Arkansas’ jobless rate up slightly to 4%, state’s labor pool tightens as employers seek to fill vacant positions

Arkansas’ jobless rose one-tenth of a percentage point in September as the state’s civilian pool continues to tighten amid anecdotal reports from employers and businesses across the state acknowledging struggles to find qualified workers to fill jobs vacancies.

Labor force data, produced by the U.S. Bureau of Labor Statistics and released Friday (Oct. 21) by the Arkansas Department of Workforce Services, shows Arkansas’ seasonally adjusted unemployment rate for September now 4%, up from 3.9% in August and well below the year ago level of 5%.

Still, Arkansas’ civilian labor force grew by 972, a result of 1,513 more unemployed and 541 fewer employed Arkansans. Today, there are 1,357,063 Arkansans working or seeking gainful employment as businesses across the state are increasing posting “want ads” to attract new hires.

According to the Federal Reserve’s recent October Beige Book report, local labor markets are tightening across St. Louis’ Eighth District as employers have reported high demand for labor in some industries, particularly in manufacturing, construction, healthcare, and financial services.

“A contact in Little Rock reported widespread difficulties in filling vacant positions, especially those in the skilled trades, while a contact in St. Louis reported difficulties in filling vacant information technology positions,” the report said of the Eighth District, which includes Arkansas and portions of Illinois, Indiana, Kentucky, Mississippi, the eastern half of Missouri and West Tennessee.

Still, U.S. Labor Department (DOL) Secretary Thomas Perez earlier this month praised the U.S. employment picture, citing the 156,000 new jobs added to the economy last month and labor force participation in the U.S. is now at 62.9%. According to DOL, there have been 15.3 million private jobs created since early 2010.

“The American economy in September again continued its strong recovery from the greatest economic crisis of our lifetimes, adding 156,000 jobs,” said Perez said, adding that 3 million people have entered the workforce over the past 12 months.

“This month’s report shows more people getting back to work and finding jobs,” he said.

In September, New Hampshire and South Dakota had the lowest jobless rates in September, 2.9% each. Alaska had the highest unemployment rate, 6.9%. In total, 20 states had unemployment rates significantly lower than the U.S. jobless rate of 5%, 9 states and the District of Columbia had higher rates, and 21 states had rates that were not appreciably different from that of the nation.

Nonfarm payroll employment has increased in 14 states in September 2016, decreased in three states, and was essentially unchanged in 33 states and the District of Columbia. Over the year, 35 states and the District added nonfarm payroll jobs,

Year to date, Arkansas’ jobless rate continues to trend near its lowest-ever seasonally adjusted unemployment rate of 3.8% in May. The preliminary average monthly jobless rate in Arkansas during 2015 was 5.4%. Arkansas’ average jobless rate for 2014 was 6.1%, down from the 7.4% average in 2013.

In Arkansas, the closely-watched nonfarm employment in Arkansas saw a jump of 15,500 positions in September to total 1,235,600. Four major industry sectors added jobs, more than offsetting small declines in six sectors.

Jobs in government rose 13,000 with gains in both local (+7,900) and state (+5,200) government related to seasonal hiring at public schools and universities. Educational and health services added 4,600 jobs, a majority of the additions were in educational services (+3,000) and hiring at private schools. On a rare positive note, employment in manufacturing rose by 1,000 workers as the state’s thriving nondurable goods sector reported hiring in food manufacturing. Trade, transportation and utilities decreased by 1,600 with losses occurred in wholesale (-1,100) and retail (-500) trade, both typical seasonal declines.

Compared to September 2015, Arkansas’ nonfarm payroll employment has increased 14,200.  Eight major industry sectors posted growth, while three sectors declined. In September, the Trade, Transportation and Utilities sector – Arkansas’ largest job sector – lost 1,600 positions and now has an estimated 254,600 workers in the labor pool, compared to 256,200 in August and 252,700 a year ago.

The manufacturing sector in Arkansas saw a strong gain of 1,000 workers for the month and now has 154,100 blue collar workers amid several job announcements by state and local economic developers. A year ago there were 154,800 manufacturing jobs in Arkansas, well-off peak employment of 247,300 in the sector in February 1995.

With school now in session, the Education and Health Services sector added a robust 4,600 jobs and now has 185,000 workers in the state’s overflowing labor pool, compared with 180,400 in August and 177,300 in the same period a year ago. This sector has seen steady growth in the past decade, with employment in the sector up 4.3% in the past year.

The government sector took on 13,000 workers in September as employees at public colleges and universities went back to worker. Gains at this level are typical as schools begin to reach maximum staffing levels for the school year, state labor officials said. There are now 215,200 government workers in the state’s growing labor pool, up 6.5% from 202,000 in August and nearly flat with 215,100 a year ago.

The construction sector employed an estimated 51,000 in September, down 400 when compared to August and below 52,300 in the same period a year ago. The sector is well off the employment high of 57,600 reached in May 2007.

Following the summer vacation season, Arkansas’ strong tourism sector (leisure & hospitality) laid off some 400 workers as   There are now 116,900 workers in the state’s tourism sector, down from 117,300 in September but well ahead of year ago levels of 114,500.

Mining and logging, which includes the state’s oil and gas sector, held steady as drilling and well production activity in the Fayetteville Shale slow gains momentum amid rising natural gas prices. There are now 6,500 mining jobs in Arkansas, the same as in August but down 15.6% from 7,700 workers a year ago.

The fast-growing professional and business services, however, lost steam in September as 600 workers were push to the sidelines. Still, there are now 144,500 workers in this sector, which is a year-over-year gain of 3,900 workers. Information and other services was slight down 100 workers to 13,600 workers compared to the previous month.