Arkansas’ jobless rate hits another record low at 3.7% in February, state now full point below U.S. average

Arkansas’ jobless rate touched another all-time low of 3.7% in February as the state’s brimming labor pool added nearly 1,500 new workers and nonfarm employment jumped by 15,600 between months, according to U.S. Bureau of Labor Statistics data released Friday (March 24).

The February report comes only 11 days after Arkansas Department of Workforce Services (ADWS) officials reported that the state unemployment rate in January matched an all-time low of 3.8%, first touched in May and June of 2016.

According to ADWS, Arkansas’ seasonally adjusted unemployment rate declined one-tenth of a percentage point between January and February. Arkansas’ civilian labor force rose by 1,436, a result of 2,464 more employed and 1,028 fewer unemployed Arkansans.

“Arkansas’ unemployment rate declined one-tenth of a percentage point in February, breaking last month’s record low of 3.8%,” said BLS Program Operations Manager Susan Price. “(This) month’s unemployment rate is a new record low for Arkansas.”

Nearly two weeks ago, the U.S. Labor Department officials reported that the U.S. economy added a healthy 235,000 jobs in February as employers in the construction trade, manufacturing sector, health care field and private education services added nearly half of the new positions. The U.S. jobless rate in February remained steady at 4.7%, down from 4.8% in January when employers added 227,000 to the payrolls. Over the past year, the nation’s unemployment figure has held at a range between 4.6% on the low end in November and 5% in March and April of 2016.

ARKANSAS, OREGON HIT HISTORIC LOWS
Overall, Arkansas’ unemployment rate initially touched an all-time low of 3.8% ten months ago, and has fallen below 4% in eight of the past 12 months. The state’s low unemployment rate and growing labor pool has been a point of emphasis for Gov. Asa Hutchinson’s administration since he took office more than two years ago.

The state’s civilian work force peaked at a record high in August 2008, when there were 1,376,951 workers in the labor pool and the jobless rate was at 5.5%, state workforce officials said. That tally included 1,300,795 employed workers, and 76,156 seeking work, DWS data shows. Today, there are 1,337,882 workers in the civilian labor pool, down 7,398 from a year ago when the state’s unemployment rate was 4.9%.

According to the U.S. Bureau of Labor Statistics, unemployment rates were significantly lower in February in 10 states, higher in 1 state, and stable in 39 states and the District of Columbia. New Hampshire had the lowest unemployment rate in February at 2.7%, closely followed by Hawaii and South Dakota at 2.8% each, and Colorado and North Dakota at 2.9% each. The rates in Arkansas and Oregon (4%) were historical lows, BLS data shows.

On the other hand, New Mexico had the highest jobless rate at 6.8%, followed by Alaska and Alabama, 6.4% and 6.2%, respectively. In total, 19 states had unemployment rates significantly lower than the U.S. figure of 4.7%, 6 states and the District of Columbia had higher rates, and 25 states had rates that were not appreciably different from that of the nation.

ARKANSAS SECTOR DETAILS
In Arkansas, the benchmark nonfarm employment rebounding from last month’s decline of 24,300 payroll jobs, adding 15,500 position in February to a total of 1,233,800 as seven major industry sectors posted job losses and three sectors saw declines.

Professional and business services added 6,300 jobs with a majority of the increase in administrative and support services. Jobs in government rose 5,000, mainly because of the re-opening of public schools after the winter break.

In February, Trade, Transportation and Utilities sector – Arkansas’ largest job sector – employment declined by 700 to an estimated 259,900 workers in the labor pool, compared to 250,600 in January and 249,000 a year ago.

Education and Health Services sector rose by 2,600 in February now has 187,100 workers in the state’s declining labor pool, compared with 184,500 in January and 178,700 in the same period a year ago. This sector has seen steady growth in the past decade, with employment in the sector up almost 20% since May 2006 and 6.5% in the past year.

Manufacturing jobs in Arkansas continue to hold ground with a gain of 100 positions in February, a slight improvement from 156,300 in January and up 2,1000 from 154,300 in February 2016. The sector saw peak employment more than 20 years ago when employment topped out at 247,300 in February 1995.

Government hiring in the state continued rose by 5,000 workers in February, rebounding from last month’s seasonal decline. There are now 214,500 government workers on state payrolls, now the second-largest nonfarm sector behind Trade, Transportation and Utilities. A year ago, there were 216,100 government jobs in Arkansas.

The construction sector gained some momentum in February, gaining 1,200 as employers prepare for spring projects. There are now 49,300 construction jobs in Arkansas, compared to 48,100 in January and 48,600 a year ago. The sector is well below the employment high of 57,600 reached in May 2007.

Arkansas’ healthy tourism sector (leisure & hospitality) added 2,000 workers as the state’s parks and recreation and tourist destinations make preparations this month for spring break. There are now 112,500 workers in the state’s tourism sector, compared to 110,500 in January and 110,800 in the same period a year ago.