Craighead County, northeast Arkansas see unemployment rates drop

Jonesboro Mayor Harold Perrin said the old saying about not being able to build an oasis in a desert has been turned on its head when it comes to lower unemployment rates in Craighead County and the rest of northeast Arkansas.

According to the Bureau of Labor Statistics, the unemployment rate in Craighead County has dropped from 5.8% in January 2015 to 3.9% in January 2016. Also, all 12 counties in northeast Arkansas posted lower year-over-year unemployment rates in January. The biggest drops were in Jackson (11.3% to 7.6%) and Randolph (10.4% to 6.7%) counties, while Poinsett County fell from 7.5% to 5.3% over the same period.

Perrin said the numbers, especially in Craighead County, are a trend due to the county and the city of Jonesboro being a regional hub for jobs and people spending money.

“We have had a lot of expansions and add ons in the past year or so,” Perrin said, noting the growth has happened all over town.

A $400 million hospital was built on U.S. 49 by NEA Baptist in 2013, while St. Bernards Healthcare announced plans for a $130 million expansion last year. The NEA Baptist project, Perrin said, created a tidal wave in the northwest part of town. Since then, doctors offices and restaurants have sprouted up along the highway. A big part of the growth has been retail, with at least a half dozen restaurants opening on Red Wolf Boulevard.

“Take Buffalo Wild Wings, for instance. When a restaurant opens, you might think 10 or 20 jobs. But they have 60, 70, 80 employees there,” Perrin said. “So you see a large number.”

The increased economic growth has not escaped the attention of Jonesboro Regional Chamber of Commerce President Mark Young. Young said the local economy has seen increases in manufacturing, retail and healthcare.

“We have seen it in every sector. But of equal importance is the fact that our civilian labor force number is up. That is a key for continued economic growth,” Young said.

According to the Arkansas Department of Workforce Services, the number of people working in Craighead County has gone up in the past five years. In January 2015, 47,675 of the 50,600 people available to work in Craighead County had a job. The number was down from January 2014, when 44,350 people out of 47,675 were working and up slightly in January 2013, when 44,375 out of 48,150 had a job. In January 2012, the state agency noted 45,325 out of 49,050 were working.

Young said the area benefits from having Arkansas State University and the Arkansas State University Technical Center in Jonesboro, to help with workforce training and building skills.

“Workforce development and workforce training continue to be important,” Young said, noting organizations around the state have been working on the issue for some time.

NEW CONSTRUCTION
Young and Perrin also said construction has played a huge role. The Jonesboro city inspections office handled nearly $140 million worth of building permit requests in 2015, down slightly from $146.1 million in 2014, officials said earlier this year. The office processed 671 requests in 2015, with 384 of the requests being done between April and September.

At least 43%, or 291 of the 671, were made to build new homes or buildings, while the permits for 30 commercial buildings were asked for. Among the major requests for 2015 were:
• 2407 Quality Way (Unilever), $8.9 million commercial addition;
• 225 East Jackson Ave. (St. Bernards Healthcare), $6.7 million commercial addition; and
• 1004 Windover Road (Forest Home Church of the Nazarene), $4.475 million commercial building (church).

There were also several construction projects announced last year. Officials with Frito Lay announced last April a $45.7 million, 80,000-square-foot expansion at its plant in the Industrial Park while Hytrol Conveyor Co. announced in June plans for a $12 million, 62,000-square-foot expansion to its factory on Highland Drive.

Perrin said the city has also seen some growth in the grocery and drug store sector. A new Kroger was built on Caraway Road, while Walmart has opened two Neighborhood Markets (on Harrisburg Road and just off Red Wolf Boulevard). A CVS pharmacy is also being built on Southwest Drive, and a Krispy Kreme donut restaurant opened earlier this month on Nettleton Avenue.

Josh Brown, with Haag Brown, said the Krispy Kreme and CVS projects, and the planned Starbucks on Southwest Drive, will have about 30 to 80 employees per project. The numbers ado not take into account the construction jobs created.

GROWING PAINS
The increased economic activity raises issues Perrin said city officials deal with almost daily. The increased number of people working resulted in more people using the Jonesboro city bus system, called JET. The system had nearly 100,000 riders last year and has averaged about 6% to 8% increases per month, Perrin said.

The other key is infrastructure, Perrin said.

“How do we get ready? You have highway, ingress and egress,” Perrin said.

Perrin and city officials will be in Little Rock this week to talk to highway officials about the Highland Drive/Nettleton Avenue project. The $15 million project will build an overpass through the area, with supporters citing safety and traffic concerns as reasons for the project. Bids are expected to go out for the project in September 2016, Perrin said.

Another project is the extension of Parker Road, connecting Southwest Drive to Washington Avenue. Perrin said the $2.2 million project will provide some relief for motorists battling traffic on Southwest Drive.