Arkansas jobless rate touches all-time low at 4.2%

Arkansas’ jobless rate fell two-tenths of a percentage point in February to an all-time low of 4.2%, well below the nation’s unemployment rate of 4.9% and well ahead of year-ago levels when 5.5% of the state’s labor pool was unemployed, according to the figures released Friday (March 25) by the U.S Bureau of Labor Statistics (BLS).

In January, Arkansas’ seasonally adjusted unemployment rate fell to 4.4%, down from December’s revised 4.7%. Now at 4.2% jobless rate, the state’s labor pool is brimming with 1,351,766 workers, a result of 10,702 more employed and 2,342 fewer unemployed Arkansans for a net gain of 8,360.

“Arkansas’ unemployment rate has been in a steady decline, down one and four-tenths of a percentage point over the year,” said BLS Program Operations Manager Susan Price. “The state is now seven-tenths of a percentage point lower than the national rate.”

Overall, the Arkansas civilian labor force has added 18,500 workers in 2016 and nearly 28,785 workers in the past year, up 2.2% from 1.343 million in February 2014. The peak for Arkansas’ labor force was 1.376 million in August 2008.

Earlier this month, the nation’s economy added 242,000 workers to the U.S. economy. Total nonfarm payroll employment rose by 292,000 and 151,000 in December and January, respectively, and the unemployment rate settled at 4.9% after stalling at 5% in October, November and December, U.S. Labor Department officials said.

In December, Arkansas’ jobless rate fell below to 5% for the first time since June 2001 as the state’s labor pool climbed to 1,337,500 in December and the unemployment rate fell to the now revised 4.7% from the previous 4.8%.

According to state Workforce Department officials, Arkansas’ lowest-ever seasonally adjusted unemployment rate is 4.2%, which was touched several consecutive months in 2000. The last time the state’s jobless rate fell to this level was in December 2000, DWS officials said. The preliminary average monthly jobless rate in Arkansas during 2015 was 5.4%. Arkansas’ average jobless rate for 2014 was 6.1%, down 1.3% from the 7.4% average in 2013.

Overall, Arkansas’ civilian labor force increased a robust 6,146, a result of 10,142 more employed and 3,996 fewer unemployed Arkansans. The size of the workforce was 1.343 million, up 1.7% from 1.321 million in December 2014.

Sectors leading the year-over-year gains were trade, transportation and utilities (+9,600), leisure and hospitality (+8,000), and education and health services at 6,100, and professional business services with 2,200 new jobs. Professional-scientific-technical services (+2,000) and management of companies (+1,700) also reported gains.

In the losing column, the state’s mining sector, which includes the oil and gas sector, posted the largest loss with a decline of 1,600 jobs. The state’s manufacturing sector, which has been in a year-long slump, lost 1,500 workers in February.

However, the closely watched nonfarm payroll employment rebounded from January to add 11,300 workers to February’s tally of 1.22 million. Seven major industry sectors posted gains, while two sectors declined and two were unchanged. The nonfarm number topped the 1.2 million mark in December 2014, 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.

In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment rose to a new all-time high with an estimated 255,100 workers in the labor pool, compared to 254,500 in January and well ahead of the 245,500 in February 2015.

The state’s fast-growing Education and Health Services sector climbed by 1,100 to 179,400 in February. That compares with 178,300 in January and a robust 6,100 better than a year ago. This sector has seen steady growth in the past decade, with employment in the sector up more than 22% since November 2005.

Manufacturing jobs in Arkansas declined for the second consecutive month after a surprising rebound in December as the number of blue-collar workers fell to 154,100, down 100 from 154,200 in January and well below year ago levels of 155,600. Employment in the manufacturing sector fell in October to levels not seen since early 1968. Peak employment in the sector was 247,300 in February 1995.

Government hiring bumped up again in February to 216,300 workers, compared to 211,300 in January and 215,800 a year ago. The number of local, state and federal government jobs in February rose by a whopping 5,000.

The construction sector employed an estimated 47,700 in February, slight up from January’s 47,700 and well above the 46,200 level in the same period of 2015. The sector is well off the employment high of 57,600 reached in March 2007.

Arkansas’ growing tourism sector (leisure & hospitality) employed 114,100 in February, a stark improvement from 11,400 in January and well above year ago levels of 106,100.