Government jobs now 19% of Arkansas workforce

A new report at TalkBusiness.net sheds light on the fact that government jobs are now more than 19% of total nonfarm employment in Arkansas.

The January report also shows a continuance in the decline of manufacturing jobs and the increase in government sector jobs in the past decade. In January 2001, the state had 236,100 manufacturing jobs but saw the number dwindle more than 33% to the 157,400 in January 2010. In January 2001, the state had 191,300 government jobs and saw that employment gain 13.6% to 217,400 in January 2010.

The report from Roby Brock contains the following points.
• According to data compiled by the U.S. Department of Labor and distributed by the Arkansas Department of Workforce Services, government jobs in Arkansas
totaled 217,200 in January 2010, roughly 19% of the total non-farm payroll jobs in the state.

• Of the 11 major categories of job classifications, government employment is a close — and getting closer — second to jobs in the trade, transportation & utilities industries.  Those private sector jobs totaled 225,600 in number in January 2010, approximately 19.8% of the total non-farm payroll jobs in Arkansas.

• Government jobs have grown by 3,000 (2,700 at the state level) in the twelve-month period, while Trade, transportation & utilities have lost 11,700.

• The high jobless rate and efforts to curtail it through stimulus funds and tax incentives has had a mixed result. To some, it has stemmed a higher unemployment rate, while others argue that the impact has not been worth the debt accumulated and the deficit spending incurred.

• The increase in government jobs has been noticeable. In part, they’ve risen through public school employment, which for some parts of Arkansas has been rapid. Lake View certainly forced the state to spend more money on education, in turn, adding to the increased number of government employees. There has been a sizable jump in public sector health jobs too, due to tobacco settlement funds as well as federal and private grant money during the last decade.

• Greg Kaza, economist with the Arkansas Policy Foundation, noted in a recent report that “government will emerge as Arkansas’ largest labor market sector this decade if two long-term employment trends continue to advance.” Kaza’s report suggests that a “jobless recovery” could signal “government” as the largest labor market in Arkansas before 2012.

Brock notes in his story: “As candidates running for office this year tell you they’re worried about the growth in government spending and the reliance on government to create jobs, they’ll have proof in the numbers from the very entity they’re railing against.  They’ll also be faced with another dilemma — what to do about it.”