Acknowledgements We would like to acknowledge all of those who provided valuable input to the research team during the course of the study especially the members of the Input from individuals from the Kentucky and local Workforce Investment Boards and other local area agencies, who participated in discussions during the development of the survey and study design, was greatly appreciated. Participation by individuals and businesses in one of our two surveys was invaluable. We would also like to thank the Department of Employment Services for providing the employer database for the labor demand study. We received assistance from several key individuals at the University of Kentucky and University of Louisville. Pilar Kraman was the survey supervisor at the Survey Research Center at the University of Kentucky where she manages a very high quality team of interviewers. is pleased to present this final report on the findings of the Kentucky labor supply and demand surveys sponsored by the Kentucky Cabinet for Workforce Development. The two universities have put together a consortium including some of the best scholars in the region in the areas of labor economics, local economic development, and survey design and administration. The study consisted of several major activities: • Design and implementation of a statewide household survey to obtain data on underemployment. • Design and implementation of a statewide survey of businesses to obtain data on fringe benefits, labor shortages and vacancies, and educational credentials. • Statistical estimation using survey data, Census 2000 data, and ES-202 data to provide local estimates of underemployment, fringe benefits, labor shortages and vacancies, and educational credentials. • Development of a web application to make the data available to all interested users. • Development of plans to update the data in the future and to work toward building the data delivery capacity of the Kentucky Cabinet for Workforce Development. The household survey yielded 3,285 completions across five regions (large urban areas, small urban areas, exurban areas, rural Appalachia, and the rural west) in the state with a response rate of approximately 40% in each region. The business survey yielded 3,649 completions and a 27.8% response rate across two sub-samples: establishments with less than 50 employees and establishments with 50 or more employees. The industry make-ups of the two sub-samples were remarkably similar to the industry make-ups of the population of small and large Kentucky business establishments. These survey data and our statistical estimation …