Arkansas Jobless Rate Dips To 5.6% In July, Construction Jobs Up 15%

Editor’s note: This story is a component of The Compass Report. The quarterly Compass Report is managed by The City Wire and is sponsored in the Fort Smith area by Arvest. Supporting sponsors of The Compass Report are Cox Communications and the Fort Smith Regional Chamber of Commerce.

More than 43,000 were employed in Arkansas in July compared to July 2014, and the July jobless rate fell to 5.6% from 5.7% in June. The July 2014 jobless rate was 6%. The state’s jobless rate has been at or below 6% for 13 consecutive months.

The size of the workforce – 1.336 million – was up 3.1% compared to July 2014, but was down compared to June, according to the figures released Friday (Aug. 21) by the U.S. Bureau of Labor Statistics. The peak for Arkansas’ labor force was 1.376 million in August 2008.

The number of employed in Arkansas during July was 1.262 million, up 965 jobs over June and up 3.57%, ore 43,554 jobs, compared to July 2014. The number of unemployed was an estimated 74,461 during July, below the 75,778 in June, and below the 77,802 in July 2014.

Leading the year-over-year job gains were the construction sector (+6,800) education and health services sector (+5,300 jobs), and leisure and hospitality (+4,900).

The closely watched nonfarm payroll number was 1,213,800 in July, better than the 1,212,600 in June and up over the 1,185,400 in July 2014. If the July number stands, it marks a new high for the sector. Nonfarm jobs set a new high of 1,209,900 in February. Prior to that, nonfarm jobs reached a high in Arkansas of 1,209,800 in February 2008.

The nonfarm number topped the 1.2 million mark in December, the first time since September 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.

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.

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during July was an estimated 248,300, just below the 248,400 in June and ahead of the 244,500 during July 2014. Employment in the sector hit a high of 251,800 in March 2007.

Manufacturing jobs in Arkansas during July totaled 153,400, below the 153,900 in June and below the 154,300 in July 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 July was 213,900, up from 213,500 in June and unchanged compared to July 2014.

The state’s Education and Health Services sector during July had 177,400 jobs, unchanged from June and up from 172,100 during July 2014. Employment in the sector is up 21.17% compared to July 2005. June and July levels marked a new record for employment in the sector.

The construction sector employed an estimated 52,300 in July, up from 50,500 in June and above the 45,300 in July 2014. The sector is off the employment high of 57,600 reached in March 2007.

Arkansas’ tourism sector (leisure & hospitality) employed 112,400 during July, down from 113,100 during June, and above the 107,500 during July 2014. The sector hit a record high in February with employment of 114,800.

NATIONAL, REGIONAL DATA
The BLS report also noted that 41 states had unemployment rate decreases from a year earlier, six states had increases and three states were unchanged. The national jobless rate during July was 5.3%, down from 6.2% in July 2014.

West Virginia had the highest unemployment rate among the states in July at 7.5%. Nebraska had the lowest jobless rate at 2.7%.