Labor numbers positive for Arkansas in January, jobless rate dips to 5.6%

Labor market numbers moved in the right direction for Arkansas during January, with the number of employed up more than 3%, the workforce size up more than 2% and unemployment down 13.09%.

Arkansas’ January jobless rate fell to 5.6% compared to 6.6% in January 2014, and down from 5.7% in December, according to figures released Tuesda (March 17) by the U.S. Bureau of Labor Statistics. The January numbers are subject to revision.

Arkansas’ average jobless rate for 2014 was 6.1%, down 1.3% percentage points from the 7.4% average in 2013. It is the first time the annual average dropped below 7% since 2008.

The size of the workforce – 1.321 million – was up 2.07% compared to January 2014, and was better than the 1.312 million in December. The peak for Arkansas’ labor force was 1.376 million in August 2008.

The number of employed in Arkansas during January was 1.247 million, above December employment of 1.238 million, and up 3.14%, or an impressive 38,030 jobs compared to January 2014. The number of unemployed was an estimated 74,365 during January, slightly above the 74,294 in December, but well below the 85,567 in January 2014.

The closely watched nonfarm payroll number was 1.206 million in January. The nonfarm number topped the 1.2 million mark in December, the first time since January 2008. 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 contributes to national GDP.

Nonfarm payroll during January was better than the 1.204 million in December and up over the 1.179 million in January 2014. Nonfarm jobs reached a high in Arkansas of 1,209,800 in February 2008.

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during January was an estimated 249,200, up from 248,900 in December and ahead of the 242,300 during January 2014. Employment in the sector hit a high of 251,800 in March 2007.

Manufacturing jobs in Arkansas during January totaled 155,600, down from 157,400 in December but above the 152,900 in January 2014. Employment in the manufacturing sector fell in 2014 to levels not seen since early 1968. Peak employment in the sector was 247,300 in February 1995.

Government job employment during January was 213,100, down from 213,200 in December and below the 213,200 during January 2014.

The state’s Education and Health Services sector during January had 173,500 jobs, unchanged compared to December and up from 171,700 during January 2014. Employment in the sector is up 19.8% compared to January 2005.

The construction sector employed an estimated 49,700 in January, up from 47,400 in December and above the 46,500 in January 2014. The sector is off the employment high of 57,600 reached in March 2007.

Arkansas’ tourism sector (leisure & hospitality) employed 112,800 during January, down from 113,100 during December, and above the 106,200 during January 2014. The December employment marked a record for the industry.

NATIONAL, REGIONAL DATA
The BLS report also noted that 45 states had unemployment rate decreases from a year earlier, three states had increases and two states had no change. The national jobless rate during January was 5.7%, down from the 6.6% in January 2014.

Mississippi and Nevada had the highest unemployment rate among the states in January at 7.1%. North Dakota again had the lowest jobless rate at 2.8%.

The January jobless rate in Oklahoma was 3.9%, unchanged compared to December and down from 5% in January 2014.

Missouri’s jobless rate during January was 5.5%, up compared to 5.4% in December and down from 6.4% in January 2014.