Number of government jobs on the rise

by The City Wire staff ([email protected]) 56 views 

A job trend that could soon see local, state and federal governments as the largest employment sector in Arkansas is a natural development of the national recession, according to economist Jeff Collins.

A recent report from Roby Brock at TalkBusiness.net showed that government job growth is growing and may soon become the largest employment category in the state. The April 2009 nonfarm employment report released by the Arkansas Department of Workforce Services had government jobs at 222,100 workers, up 4,700 from one year ago.

Based on the April report, there are 55,400 more government jobs than manufacturing jobs in Arkansas. If current job trends continue, Brock noted in his report, then by this time next year government will be the largest employer in Arkansas.

Collins, an economist based in Springdale who served for seven years as director of the Center for Business and Economic Research at the University of Arkansas, said the only time to be concerned with increased growth in government jobs is in strong economic times.

“This (high government job growth) is a natural function that takes some bite out of the business cycle,” Collins told The City Wire. “Growth in government jobs is common and not surprising when you consider that more people need public assistance during recessionary periods.”

There were 19,000 government jobs in the Fort Smith metro area (Crawford, Franklin and Sebastian counties in Arkansas, and LeFlore and Sequoyah counties in Oklahoma) according to the April report, up over the 18,700 in April 2008. The average annual rate for government jobs in the metro area has grown from 14,800 in 2000, to 18.200 in 2008, a 22.9% increase in the nine-year period.

The top 10 Arkansas job sectors as of April were (numbers in parenthesis show year-over-year change):
Trade, Transportation & Utilities  234,500 (-12,900)
Government  222,100  (+4,700)
Manufacturing  166,700  (-17,400)
Education & Health  163,500  (+6,100)
Professional & Business Services  116,400  (-800)
Leisure & Hospitality  104,300  (+2,500)
Construction  52,600  (-3,100)
Financial Activities  49,400  (-3,000)
Other Services  44,900 (-900)
Information  17,000  (-2,100)