Arkansas’ jobless rate increases in February

Arkansas’ February unemployment rate increased to 6.6%, up over the 6.4% rate in January, and up significantly over the 4.8% rate in February 2009.

The striking figure is that Arkansas’ nonfarm payroll employment fell 30,600 between February 2008 and February 2009. Arkansas’ civilian labor force increased 9,100 in February, with 6,500 more employed and 2,600 more unemployed Arkansans, according to a statement from the Arkansas Department of Workforce Services.

“The increase in Arkansas’ unemployment rate reflects the layoffs and closures that continue around the state,” said DWS Communications Director Kimberly Friedman.

Employment information for Arkansas’ metro areas is scheduled to be released Wednesday (April 1.) The preliminary January unemployment rate for the Fort Smith region spiked to 7.7%, up from 6.1% in December, and up significantly over 5.9% in January 2008.

Annual Employment Data (February 2008 – February 2009)
• Arkansas’ nonfarm payroll employment dropped 30,600 since February 2008.
• Manufacturing experienced a loss of 16,700 jobs.
• Trade, transportation and utilities decreased 12,100.
• Financial activities posted a loss of 3,600. Jobs in finance and insurance fell (-2,600), due in large part to the current market situation.
• Employment in professional and business services dropped 3,400 jobs. Administrative and support services, down 3,000, accounted for a majority of the decrease.
• Educational and health services increased 3,100, as health care needs continue to grow. 
• Government advanced 2,600, as public schools and universities expanded around the state. 

Monthly Employment Data (January 2009 – February 2009)
• Nonfarm payroll jobs in Arkansas declined 1,400 to total 1,169,300 in February.
• Manufacturing posted the largest decrease (-4,200). Hit particularly hard by multiple layoffs and plant closures, durable goods dropped 3,400. 
• Jobs in trade, transportation and utilities declined 1,700. A majority of the loss, related to seasonal factors, occurred in retail trade (-1,600).
• Government posted a seasonal increase (+3,500), as public school employment rebounded after the semester break.
• Employment in leisure and hospitality rose 1,100. Accommodation and food services accounted for almost 90 percent of the growth, due to the opening of racing season in Arkansas.