The Compass Report: Economic growth continues in Arkansas’ top metro areas
Arkansas’ top four metro areas continued in the second quarter of 2024 to enjoy economic growth, albeit at a slower rate than in previous quarters, according to the latest The Compass Report. The construction sector was a top performer in all four regions.
In the second quarter 2024 (April-June) report, Central Arkansas received an “B” grade, the Fort Smith metro had a “B+” grade, the Jonesboro area received a “C-” grade, and Northwest Arkansas had a “B+” grade.
The Compass Report is a partnership between the University of Arkansas at Fort Smith (UAFS) and Talk Business & Politics. First National Bank of Fort Smith is a sponsor of the statewide report.
Kendall Ross, UAFS associate vice chancellor of Economic and Workforce Development, and Troy Rodriguez, a data analyst in the UAFS Center for Economic Development who helps compile, manage and review the data, are responsible for data collection and written analysis for the report.
The report measures four leading and four current economic indicators to provide a grade for a regional economy. The eight categories measured to determine The Compass Report grade in the Central Arkansas, Fort Smith and Northwest Arkansas areas are total nonfarm jobs, unemployment rate, building permits, sales tax revenue, manufacturing jobs, service sector jobs, construction jobs, tourism jobs and concentration of manufacturing jobs. Because the data is not available, construction and tourism jobs are not included in the Jonesboro metro grade.
A key factor in understanding the report is in understanding the “grading” approach used to measure the current and leading economic indicators. For example, a grade of “C” reflects no change in economic activity. The grades “B” or “A” indicate improvement above the historical average, and “D” and “F” indicate a decline in economic activity compared to the historical average.
TOP TAKEAWAYS
Following are some of the key takeaways from Ross and Rodriguez included in The Compass Report.
Central Arkansas
Nonfarm employment in Central Arkansas grew steadily during the second quarter of 2024. The region added approximately 11,100 jobs between June 2023 and June 2024, representing a 2.8% increase. By June 2024, nonfarm employment in the area reached 400,800 jobs, up from 389,700 jobs in June 2023. This growth was consistent throughout the quarter, with employment rising from 397,300 in April to 398,400 in May.
Fort Smith metro
Nonfarm employment in the Fort Smith Metro area demonstrated robust growth during the second quarter of 2024, up 2.6% June-on-June (3,000 new jobs). The total nonfarm employment in June 2024 was an estimated 118,500 jobs compared to 115,500 in June 2023. This marked a continuation of job growth seen earlier in the quarter, with 117,800 jobs in April and 118,500 jobs in May.
Jonesboro metro
Nonfarm employment in the Jonesboro metro area showed modest growth in the second quarter of 2024. The region added only 200 jobs from June 2023 to June 2024, representing a minimal increase of 0.3%. Nonfarm employment was 65,200 in June 2024, compared to 65,000 in June 2023. Employment numbers were stagnant for much of the quarter, with 64,600 jobs in April and 64,900 in May 2024.
Northwest Arkansas
Nonfarm employment in Northwest Arkansas continued to expand during the second quarter of 2024, maintaining the region’s long-standing economic growth. The metro area added approximately 8,500 jobs from June 2023 to June 2024, an increase of 2.8%. By June 2024, nonfarm employment stood at 314,100, up from 305,600 in June 2023. Growth remained consistent throughout the quarter, with 313,800 jobs in April and 314,800 in May.
DATA AND MORE ANALYSIS
Link here for the second quarter 2024 raw data gathered by the University of Arkansas at Fort Smith Center for Economic Development.
Link here for the quarterly narrative. Also, link here for the previous reports.