Fort Smith area jobless rate jumps to 9.2%

The Fort Smith unemployment picture has gone from bad to worse, with the preliminary January unemployment rate rising to 9.2%, according to figures released Friday (Mar. 18) by the U.S. Bureau of Labor Statistics.

February 1992 was the last time the metro area unemployment rate was at or above 9.2% (the rate was 9.8%).

The number of unemployed in the metro area rose to an estimated 12,215 in January, up 7.27% compared to December and up 2.32% compared to January 2010. The last time there were more unemployed in the Fort Smith area was February 1991 (12,710).

Of Arkansas’ eight metro areas, Only Memphis-West Memphis (10.4%) and Texarkana (7.8%) saw a jobless rate decline in January compared to January 2010.

The lowest metro rate in the state was Northwest Arkansas at 6.8%. The highest metro rate was 10.9% in Pine Bluff.

Dr. Michael Pakko, economist with the Institute for Economic Advancement at the University of Arkansas at Little Rock, said the Fort Smith and Pine Bluff areas are the only Arkansas metro areas to not show meaningful job growth.

“These two metro areas also showed year-over-year declines, and remain at employment levels far below those at the start of the national recession (in December 2007). The state’s other metro areas have shown varying degrees of progress toward recovering from job losses experienced during the recession. Jonesboro continues to lead with employment 0.4% higher than in December 2007,” Pakko explained.

FORT SMITH METRO PICTURE

The number of employed in the metro area during January was 120,185, down 1.58% compared to the 122,123 employed in the area during January 2010, and down 0.56% compared to December 2010.

Total metro nonfarm payroll in January was 114,900, down from the revised 116,700 in December, and down 0.26% compared to January 2010.

Fort Smith’s manufacturing sector employed an estimated 20,800 in January, down from 21,000 during December, but up from the 20,700 employed in the sector in January 2010. Employment in the sector is down 32.2% from a decade ago when January 2001 manufacturing employment in the metro area stood at 30,700.

Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 23,800 in January, down from 24,300 in November. The sector employed 24,100 in January 2010.

No economic sector in the Fort Smith area had an increase in jobs between December and January. The financial services sector remained flat at an estimated 4,200 jobs.

NATIONAL, STATE NUMBERS
Unemployment rates were lower in January than a year earlier in 282 of the 372 metropolitan areas, higher in 73 areas, and unchanged in 17 areas, noted the BLS report. Also, 16 areas recorded jobless rates of at least 15%, while 5 areas registered rates of less than 5%.

By way of comparison, unemployment rates were lower in December than a year earlier in 238 of the 372 metropolitan areas, higher in 115 areas, and unchanged in 19 areas, noted the BLS report. In December, 14 areas recorded jobless rates of at least 15%, while 14 areas registered rates of less than 5%.

The U.S. unemployment rate in January was 9%, down from 9.7% in January 2010 and down from 9.4% in December 2010. Arkansas’ January unemployment rate was 7.8%, down from 7.9% in December and down from 8% in January 2010. The Oklahoma rate during January was 6.6%, down from 6.8% in December and down from 7.3% in January 2010.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
Jan. 2011: 6.8%
Jan. 2010: 6.8%
Dec. 2010: 6.2%

Fort Smith
Jan. 2011: 9.2%
Jan. 2010: 8.9%
Dec. 2010: 8.6%

Hot Springs
Jan. 2011: 8.9%
Jan. 2010: 8.7%
Dec. 2010: 8%

Jonesboro
Jan. 2011: 8.3%
Jan. 2010: 8.1%
Dec. 2010: 7.4%

Little Rock-North Little Rock-Conway
Jan. 2011: 7.4%
Jan. 2010: 7.4%
Dec. 2010: 6.9%

Memphis-West Memphis
Jan. 2011: 10.4%
Jan. 2010: 11.2%
Dec. 2010: 9.4%

Pine Bluff
Jan. 2011: 10.9%
Jan. 2010: 10.5%
Dec. 2010: 9.8%

Texarkana
Jan. 2011: 7.8%
Jan. 2010: 8%
Dec. 2010: 7.1%

FORT SMITH METRO AREA HISTORY
Past annual average unemployment rates
2009: 7.9%
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%