WAVE 3 TV Louisville, KY | New index shows Louisville still in recession

New index shows Louisville still in recession

By Janelle MacDonald - bio | email

LOUISVILLE, KY (WAVE) - It seems for much of the past year, we've heard mostly depressing news about the economy. Now there's an encouraging sign: something called the Adversity Index says one in four metro areas are now in recovery. However, in our area, the results are mixed.

"It's all across the country," Laura Metcalf said. "It's not just here, it's not just me .. I've been at my job for nine years and they cut back on hours real bad and then I had full-time job to go with it and I got let go from that."

According to MSNBC and Moody'sEconomy.com's Adversity Index, here in Metro Louisville, the picture is still not bright.

The city continues to be classified as "in recession" based on things like employment, housing construction and industry.

UofL economics professor Josh Pinkston says the index is probably a pretty good indication of our economy, but also has this warning: "All of these numbers should be taken with a grain of salt."

Pinkston says the data is going to have some errors.

"A lot of this is done with random samples," Pinkston said. "In some areas, you're going to have a much smaller sample than others."

Which may help explain how Elizabethtown, just about 40 miles from the Metro, is classified as "in recovery."

Pinkston also has another explanation.

"E'town has Fort Knox which has been expanding," Pinkston said. "Louisville doesn't."

But as with so many of these numbers, what really matters to us is the bottom line. 

"If you have a job and you're doing well, then the economy is fine for you," Pinkston said. "If the numbers are high and you still have a job, then you're fine."

So for Metcalf, the recovery is still a long way away.

"I've had to move in with my son," Metcalf said. "I'm 48 years old. I never foresaw that. Are you kidding me? It's just tough times for everybody."

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