State unemployment rate stays at 7.9%

It’s clear the economy is still struggling when the official statement from Arkansas workforce officials indicates that a slower rate of increase in the number of unemployed helped stabilize Arkansas’ unemployment rate.

Indeed, Arkansas’ unemployment rate in December was 7.9%, unchanged from November, but still higher than the 7.6% in December 2009, according to figures released Tuesday (Jan. 25) by the federal Bureau of Labor Statistics. The Oklahoma jobless rate was 6.8%, down from 6.9% in November, and unchanged from the 6.8% in December 2009.

The number of unemployed in Arkansas during December is estimated at 107,755, up 1.2% compared to November, and up 3.1% compared to December 2009.

“Arkansas’ civilian labor force and the number of employed increased for the third consecutive month. Also, the number of unemployed increased at a slower pace the last two months. These factors contributed to the rate’s stabilization in December,” Arkansas Department of Workforce Communications Director Kimberly Friedman said in a statement.

The Arkansas rate marks the 22nd consecutive month above 7%.

The state’s civilian labor force was 1.358 million in December, up 0.54% compared to November, but down 1.2% compared to December 2009.

Arkansas’ total nonfarm employment rolls dropped 2,500 jobs between November and December, settling at 1.166 million. However, the December figure is 12,500 jobs above the 1.153 million in December 2009. The state’s nonfarm employment is down 41,600 jobs since the peak of 1.208 million in February 2008.

Employment in Arkansas’ manufacturing sector dropped to an estimated 164,000 jobs in December from 165,000 in November. Good news for the sector is that December employment was 2.9% higher than in December 2009. The manufacturing sector in Arkansas has lost 73,600 jobs in the past 10 years (December 2000-December 2010), or 30.9% of sector employment.

SECTOR NOTES
• Construction and construction-related jobs increased to 52,600 in December compared to 52,400 in November. The estimate is up over the 51,600 in December 2009. The job count is 4,900 below the peak of 57,500 first reached in February 2006.

• Jobs in the Trade, Transportation and Utilities sector — the state’s largest sector — fell from 230,700 in November to 228,800 in December. The sector is down 0.21% compared to December 2009.

• The Professional & Business services sector gained an estimated 2,400 jobs in December to settle at 114,600. The sector employed 111,800 in December 2009.

“Most of the addition occurred in administrative and support services (+1,200), caused in part by expansions in employment services and services to buildings and dwellings,” noted the DWS statement.

• The state’s tourism sector — Leisure & Hospitality jobs — fell to 99,400 jobs in December. The sector employed 100,100 in November, and 99,500 in December 2009. The sector has been on a steady decline since peaking in August 2008 with 101,800 jobs.

• The government sector saw jobs increase to 212,600 in December, up from 212,400 in November, but below the 217,500 in December 2009.

“State government posted a majority of the decline, as most temporary stimulus jobs have ended,” the DWS statement noted.

NATIONAL STATS
According to the U.S. Bureau of Labor, 20 states recorded unemployment rate increases, 15 states and the District of Columbia registered rate decreases, and 15 states had no rate change. Compared to a year ago, 31 states and the District of Columbia posted unemployment rate decreases, 16 states reported increases, and 3 states had no change.

The U.S. jobless rate in December was 9.4%, down from 9.8% in November, and down from 9.9% in December 2009.

Nevada continued to register the highest unemployment rate among the states, with 14.5% in December. The states with the next highest rates were California (12.5%) and Florida (12%).

North Dakota reported the lowest jobless rate, 3.8%, followed by South Dakota and Nebraska, 4.4% and 4.6%, respectively.