Commerce Lexington

Lexington was recently ranked as one of 10 Best Places To Live The Simple Life by AARP Magazine.

“…residents, who are just as likely to be beer-drinking college basketball fans as julep-swigging Derby lovers, say this is one of those rare southern towns that offers four distinct seasons, and the relaxed graciousness of the Old South. In the heart of bluegrass music country, Lexington also boasts rich African American roots, an impressive history—Mary Todd Lincoln was born here, husband Abe about 80 miles to the southwest—and distilleries that produce some of the world’s best bourbon.”

Now, I know what you are thinking, I don’t really have much in common with your average AARP reader, but let’s take a look at their methodology. They took 324 metro areas across the United States and ranked them on the following categories: housing appreciation (or depreciation) and affordability, the employment picture, education, health, low cost of living, less congestion/traffic, more open space, numbers of farmers’ markets, outdoor amenities, hiking and biking trails, state parks, green values (number of food co-ops, farmer’s markets, and LEED-certified buildings and homes; possibilities for alternative commuting (walk, bike, ride); energy efficiency and renewable-energy policies), alternative energy sources, energy efficiency programs, stress index (divorce, crime, suicide, unemployment, rates of depression, and other social measures), healthy living (the number of fruits, vegetables, and whole grains the average resident consumes, and the number of residents who get regular exercise, from an annual survey by the Centers for Disease Control and Prevention), and percentage who commute by bike or by walking.

I’m nowhere near retirement age, but having Lexington ranked in the top ten of 324 metro areas based on this criteria is something to celebrate.

The United States labor force is experiencing a rising tide of unemployment that has reached a current level of 7.1% nationally (not adjusted*). Something that is often overlooked in the unemployment figures released monthly by the Bureau of Labor and Statistics is the role that educational attainment plays in a city or nation’s success. The figures below show a clear relationship between educational attainment and the ability to find a job in the United States.

US Unemployment as of December 2008

Less than a high school diploma: 11.7%

High school graduates, no college: 7.8%

Some college or associate degree: 5.6%

Bachelor’s degree and higher: 3.5%

Nationwide, over one in ten individuals in the labor force without a high school diploma are unemployed. Simply obtaining a high school diploma (or equivalency) puts an individual into a labor pool that has a one third lower unemployment rate. Additionally, individuals who earn some college credit or an associate degree will find themselves in a labor pool that is below the national average at 5.6%. Finally, those who earn at least a bachelor’s degree are in a labor pool that is less than half of the national unemployment rate, currently 3.5%.

Although Fayette County has been riding out the current recession relatively well compared to Kentucky and the nation as a whole, we don’t believe it is by chance. A major key to Lexington’s ability to survive and, in some cases, thrive in the current economic climate is the city’s highly educated workforce. We were even recently granted the title of second “Most Educated Workforce” in the nation by Business Facilities magazine based on the percentages of our population that are high school graduates or that have attained a bachelor’s or more advanced degree.

*I try to quote non-adjusted data when possible so it is easier to compare with our local unemployment data. Seasonal adjustments don’t work as well with smaller sets of data so local and regional unemployment figures are usually released without seasonal adjustment.