State jobless rate up to 7.8%; U.S. GDP revised upward

BusinessFort SmithNews on the Wire

by The City Wire staff ([email protected]) November 23, 2010 10:20 am 76 views 

Despite gains several key Arkansas job sectors, Arkansas’ jobless rate during October increased to 7.8% from a September rate of 7.7%. October marks the 20th consecutive month the unemployment rate has been above 7%.

The state’s civilian labor force was 1.344 million in October, down 2% compared to October 2009, but up over the 1.34 million in September, according to U.S. Bureau of Labor Statistics released Tuesday (Nov. 23).

The number of unemployed rose to 104,833 in October from 102,810 in September. The number of unemployed in October is 1.45% greater than October 2009.

Fortunately, Arkansas’ total nonfarm employment rolls added an estimated 17,400 jobs between September and October, settling at 1.172 million. The October figure also is 15,100 jobs above the 1.157 million in October 2009. The state’s nonfarm employment is down 35,700 jobs since the peak of 1.208 million in February 2008.

Employment in Arkansas’ manufacturing sector grew to 164,900 in October, and is above the 158,800 employed in the sector in October 2009. The manufacturing sector in Arkansas has lost 73,900 jobs in the past 10 years (October 2000-October 2010), or 30.9% of sector employment.

Other job sector notes include:
• Construction and construction-related jobs grew to an estimated 53,500 in October, up over the 52,900 in September and well above the 50,900 in October 2009.

• Jobs in the Trade, Transportation and Utilities sector — the state’s largest sector — fell slightly from 229,600 in September to 229,500 in October. The sector is down 0.69% compared to October 2009.

• The Professional & Business services sector added an estimated 5,900 jobs in October to settle at 114,700. The sector employed 108,800 in September and 113,800 in October 2009. Officials with the Arkansas Department of Workforce Services credited the job gains to “reported gains at employment agencies and in services to buildings.”

• The state’s tourism sector — Leisure & Hospitality jobs — grew to 101,200 jobs in October, up from 96,400 in September, but below the 101,500 in October 2009. Prior to the October report, the sector had been on a steady decline since peaking in August 2008 with 101,800 jobs.

• The government sector saw jobs increase to 214,100 in October, up from 212,200 in September, but below the 216,700 in October 2009. State officials credited most of the October job gains to public school hiring.

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.

The U.S. October unemployment rate was 9.6%, unchanged from September and August and down from the 10.1% in October 2009.

According to the federal Bureau of Labor Statistics, regional and state unemployment rates were little changed in October, with 19 states and the District of Columbia recording unemployment rate decreases, 14 states registering rate increases, and 17 states with no rate change.

Nevada continued to register the highest unemployment rate among the states, 14.2% in October. The states with the next highest rates were Michigan, 12.8%, and California, 12.4%. North Dakota reported the lowest jobless rate, 3.8%, followed by South Dakota and Nebraska, at 4.5% and 4.7%, respectively.

GDP REVISION
Also announced Tuesday was that the U.S. GDP for the third quarter increased at annual rate of 2.5% compared to the second quarter. The revised number is up from the first estimate of 2%, according to the U.S. Bureau of Economic Analysis. The second quarter GDP was up 1.7% compared to the first quarter.

The BEA noted in the report: “The increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, nonresidential fixed investment,exports, and federal government spending that were partly offset by a negative contribution from residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.”