Arkansas jobless rate rises to 7.7% in September

Arkansas’ jobless rate during September increased to 7.7% from an August rate of 7.5%, and marks the 19th consecutive month the unemployment rate has been above 7%.

Arkansas’ civilian labor force declined 800 in September, a result of 1,900 more unemployed and 2,700 fewer employed Arkansans, according to the Arkansas Department of Workforce Services.

“The increase in Arkansas’ unemployment rate is related in part to layoffs and contractions in manufacturing. In addition, the state posted a decline in temporary Census workers. These losses, along with decreases in other sectors, were enough to cause an increase in the unemployment rate,” DWS Communications Director Kimberly Friedman said in the statement.

According to the federal Bureau of Labor Statistics, regional and state unemployment rates were little changed in September, with 23 states and the District of Columbia recording unemployment rate decreases, 11 states registering rate increases, and 16 states with no rate change.

Arkansas’ total nonfarm employment lost 4,900 jobs between August and September, settling at 1.155 million. The September figure is 600 jobs below the 1.156 million in September 2009. The state’s nonfarm employment is down 52,500 jobs since the peak of 1.208 million in February 2008.

Employment in Arkansas’ manufacturing sector fell to 163,200 in September, but is above the 160,200 employed in the sector in September 2009. The manufacturing sector in Arkansas has lost 76,000 jobs in the past 10 years (September 2000-September 2010), or 31.7% of sector employment.

The longest period by far with Arkansas’ 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.

Arkansas’ jobless rate hit 7.8% in March, the highest point since May 1988. The U.S. September unemployment rate was 9.6%, unchanged from August and down from the 9.8% in September 2009.

The metro unemployment figures are set for a Nov. 3 release.