Arkansas’ labor market continues decline, nonfarm payroll number rises

The September labor report is more of the same. Arkansas’ jobless rate fell to 6.2% compared to 7.7% in September 2013, although the size of the workforce fell by 1.89% and the number of employed dropped by 0.37% in the year-over-year comparison.

There are an estimated 25,112 fewer Arkansans in the workforce and 4,648 fewer Arkansans employed in September compared to September 2013. The September numbers, released Tuesday (Oct. 21) by the U.S. Bureau of Labor Statistics, are subject to revision.

Arkansas’ labor force was an estimated 1.299 million in September, above the 1.296 million in August, but down 1.89% compared to 1.325 million in September 2013. There are 67,511 fewer Arkansans in the labor force compared to the peak (1.367 million) in May 2008, a decline of 4.93%.

The number of employed in Arkansas during September was 1.218 million, above August employment of 1.214 million, and down an estimated 4,468 jobs compared to September 2013. The number of unemployed was an estimated 81,014 during September, below the 81,863 in August, and well below the 101,478 in September 2013.

NONFARM PAYROLL GAINS
Although the top line numbers continue a downward trend, economic researcher Greg Kaza said said nonfarm payroll numbers are trending in the right direction. The nonfarm category does not include farm workers, private household employees, non-profit employees and “general government” employees. Investopedia estimates that the nonfarm category represents about 80% of the total workforce that contribute to national GDP.

Nonfarm payroll during September was estimated at 1.194 million, better than the 1.191 million in August and up 17,700 jobs over nonfarm payroll of 1.176 million in September 2013.

“Last month's gain was greater than the average Arkansas September gain of 13,117 in the expansion that started in mid-2009,” said Kaza, who is executive director of the Arkansas Policy Foundation. “We need more reports like September's in the other 11 months so Arkansas can equal the U.S. average during this expansion. Arkansas employment has increased 2.8 percent versus the U.S. average of 6.5 percent in the expansion.”

Nonfarm jobs reached a high in Arkansas of 1,209,800 in February 2008.

Arkansas’ annual average jobless rate fell from 7.9% during 2011 to a revised 7.5% during 2012. The initial annual average jobless rate for Arkansas during 2013 is 7.5%.

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during September was an estimated 244,400, up from 243,900 in August and ahead of the 241,100 during September 2013. Employment in the sector hit a high of 251,800 in March 2007.

Manufacturing jobs in Arkansas during September totaled 154,800, down from 155,500 in August and above the 151,900 in September 2013. Employment in the manufacturing sector fell in 2013 to levels not seen since early 1968. Peak employment in the sector was 247,300 in February 1995.

Government job employment during September was 214,500, down from 214,800 in August and below the 215,700 during September 2013.

The state’s Education and Health Services sector during September had 175,500 jobs, up from 174,700 during August and up from 171,700 during September 2013. Employment in the sector is up 22.7% compared to September 2004.

The construction sector employed an estimated 48,800 in September, up from 48,000 in August and above the 44,400 in September 2013. The sector is off the employment high of 57,600 reached in March 2007.

Arkansas’ tourism sector (leisure & hospitality) employed 108,800 during September, down from a revised 109,000 during August, and above the 105,500 during September 2013. Employment in this sector reached a high of 109,100 in March.

NATIONAL, REGIONAL DATA
The BLS report also noted that 42 states had unemployment rate decreases from a year earlier, five states had increases and three states had no change. The national jobless rate during September was 5.9%, down from the 7.2% in September 2013.

Georgia had the highest unemployment rate among the states in September at 7.9%. North Dakota again had the lowest jobless rate at 2.8%.

The September jobless rate in Oklahoma was 4.7%, unchanged compared to August and down from 5.6% in September 2013.

Missouri’s jobless rate during September was 6.3%, unchanged compared to August and down from 6.4% in September 2013.