State Economy Remains Sluggish

The Arkansas Department of Workforce Services reported Friday that the state’s unemployment rate rose by one-tenth of a percentage point, from 7.2 in April to 7.3 in May, an indicator that the state economy has yet to recover from the recession.

The fractional rise mirrors the national trend in unemployment, which rose from 7.5 percent to 7.6 percent in May, said DWS Communications Director Kimberly Friedman.

While unemployment increased from April to May, so did employment. The real value in the numbers, however, is what they say about this year as compared to last year, said Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas.

Compared to May 2012, this year’s labor force was smaller by 25,200 people, and 23,200 fewer people were employed. These numbers, Deck said, point to a sputtering state economy.

“We’d like to see recovery, but we’re not,” she said. “The 2012-2013 comparison is not strong.”

According to monthly data from the U.S. Department of Labor, the number of employed Arkansans rose from 1,235,700 in April to 1,236,300 in May.

Employment decreased in six sectors, offsetting gains in five. The sector that experienced the greatest loss was in professional and business services, a seasonal decline of 2,000 jobs that reflects the end of tax season.

On the plus side, retail trade, with 1,200 more jobs, and construction, with 1,400 more, saw seasonal gains, according to data from the labor department.

“When we take it all together, employment is going sideways” as opposed to up or down, Deck said.