Arkansas jobless rate falls to 7.7%

The state unemployment rate for April comes with two positives — the April rate of 7.75 continues a downward decline and the March rate of 7.8% was revised down to 7.7%.

And although April marks the 26th consecutive month the Arkansas jobless rate has been above 7%, the April employment figures show 17,075 jobs more than April 2010.

According to the federal Bureau of Labor Statistics report released Friday (May 20), the number of employed in Arkansas during April fell to an estimated 1.262 million, down 1,416, or 1.12% compared to March 2011.

Arkansas sectors that saw gains in April compared to March include manufacturing (up 0.76%), trade, transportation, utilities (up 0.54%), leisure & hospitality (up 1.46%) and professional & business services (up 1.22%).

The Oklahoma jobless rate was 5.6% in April, down from 6.1% in March, and down from the 7.2% in April 2010. The U.S. rate during April was 9%.

Arkansas’ total nonfarm employment rolls added 4,800 jobs between March and April, settling at 1.179 million. The April figure is 19,500 jobs above the 1.16 million in April 2010, and 8,500 jobs above April 2009. The state’s nonfarm employment is down 30,300 jobs since the peak of 1.210 million in February 2008.

Employment in Arkansas’ manufacturing sector increased to an estimated 158,800 jobs in April from 157,600 in March. The job level is below the 160,300 in April 2010. The manufacturing sector in Arkansas has lost 72,100 jobs in the past 10 years (April 2001-April 2011), or 31.22% of sector employment.

SECTOR NOTES
• Construction and construction-related jobs fell 46,700 in April compared to 47,600 in March. The April estimate is below the 49,300 in April 2010. The job count is 10,800 below the peak of 57,500 first reached in February 2006.

• Jobs in the Trade, Transportation and Utilities sector — the state’s largest sector — was estimated at 239,900 in April, up from 238,600 in March and up over the 233,100 in April 2010. The sector is up 2,400 jobs compared to April 2009.

• The Professional & Business services sector employed an estimated 124,000 in April, up over the 122,500 in March and up significantly over the 117,400 the sector employed in April 2010.

• The state’s tourism sector — Leisure & Hospitality jobs — increased to 104,100 jobs in April, continuing a positive trend that began in September 2010. The sector employed 102,600 in March, and 98,900 in April 2010.

• The government sector employed 216,200 in April, unchanged from March, and down from the 218,200 in April 2010.

NATIONAL STATS
According to the BLS report, 3 states recorded unemployment rate increases, 46 states registered rate decreases, and 1 state had no rate change compared to April 2010.

Nevada continued to register the highest unemployment rate among the states, with 12.5% in April, down from 13.5% in March. The states with the next highest rates were California (11.9%) and Rhode Island (10.9%).

North Dakota reported the lowest jobless rate, 3.3%, followed by Nebraska at 4.2%. New Hampshire and South Dakota shared the third lowest rate of 4.9%.

The BLS also issued this note with its release of April state unemployment data: “With the release of preliminary April 2011 data, state and area nonfarm employment estimates incorporate net business birth/death adjustment factors estimated on a quarterly basis, replacing the previous practice of estimating the factors annually. This allows the state and area nonfarm employment estimates to incorporate information from the Quarterly Census of Employment and Wages into the net birth/death adjustment factors as soon as it becomes available and thereby improve the factors.”

Critics of the new model say it skews the numbers to appear better than what is happening in the economy. Some economists say the model creates a short-term boost that is often mitigated over the long-term.

Link here for a BLS explanation of the process.