Here's Why Kentucky Faces Toughest Hiring Struggles in the U.S.

Finding new employees has become a top challenge for businesses in Owensboro and Kentucky, with many employers struggling to fill open positions. A recent study by WalletHub illuminates the situation, highlighting Kentucky’s significant labor shortages.

Across Kentucky, businesses are forced to adjust their strategies in response to the ongoing labor shortage. Many stores, including clothing shops, have had to shorten their hours, with some even closing dressing rooms due to being understaffed. "Now Hiring" signs are becoming a common sight around town, and for some, it's the reason their favorite restaurant might close early or their beloved local shop shut down for good. The struggle to find employees is a reality that impacts everyone, whether it's through fewer available services or the frustration of seeing businesses struggle to stay afloat.

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As someone with friends who own and manage businesses, I hear firsthand about the difficulties they face in hiring. It's clear why Kentucky ranks among the worst states for filling job openings. While the challenges are evident, there's a silver lining. If you're in the job market or thinking about making a change, there are plenty of opportunities out there. Why is it so tough to find workers, and what can be done to solve this growing problem?

HIRING STRUGGLES IN KENTUCKY

Kentucky faces significant hiring challenges, with many employers struggling to fill positions despite a labor force participation rate of 58.3%, well below the national average. According to WalletHub’s report on 2025’s States Where Employers Are Struggling the Most with Hiring, Kentucky ranks among the top states dealing with this issue. In November 2024, the state had 152,000 open jobs, a notable increase from the previous year. However, there were still 43,000 more job openings than unemployed Kentuckians, highlighting a significant mismatch between available positions and the workforce. This continued struggle to align job opportunities with labor availability underscores the difficulty Kentucky employers are facing daily.

"There are many reasons why finding suitable labor can be tough. Some of them are fairly obvious, such as the employer's industry being unappealing or dangerous. The employer could be located in a relatively remote place that simply lacks a large enough labor pool of qualified people. The more worrisome reasons for struggles with recruiting and hiring, though, are the employer's reputation and practices that may be turning off applicants and job hunters." - James M. Wilkerson (Ph.D., SPHR)

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KENTUCKY RANKS #1 IN THE U.S.

The study compared the 50 states and the District of Columbia based on the rate of job openings over the latest month and the past 12 months, revealing that many businesses in Kentucky are struggling to find new employees.