Arkansas’ jobless rate falls to 7.1%

Let’s hope this is the start of a trend.

Arkansas’ unemployment rate in August fell to 7.1%, down from 7.4% in July, marking the first monthly decline since January 2008.

Unfortunately, the August rate is significantly higher than the 5.1% in August 2008. The U.S. jobless rate in August was 9.7%, up from 9.4% in July and a big increase from the 6.2% in August 2008.

“The decrease in Arkansas’ unemployment rate is encouraging news; however, it is too soon to tell if this decrease signals the beginning of a recovery in the job market,” Department of Workforce Services Communications Director Kimberly Friedman said in a statement. “Jobs in six industries did increase over the month, with the largest industry gain due to back-to-school hiring.”

ANNUAL EMPLOYMENT CHANGES (Aug. 2009 – Aug. 2008)
• The number of unemployed in Arkansas was 96,457 in August 2009, up 37.6% over the 70,082 unemployed in August 2008.

• Since August 2008, Arkansas manufacturing employment has fallen 11.3% to 161,700 in August 2009. The Arkansas DWS estimates that more than 85% of the loss occurred in durable goods, which is the primary component of manufacturing in the Fort Smith region.

• Employment in the government sector was 220,300 in August, up over the 214,600 in August 2008.

• The education and health services sector posted 170,400 jobs in August, up 7.5% over the 158,400 in August 2008. Health care and social assistance posted most of the gain, according to DWS.

• Trade, transportation and utilities jobs numbered 234,800 in August, down more than 5% from August 2008.

August job data for the Fort Smith metro area will be available Sept. 30. July marked an end to nine consecutive months of manufacturing employment decline in the Fort Smith metro area, with the area unemployment rate dropping from 7.8% in June to 7.7% in July.