Arkansas jobless rate rises to 7.5% in August

BusinessFort SmithNews on the Wire

by The City Wire staff ([email protected]) September 21, 2010 1:31 pm 58 views 

Arkansas jobless rate during August increased to 7.5% from a July rate of 7.4%, and marks the 18th consecutive month the unemployment rate has been above 7%.

Oklahoma’s jobless rate for August reached 7%, up from 6.9% from July and the first time to hit 7% since December 1987.

Also, news of the jobless rate increases came a day after the National Bureau of Economic Research said the national recession that began in November 2007 ended in June 2009.

According to the BEA report, 27 states had unemployment rate increases, 13 states registered rate decreases, and 10 states and the District of Columbia had no rate change. Also, 26 states and the District of Columbia posted unemployment rate decreases from a year earlier, 21 states reported increases, and 3 states had no change.

An estimated 4,300 person drop in Arkansas’ civilian labor force helped push the state’s August unemployment rate up to 7.5%, reflecting a 6,200 drop in the number of employed compared to July 2010.

Tuesday’s (Sept. 21) report from the federal Bureau of Labor Statistics places the number of unemployed in August at 100,966, a 1% decrease from the 101,999 in July 2009, and a 1.9% increase compared to July 2010.

Arkansas’ jobless rate hit 7.8% in March, the highest point since May 1988. The U.S. August unemployment rate was 9.6%, up from 9.5% July 2010 and down from the 9.7% in August 2009.

Arkansas’ total nonfarm employment lost 10,900 jobs between July and August reaching 1.160 million. The August figure is also above the 1.159 million in August 2009. However, the state’s nonfarm employment is down 48,0000 jobs since the peak of 1.208 million in February 2008.

Employment in Arkansas’ manufacturing sector fell to 165,300 in August, ending what was a six-month trend of gains in the troubled sector. August manufacturing employment was 2.73% higher than August 2009. The manufacturing sector in Arkansas has lost 74,800 jobs in the past 10 years (August 2000-August 2010), or 31.1% of sector employment.

The longest period by far with Arkansas’ jobless rate above 7% was April 1980 to July 1989. After a brief spell below 7%, the state’s jobless rate moved above 7% between October 1990 to August 1992. It stayed below 7% until March 2009.

YEAR-OVER-YEAR (all August figures are preliminary)
Total nonfarm employment
August 2010: 1.160 million
August 2009: 1.159 million

Trade, Transportation & Utilities
August 2010: 231,300
August 2009: 233,500

Government
August 2010: 216,200
August 2009: 217,200

Manufacturing
August 2010: 165,300
August 2009: 160,900

Professional and Business Services
August 2010: 109,600
August 2009: 111,500

Construction
August 2010: 53,400
August 2009: 51,600

Financial
August 2010: 50,500
August 2009: 50,200

Leisure & Hospitality
August 2010: 96,400
August 2009: 101,100