Arkansas jobless rate hits 8.3% in August

Arkansas’ jobless rate increased to an estimated 8.3% in August, up from 8.2% in July, and up from 7.8% in August 2010.

The rate is the highest seen since March 1987, and marks the 30th consecutive month the Arkansas jobless rate has been above 7%. The August report also marks the fourth consecutive month of jobless rate increases in Arkansas.

Arkansas was one of 11 states to post an unemployment rate increase in August compared to August 2010.

“Arkansas’ unemployment rate rose one-tenth of a percentage point in August, as the civilian labor force and the number of employed continued to decline," said DWS Communications Director Kimberly Friedman.

The companion monthly survey of employers showed that key industry sectors were volatile. Construction jobs tumbled by 1,300 between July and August. Leisure and hospitality employment took a seasonal downturn of 1,000.

Employment in the education and health services rose by 1,000 and government jobs jumped by 6,700 as the teacher workforce returned from summer break.

During the last 12 months, leisure and hospitality jobs have grown by a net 6,000 new workers, while professional and business services have climbed 3,100 jobs higher.

Manufacturing employment has fallen by 5,100 workers in the last year, while construction jobs have declined by 1,600.

Rising unemployment couldn’t come at a worse time as the state and nation grapple with a variety of economic indicators and consumer confidence issues that suggest a waning recovery. Also, unemployment benefits in Arkansas have come under renewed scrutiny when a Wall Street Journal analysis of federal labor statistics showed that Arkansas may have overpaid $161 million in jobless claims during the past 3 years.

The Oklahoma jobless rate was 5.6% in August, up from 5.5% in July, and down from the 7% in August 2010. The U.S. rate during August was 9.1%, unchanged from July and down from 9.6% in August 2010.

“Over the year, 25 states experienced statistically significant changes in
employment, 24 of which were increases. The largest increase occurred in Texas
(+253,200), followed by California (+171,300), New York (+83,400), Ohio (+80,300),
and Michigan (+79,800). The only state with an over-the-year statistically
significant decrease in employment was Georgia (-29,500),” noted the BLS report.