Manufacturing losses push Arkansas’ unemployment rate upward

Arkansas’ November unemployment rate rose three-tenths of a percent from 5.4 percent in October to 5.7 percent in November, according to Arkansas’ Department of Workforce Services.

The United States’ jobless rate, at 6.7 percent, rose two-tenths of a percentage point.

Arkansas’ civilian labor force declined 6,100 in November, a result of 4,000 more unemployed and 10,100 fewer employed Arkansans.

“The increase in Arkansas’ rate continues to reflect the economic impact of recent layoffs and closures,” said DWS Communications Director Kimberly Friedman. “While Arkansas’ unemployment rate rose this month, our rate is still a full percentage point below the national rate. Compared to last November, 5,900 more Arkansans are employed.”

Effects of layoffs and job cuts are evident when comparing November 2008 to November 2007. Arkansas’ nonfarm payroll jobs decreased 1,000 since November 2007. Increases in seven industries were offset by declines in four industries.

Employment in manufacturing decreased 5,600. A majority of the loss (3,200 job losses) occurred in durable goods, as facilities continued to close and lay off workers because of market conditions.

Trade, transportation and utilities experienced a decline of 1,700 jobs. Economic conditions caused losses in transportation-warehousing-utilities and retail trade.

Educational and health services advanced 3,700, with 97 percent of the growth in health care and social assistance due to the expansion of the health care industry.

Leisure and hospitality added 1,000 jobs. Food services accounted for the majority of the increase, as new restaurants opened around the state.

There were also some rapid employment declines in key sectors in the 60-day period between October and November 2008. Overall, nonfarm payroll jobs in Arkansas declined 1,300 in November to total 1,210,900.

The leisure and hospitality sector saw 1,200 job cuts. The ADWS cited seasonal trends in both arts-entertainment-recreation and accommodation-food services for the losses.

Construction posted a loss of 1,100 jobs. Weak housing market impacted employment within the sector, according to state officials.

Jobs in manufacturing dropped 1,000, with 90 percent of the loss occurring in durable goods. Layoffs and business closures caused the decline.

Employment in professional and business services fell 1,100.

Trade, transportation and utilities posted a large increase, as more than 1,500 retail trade jobs were added for the holiday sales season.