Economic Impact of Mining Wages

Despite its decline in the region, mining is still a significant industry in certain counties—particularly in eastern Kentucky. Mining accounts for over 10 percent of total employment in eight eastern Kentucky counties, peaking at 23 percent in Knott County (see Figure 5).

Figure 5: Miners as Percent of Total Employed

When we consider mining wages as a percent of total county wages, it is clear that mining’s economic role in some counties exceeds its employment impact. In 2006, for example, mining wages accounted for 60% of all county wages in Knott County, 44.7% in Leslie, and 40.1% in Martin (see Figure 6). As a result, even relatively small changes in the mining industry have particularly strong effects on these communities.

Figure 6: Mining Wages as Percent of County Wages