that’s one of the greatest challenges Kentucky has in front of it, which is a low rate of workforce participation.”
Kentucky’s economy is continuing to grow since the COVID-19 pandemic, job growth in the state has been rising rapidly, and now officials said Kentucky jobs are growing at a more sustainable pace. Aull adds a return to World War II era tariff rates make it hard to predict how the next year will play out for the state’s economy.