The analysis by Dr. Michael Clark with UK's Center for Business and Economic Research shows employment growth has slowed, inching back toward what were considered normal levels pre-pandemic.
Yet relatively steady wage growth is cushioning that blow, with increases expected in the coming years.
Still, CivicLex Executive Director Richard Young says the prospect of slower revenue growth may have an "outsized" effect on the city's budgeting process, which is just getting underway.
"What that will probably look like is less new positions and fewer new programs that have recurring costs. Costs continue to rise obviously all across the country and Lexington's not immune to that," Young says. "Look to see more one-time programs or shoring up of existing programs already as the city plans its budget for the next fiscal year."
As for which sectors are seeing the most job growth in Fayette County, according to the data, government, healthcare, and education lead the pack while manufacturing and professional and business services are losing ground.