Arkansas jobless rate up to 8.1%

Arkansas’ jobless rate jumped to an estimated 8.1% in June, a level not seen since June 1987. Also, Arkansas was just one of eight states to post an unemployment rate increase in June compared to June 2010.

Pushing the rate higher was an increase of 2,543 in the number of unemployed (109,346) during June compared to May. The June unemployment number is also 4.06% higher than June 2010, according to a federal Bureau of Labor Statistics report released Friday (July 22).

June marks the 28th consecutive month the Arkansas jobless rate has been above 7%.

The number of employed in Arkansas during June fell 11,029 jobs to an estimated 1.246 million, down 0.87% compared to May 2011. However, the number of jobs in June were up 0.13%, compared to June 2010.

The June numbers are estimates and subject to revision.

According to Michael Pakko, chief economist and state economic forecaster with the Institute for Economic Advancement at the University of Arkansas at Little Rock, Arkansas’ unemployment rate “is now higher than it has been at any time during the recession and recovery.” And at 109,346, the number of unemployed in Arkansas is now at a new all-time high, Pakko added.

Despite the bad numbers, some Arkansas sectors posted gains in June. Education and Health Services jobs rose from 166,300 in May to 168,200 in June, Leisure & Hospitality jobs rose from 103,500 in May to 104,400 in June and construction jobs rose from 46,300 in May to 47,000 in June.

The Oklahoma jobless rate was 5.3% in June, unchanged from May, and down from the 7% in June 2010. The U.S. rate during June was 9.2%, up from 9.1% in May and down from 9.5% in June 2010.

The June numbers look bad, but economic research Greg Kaza pointed out that Arkansas payroll employment has increased by 15,500 jobs since the formal end of the U.S. recession two years ago in June 2009. Kaza, executive director of the Arkansas Policy Foundation, provided job growth data on the following sectors between June 2009 and June 2011.
• Professional & Business Services — +11,200
• Education & Health Services — +5,900
• Leisure & Hospitality — +4,300
• Trade, Transportation & Utilities — +1,800
• Mining & Logging — +600
• Government — +300

SECTOR NOTES
• Employment in Arkansas’ manufacturing sector fell to an estimated 157,700 jobs in June from 158,900 in May. The job level is below the 161,900 in June 2010. The manufacturing sector in Arkansas has lost 69,600 jobs in the past 10 years (June 2001-June 2011), or 30.62% of sector employment.

• Construction and construction-related jobs increased to 47,000 in June compared to the revised 46,300 in May. The June estimate is below the 50,300 in June 2010. The job count is 10,500 below the peak of 57,500 first reached in February 2006.

• Jobs in the Trade, Transportation and Utilities sector — the state’s largest sector — was estimated at 236,600 in June, down from the revised 237,200 in May and up over the 235,000 in June 2010.

• The Professional & Business services sector employed an estimated 122,900 in June, up from the 121,900 in May and up over the 118,600 in June 2010.

• The state’s tourism sector — Leisure & Hospitality jobs — increased to 104,400 jobs in June compared to a revised 103,500 in May. The sector employed 99,100 in June 2010.

NATIONAL STATS
According to the BLS report, 8 states recorded unemployment rate increases, 39 states registered rate decreases, and 3 states had no rate change compared to June 2010.

Nevada continued to register the highest unemployment rate among the states, with 12.4% in June, down from 14.9% in April. The states with the next highest rates were California (11.8%) and Rhode Island (10.8%).

North Dakota reported the lowest jobless rate, 3.2%, followed by Nebraska at 4.1% and South Dakota at 4.8%.