Labor Force Is Strong But Boomers Are Retiring

More residents are getting back to work or looking for jobs in Northwest Arkansas and across the United States, but some economists don’t expect the growth in the labor force to continue as baby boomers retire.

Nearly 18,000 more area residents were seeking employment or were working in February compared to the same month last year, according to data from the Bureau of Labor Statistics.

 “Our local economy’s pillars of corporate headquarters, the University of Arkansas, the expanding healthcare sector, and all the associated service industries have really been shining in the past few quarters,” said Philip Whitehead, senior vice president and commercial relationship manager with Bank of Arkansas.

The labor force increased to 262,828 in February from 245,592 in the same month in 2015.

“This strong economy continues to lead to population growth and labor force growth with the labor force up to an all-time high of 262,000 in February 2016,” Whitehead said.

In the past year, the biggest jump happened between January and February. Almost 8,000 more residents sought employment or were working in February compared to the previous month. The labor force was at 255,142 in January.

Across the nation, more Americans are working or have started looking for work at the fastest rate since 1948, according to Bloomberg. However, economists say this isn’t expected to last as baby boomers retire.

Meanwhile, the unemployment rate in Northwest Arkansas was 3.3 percent for February. That’s a 1.1 percent decrease from the same month in 2015.

“This dynamic economy has produced employment growth while the unemployment rate has declined to 3.3 percent,” Whitehead said. “The Northwest Arkansas economy has continued to outperform the national economy by a wide margin.”

The national unemployment rate was 5 percent in March, compared to 5.5 percent in the same month in 2015.