Revised numbers show Arkansas’ jobless rate rises to 3.7% in January

Arkansas’ jobless rate rose to 3.7% in January from 3.4% in January 2023 even with year-over-year employment gains in Education and Health Services and the Construction sectors., according to a U.S. Bureau of Labor Statistics report posted Monday (March 11).

The number of employed in Arkansas during January was an estimated 1,334,478, up 8,529 jobs, or 0.64%, compared with January 2023, and above the 1,334,018 in December. The January numbers include revised BLS data.

Arkansas’ labor force, the number of people eligible to work, in January was 1,385,260, up 1.34% from the 1,366,856 in January 2023, and above the 1,384,754 in December. The labor force participation rate was 57.5% in January, better than the 57.3% in January 2023.

Arkansans without jobs in January totaled 50,782, slightly higher than the 50,736 in December, and up 24.1% compared with the 40,907 in January 2023.

The biggest year-over-year sector gains were in Education and Health Services (6,800 more jobs) and Construction (6,400 more jobs), January saw record employment in the Construction and Trade, Transportation and Utilities sectors.

Michael Pakko, chief economist and state economic forecaster at the University of Arkansas at Little Rock’s Institute for Economic Advancement, noted that the federal revisions shows that Arkansas job numbers were not as strong as initially reported.

“As expected, the new data show that the sharp dip in unemployment recorded in mid-2023 was not as large as originally reported. Instead of showing a dip to 2.6% in June and July, the revised data show that the unemployment rate bottomed-out at 2.8% in March and April.  The new data also show a more pronounced rise in the unemployment rate over the second half of 2023, with the December rate being revised upward from 3.4% to 3.7%,” Pakko said.

He also said the number of Arkansans without jobs fell to just under 40,000 at its low point instead of down to the 35,600 previously reported by the BLS.

NATIONAL NUMBERS
Unemployment rates were higher in January in 4 states, lower in 2 states, and stable in 44 states and the District of Columbia, according to the BLS report. Twenty-five states had jobless rate increases from a year earlier, 6 states had decreases, and 19 states had little change. The U.S. unemployment rate was 3.7 % in January, up from 3.4% in January 2023.

Nonfarm payroll employment increased in 8 states and was essentially unchanged in 42 states and the District of Columbia in January 2024. Over the year, nonfarm payroll employment increased in 27 states and was essentially unchanged in 23 states and the District.

North Dakota had the lowest jobless rate in January at 1.9%. The next lowest rate was in South Dakota at 2.1%. Nevada had the highest unemployment rate at 5.3%, followed by California at 5.2%. In total, 16 states had unemployment rates lower than the U.S. figure of 3.7%, 7 states had higher rates, and 27 states had rates that were not appreciably different from that of the nation.

JOB SECTOR NUMBERS
Trade, Transportation, and Utilities
January 2024: 269,200
December 2023: 268,200
January 2023: 267,000
January marked an employment record for the sector.

Government
January 2024: 211,800
December 2023: 211,600
January 2023: 209,100
Sector employment hit a peak of 224,100 in May 2010.

Education and Health Services
January 2024: 211,100
December 2023: 211,100
January 2023: 204,300
December first marked an employment record for the sector with 211,100 jobs.

Manufacturing
January 2024: 159,900
December 2023: 159,900
January 2023: 163,500
Manufacturing, once the state’s largest jobs sector, posted record employment of 247,600 in February 1995.

Professional and Business Services
January 2024: 155,200
December 2023: 155,000
January 2023: 157,400
May 2023 marked an employment record for the sector with 158,100 jobs.

Leisure and Hospitality
January 2024: 127,100
December 2023: 126,600
January 2023: 127,000
May 2023 first marked a new employment record for the sector with 127,300 jobs.

Financial Activities
January 2024: 70,400
December 2023: 70,900
January 2023: 70,400
December marked a new employment record for the sector.

Construction
January 2024: 67,600
December 2023: 66,100
January 2023: 61,200
January marked a new employment record for the sector.