Fort Smith area jobless rate jumps to 8.6%

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by The City Wire staff ([email protected]) February 2, 2011 11:07 am 54 views 

A big increase in the number of unemployed in the Fort Smith metro area pushed the December metro jobless rate to a preliminary 8.6%.

Of Arkansas’ eight metro areas, Only Memphis-West Memphis saw a jobless rate (9.4%) decline in December. The Texarkana (Arkansas-Texas) metro area jobless rate was unchanged at 7.1%, according to figures released Wednesday (Feb. 2) by the U.S. Bureau of Labor Statistics.

Dr. Michael Pakko, chief economist and state economic forecaster at the Institute for Economic Advancement at the University of Arkansas at Little Rock, said the December numbers aren’t as bad as they appear when “seasonal variations” are factored in. However, he does admit that job growth has been sluggish, and he noted that the Fort Smith area “has been one of the slower metro areas” in terms of job recovery following the recession.

“We’re seeing very little progress in having unemployment rates come down since the end of the recession. And that’s kind of been the story for the past 18 months,” Pakko said.

Retail sales and personal income have shown “really substantial recovery,” said Pakko, who added that he doesn’t believe the jobless rates will pull the economy back into a recession.

FORT SMITH METRO PICTURE
The Fort Smith metro area jobless rate reached 8.6%% in December, up considerably from the 7.9% in November and also higher than the 8.2% in December 2010. The Fort Smith metro jobless rate hit 8.1% in February 2009. Prior to that, it was February 1993 the last time the jobless rate was at or above 8% in the Fort Smith area.

The estimated number of unemployed in the Fort Smith metro area was 11,387 in December, up 9.16% compared to November 2010 and up 4% compared to December 2009. January 2009 marked the beginning of a high number of unemployed in the Fort Smith metro area that peaked with 11,937 in January 2010.

Also, the number of employed in the metro area during December was 120,873, down 1.94% compared to the 123,265 employed in the area during December 2009.

Total metro nonfarm payroll in December was 115,500, down from the revised 115,900 in November, and down 0.6% compared to December 2009.

Fort Smith’s manufacturing sector employed an estimated 21,000 in December, down from 21,200 November, and down from the 21,600 employed in the sector in December 2009. Employment in the sector is down 31.5% from a decade ago when January 2001 manufacturing employment in the metro area stood at 30,700.

Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 23,600 in December, up from a revised 23,500 in November. The sector employed 23,700 in December 2009.

NATIONAL, STATE NUMBERS
Unemployment rates were lower in December than a year earlier in 238 of the 372 metropolitan areas, higher in 115 areas, and unchanged in 19 areas, noted the BLS report. Also, 14 areas recorded jobless rates of at least 15%, while 14 areas registered rates of less than 5%.

The lowest metro rate in the state was Northwest Arkansas at 6.2%. The highest metro rate was 9.8% in Pine Bluff.

Unemployment rates were higher in November than a year earlier in 182 of the 372 
metropolitan areas, lower in 166 areas, and unchanged in 24 areas, noted the BLS report. Also, 13 metro areas had jobless rates of at least 15%, while 11 areas registered rates of less than 5%.

The U.S. unemployment rate in December was 9.4%, down from 9.8% in November and down from 9.9% in December 2009. Arkansas’ December unemployment rate was 7.9%, unchanged from 7.9% in December and up from 7.6% in December 2009. The Oklahoma rate during December was 6.8%, down from 6.9% in November and unchanged from 6.8% in December 2009.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
Dec. 2010: 6.2%
Dec. 2009: 5.9%
Nov. 2010: 5.8%

Fort Smith
Dec. 2010: 8.6%
Dec. 2009: 8.2%
Nov. 2010: 7.9%

Hot Springs
Dec. 2010: 8%
Dec. 2009: 7.6%
Nov. 2010: 7.5%

Jonesboro
Dec. 2010: 7.4%
Dec. 2009: 7.1%
Nov. 2010: 6.9%

Little Rock-North Little Rock-Conway
Dec. 2010: 6.9%
Dec. 2009: 6.5%
Nov. 2010: 6.6%

Memphis-West Memphis
Dec. 2010: 9.4%
Dec. 2009: 10.4%
Nov. 2010: 9.7%

Pine Bluff
Dec. 2010: 9.8%
Dec. 2009: 9.5%
Nov. 2010: 9.2%

Texarkana
Dec. 2010: 7.1%
Dec. 2009: 6.7%
Nov. 2010: 7.1%

FORT SMITH METRO AREA HISTORY
Past annual average unemployment rates
2009: 7.9%
2008: 4.8%
2007: 5.3%
2006: 4.9%
2005: 4.5%
2004: 5.2%
2003: 5.5%
2002: 5%
2001: 4.2%
2000: 3.7%