State jobless rate falls to 7.7%; manufacturing job numbers gain

Arkansas’ unemployment rate fell to 7.7% in May, with the number of unemployed dropping to its lowest point for the first five months of 2010 and manufacturing employment posting five consecutive months of growth.

Also, an increase of 4,200 government jobs in Arkansas during May helped the overall jobless figures.

The figures released Friday (June 18) by the U.S. Bureau of Labor Statistics shows the state with an estimated 105,071 unemployed, up 6.1% over May 2009, and up 57.4% over May 2008. Also, the number of employed in May was 1.256 million, down 0.9% compared to May 2009, and down 0.32% from the previous month.

Arkansas’ civilian labor force declined 5,300 between April and May, a result of 4,100 fewer employed and 1,200 fewer unemployed Arkansans.

“Arkansas’ unemployment rate has been fairly stable in 2010, ranging from a low of 7.6 percent in January to a high of 7.8 percent in both March and April. This month’s rate of 7.7 percent is consistent with this year’s trend,” Kimberly Friedman, communications director for the Arkansas Department of Workforce Services, said in a statement.

The U.S. jobless rate was 9.7% in May, down from 9.9% in April, but up over the 9.4% in May 2009. The Oklahoma unemployment rate in May was 6.7%, up from 6.6% in April and up from 6.5% in May 2009.

Arkansas’ manufacturing employment rose from 164,400 in March to an estimated 165,300 in May, a gain of 0.54%. The number of manufacturing jobs is up 4.8% between January and May 2010. More encouraging is that the battered manufacturing sector in Arkansas had more jobs in the sector during May (165,300) than in May 2009 (164,900).

“Most of the increase occurred in durable goods, as multiple transportation equipment and fabricated metal product manufacturing facilities reported employment advances,” Arkansas DWS noted in its report.

However, Arkansas’ manufacturing sector remains troubled. The manufacturing sector in Arkansas has lost 63,400 jobs in the past 10 years (May 2001-May 2010), or 27.7% of sector employment.

May employment data for the Fort Smith metro area is set for a June 30 release.

YEAR-OVER-YEAR
• Arkansas’ civilian labor force stood at an estimated 1.361 million in May, down 0.39% compared to April 2010 and down 0.43% compared to May 2009.

• Construction jobs fell to 51,800 in May from 51,900 in April. Jobs in the sector fell below 50,000 in February for the first time since December 1998.

• The number of government jobs grew sharply in May to an estimated 221,500. The level is 1.9% higher than April 2009 and 2.1% above May 2009.

• Trade, transportation and utilities, the largest sector in the Arkansas economy, temporarily halted an overall decline that began in January 2008. Jobs in this sector totaled 228,500 in May, up 0.92% from April 2010, but down 3% compared to May 2009. The sector has lost 21,700 jobs since January 2008.

• Arkansas’ tourism and hospitality sector continues to struggle, with May employment in the sector dropping to 98,300. The sector employed an estimated 99,500 in April, and 100,400 in May 2009. The sector reached an all-time employment high of 101,800 in August 2008, but has seen its numbers steadily fall since.