Arkansas jobless rates declines to 5.1%, state labor pool continues to grow as Fed rate hike looms

Arkansas’ jobless rate fell in tandem with the rest of the nation in October as government, education, health services and the trade and transportation sectors continued to add workers to state payrolls headed into the heart of the holiday season.

Labor force data, produced by the U.S. Department of Labor, Bureau of Labor Statistics and released Friday (Nov. 20) by the Arkansas Department of Workforce Services, shows that Arkansas’ seasonally adjusted unemployment rate declined one-tenth of a percentage point, from 5.2% in September to 5.1% in October.

“October marks the fifth consecutive month that Arkansas’ unemployment rate has declined and the twenty-third straight month that employment has increased,” noted Arkansas’ BLS Program Operations Manager Susan Price. “The number of employed in Arkansas is up 37,600 compared to October 2014.”

There were 1,300 fewer unemployed and 1,200 more employed Arkansans in the month. The United States’ jobless rate decreased one-tenth of a percentage point, down to 5% in October as 43 states across the union and the District of Columbia saw jobless rate declines from September. There were a whopping 271,000 jobs added to the U.S. economy in October, spurring predictions that the Fed will raise interest rates at the Dec. 15 FOMC meeting.

Year-over-year, the state’s jobless rate is down seven-tenths of a percentage point from 5.8% in October 2014. The civilian workforce now stands at a strong 1,337,200 workers, down slightly from August’s yearly high of 1,338,500, but still 2.3% better than the 1,306,600 workers in the labor force a year ago.

Construction continues to lead the state’s overall job growth over the past year, adding 8,200 workers before heading into the fiscal fourth quarter for most Arkansas businesses. Education and health services and professional and business services followed with the addition of 5,400 and 4,400 workers respectively. Manufacturing continued as the biggest loss leader with a drop of 3,900, followed by the state’s oil and gas sector (mining) dropping 700 positions.

Meanwhile, Arkansas nonfarm payroll employment rose by 12,300 to 1,219,400, up from 1,201,100 in September. October marks the fifth consecutive month the nonfarm level set a new record. Prior to June, the record was 1,209,800 in July 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.

ARKANSAS SECTOR NUMBERS
Employment rose in six major industry sectors, while four sectors declined. Arkansas’ largest job sector – the Trade, Transportation and Utilities sector – gained 1,100 workers in October, edging up to 246,700 from September’s 245,600 and slightly better than 246,300 a year ago.

Manufacturing jobs in Arkansas rebounded by 600 to 153,000 in October, moving off of September’s yearly low of 152,400. Still, the total number of blue collars jobs in Arkansas is well below year ago levels of 156,900, heading into the fourth quarter when factory output traditionally fades. Once the state’s largest industry sector, manufacturing employment peaked at 247,300 in February 1995.

With the 2015-2016 school year well under way, Arkansas government growth slowed in October with a loss of 500 workers. There were 12,900 jobs added to payrolls in September at the start of Arkansas’s school year. There were 216,900 government jobs in October, compared to 214,700 in September. This month’s total of 216,9000 is slightly below the 217,400 government workers on state payrolls a year ago.

The state’s Education and Health Services sector during October had 180,500 jobs, up from 179,400 in August and 175,100 a year ago. October marked another new record for employment in the sector.

The bellwether construction sector lost ground in October, consistent with industry reports that the building trade was slowing ahead of expected interest rate hikes by the Federal Reserve in December. There were 54,600 workers employed in that sector for the month, down 700 from 55,300 in September and 46,400 in October 2014.  This sector touched an employment high of 57,600 in March 2007.

With the state’s Department of Tourism transitioning to new leadership, Arkansas’ second largest industry sector (leisure & hospitality) employed 112,400 during October, down 2,100 from the previous month, but still better than 109,200 jobs held by state workers a year ago. The sector reached a record high in February with employment of 114,800.