State jobless rate falls to 7.4%; 17 months above 7%
by August 20, 2010 11:01 am 65 views
Arkansas’ unemployment rate fell to 7.4% in July, with the state’s jobless rate now above 7% for 17 consecutive months. But that’s not even close to the longest stretch of high unemployment in Arkansas.
The June rate was 7.5%.
An estimated 7,604 person drop in Arkansas’ civilian labor force helped push the state’s July unemployment rate down to 7.4% despite an estimated 5,804 drop in the number of employed compared to June 2010.
Friday’s (Aug. 20) report from the federal Bureau of Labor Statistics places the number of unemployed in July at 99,119, a 2% drop from the 101,174 in July 2009, and a 1.7% Decrease compared to June 2010.
Arkansas’ jobless rate hit 7.8% in March, the highest point since May 1988. The U.S. July unemployment rate was 9.5%, unchanged from June 2010 and up from the 9.4% in July 2009.
“At 7.4 percent, Arkansas’ unemployment rate is the lowest so far this year. In the last two months, Arkansas’ rate has been comparable to those in 2009, when the average unemployment rate was 7.3 percent.” Arkansas Department of Workforce Services Communications Director Kimberly Friedman said in a statement.
Greg Kaza, economic researcher and executive director of the Arkansas Policy Foundation, has said the high unemployment rates in the state and nation reflect a “weak jobs recovery.” And while the jobless problem is bad, there were two periods in recent history with “persistently high unemployment” (above 7%) for more than a year. The longest period by far with the state jobless rate above 7% was April 1980 to July 1989. After a brief spell below 7%, the state’s jobless rate moved above 7% between October 1990 to August 1992. It stayed below 7% until March 2009.
The state’s total nonfarm employment gained 3,600 jobs between June and July reaching 1.169 million. The July figure is also above the 1.163 million in July 2009, and trending up from the 1.156 million in January. However, the state’s nonfarm employment is down 38,800 jobs since the peak of 1.208 million in February 2008.
Arkansas’ manufacturing sector continues to recover from a January low of 157,700 jobs. July saw an estimated 166,700 employed in the sector, up slightly compared to the 166,500 jobs in June 2010 and up 3.1% compared to July 2009. The manufacturing sector in Arkansas has lost 74,400 jobs in the past 10 years (July 2000-July 2010), or 30.8% of sector employment.
Metro unemployment rates are set for a Sept. 1 release.
YEAR-OVER-YEAR
• The education and health services sector is one of the few bright spots in Arkansas’ economy, with July employment reaching an estimated 171,300, up 4.77% compared to July 2009. Driven largely by gains in nursing and other medical employment, the sector has added 43,900 jobs in the past 10 years (July 2000-July 2010).
• Construction jobs increased to 52,700 in June from 52,000 in June. Jobs in the sector fell below 50,000 in February for the first time since December 1998.
• The number of government jobs in July fell to an estimated 219,900 from the 223,400 in June. The level is 1.2% higher than July 2010.
• Trade, transportation and utilities, the largest sector in the Arkansas economy, continues to recover from an overall decline that began in January 2008. Jobs in this sector totaled 230,600 in July, up 0.39% from June 2010, but down 1.7% compared to July 2009. The sector has lost 19,600 jobs since January 2008.
• Arkansas’ tourism and hospitality sector saw some sign of life in July, with employment rising from 97,300 in June to 97,600 in July. Employment in the sector is down 2.98% since July 2009. The sector reached an all-time employment high of 101,800 in August 2008, but has seen its numbers steadily fall since.