Fort Smith jobless rate drops below 8%

The Fort Smith metro jobless rate fell to an estimated 7.7% in April, with the estimated number of unemployed falling below 11,000 for the first time in five months.

According to U.S. Bureau of Labor Statistics released Wednesday (June 1), increased employment combined with a decrease in the labor force pushed the metro area below the 8% rate for the first time in four months. The April jobless figure is also below the 8.2% and 7.9% annualized rates during 2010 and 2009, respectively.

All of Arkansas’ eight metro areas saw April jobless rate declines compared to March 2011, and five of the metro areas saw jobless rate declines compared to April 2010. Unemployment rates in the Jonesboro and Memphis-West Memphis metro areas were unchanged from April 2010, and the rate in Pine Bluff was up compared to April 2010. (See chart below for details).

The lowest April metro rate in the state was Northwest Arkansas at 5.8%. The highest metro rate was 9.9% in the Memphis-West Memphis area. Also, no metro area in or connected to Arkansas had a jobless rate of higher than 10% during April.

FORT SMITH METRO PICTURE
The number of unemployed in the Fort Smith metro area was an estimated 10,327 in April, down compared to a revised 11,271 in March, and down 1.54% compared to April 2010.

The number of employed in the metro area during April was 124,340, up 0.35% compared to the 123,895 employed in the area during March, and up 0.59% compared to April 2010. June 2010 was the last time the number of employed rose above 124,000.

Unfortunately, the size of the workforce — 134,667 in April — in the Fort Smith metro area is 4.18% below the June 2007 high of 140,542. Shrinkage in the workforce reflects several factors, including people leaving the area to find work elsewhere or have simply quit looking for work.

Total metro nonfarm payroll in April was estimated at 117,700, up from a revised 117,400 in March, and above the 117,100 in April 2010.

Fort Smith’s manufacturing sector employed an estimated 21,100 in April, up from 21,000 in March, and down from the 21,600 employed in the sector in April 2010. April marks the first employment gain in the sector since July 2010. Employment in the sector is down 31.2% from more than 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 24,400 in April, unchanged from a revised 24,400 in March and up from the 24,000 the sector employed in April 2010.

The region’s tourism industry showed continued to show signs of life in April. The sector employed an estimated 9,200 in April, up from 8,900 in March and up from the 8,600 employed in April 2010. The last time the tourism sector employed more than 9,000 in the area was October 2009. Sector employment is down 6.1% from a high of 9,800 in August 2008.

NATIONAL, STATE NUMBERS
Unemployment rates were lower in April than a year earlier in 297 of the 372 metropolitan areas, higher in 54 areas, and unchanged in 21 areas, noted the BLS report. Also, 12 areas recorded jobless rates of at least 15%, while 16 areas registered rates of less than 5%.

The U.S. unemployment rate in April was 9%, up from 8.8% in March and down from 9.8% in April 2010. Arkansas’ April unemployment rate was 7.7%, unchanged from 7.7% in March and down from 7.9% in April 2010. The Oklahoma rate during April was 5.6%, down from 6.1% in March and down from 7.2% in April 2010.

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 the BLS explanation of the process.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
April 2011: 5.8%
March 2011: 6.1%
April 2010: 6.1%

Fort Smith
April 2011: 7.7%
March 2011: 8.3%
April 2010: 7.8%

Hot Springs
April 2011: 7.5%
March 2011: 8.2%
April 2010: 7.6%

Jonesboro
April 2011: 7.1%
March 2011: 7.6%
April 2010: 7.1%

Little Rock-North Little Rock-Conway
April 2011: 6.5%
March 2011: 6.8%
April 2010: 6.7%

Memphis-West Memphis
April 2011: 9.9%
March 2011: 10.1%
April 2010: 9.9%

Pine Bluff
April 2011: 9.8%
March 2011: 10.1%
April 2010: 9.2%

Texarkana
April 2011: 7.1%
March 2011: 7.4%
April 2010: 7.3%

FORT SMITH METRO AREA HISTORY
Past annual average unemployment rates
2010: 8.2%
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%