Fort Smith metro jobless rate up to 7.8%

Nine consecutive months of manufacturing employment decline helped push the Fort Smith metro unemployment rate to 7.8% in June — almost three percentage points higher than the June 2008 rate.

According to the U.S. Bureau of Labor Statistics released Wednesday morning (July 29), there were an estimated 11,065 unemployed in the Fort Smith metro area in June, up 62.3% over the 6,814 unemployed in June 2008.

The Fort Smith metro rate increased only three-tenths of a percent between May and June, while the Little Rock metro area saw a seven-tenths increase — 6.6% in June, 5.9% in May — and Northwest Arkansas saw a six-tenths increase — 6.1% in June, 5.5% in May.

The Fort Smith metro unemployment rates for the previous six months were:
May 2009: 7.5%
April 2009: 7.1%
March 2009: 7.3%
Feb. 2009: 7.7%
Jan. 2009: 7.7%
Dec. 2008: 6.1%

Jeff Collins, an economist with Springdale-based Streetsmart Data, said the Fort Smith area unemployment rate likely won’t improve until after a more clear national economic recovery.

“My sense is that this negative momentum will take time (to turn around). … It will be several months after a (national) recovery before we see that (Fort Smith area) employment stabilize,” Collins said.

The Arkansas unemployment rate in June was 7.2%, up from 7% in May. The U.S. unemployment rate in June was 9.5%, up from 9.4% in May.

Rusty Myers, economic development director for the Western Arkansas Planning and Development District (WAPDD), said in a previous report that the regional unemployment rate could top 8%.

According to the preliminary federal figures, manufacturing employment in the Fort Smith metro area has dipped 10.3% in the past 12 months. Regional manufacturing jobs totaled an estimated 22,600 in June, down from 25,200 in June 2008. The annual average manufacturing employment in the Fort Smith area fell from 31,700 in 1999 to 25,000 in 2008, a decline of more than 21%.

However, the Fort Smith area did see employment gains in education and health services — 16,300 jobs in June 2009, compared to 15,800 in June 2008 — and in government — 18,700 in June 2009, compared to 18,100 in June 2008.

ARKANSAS METRO AREAS
The Fayetteville-Springdale-Rogers
June 2009: 6.1%
June 2008: 4.1%

Hot Springs
June 2009: 7%
June 2008: 5.2%

Jonesboro
June 2009: 7.2%
June 2008: 4.9%

Little Rock-North Little Rock-Conway
June 2009: 6.6%
June 2008: 4.5%

Memphis-West Memphis
June 2009: 10.3%
June 2008: 7.2%

Pine Bluff
June 2009: 9.6%
June 2008: 7.1%

Texarkana
June 2009: 6.5%
June 2008: 4.7%

FORT SMITH METRO AREA HISTORY
Past annual average employment rates
2008: 4.8%
2007: 5.3%
2006: 4.9%
2005: 4.5%
2004: 5.2%
2003: 5.5%
2002: 5%
2001: 4.2%
2000: 3.7%