Editor’s note: This story is a component of The Compass Report. The quarterly Compass Report is managed by The City Wire, and sponsored by Arvest Bank. Supporting sponsors of The Compass Report are Cox Communications and the Fort Smith Regional Chamber of Commerce.
Arkansas was one of 11 states to see a jobless rate rise in April compared to March. However, the rate rise was a function of a bigger gain in the state’s workforce compared to the gain in the number of jobs added between March and April.
The state’s jobless rate rose to 5.7% in April, up from 5.6% in March and better than the 6.3% in April 2014. According to the figures released Wednesday (May 27) by the U.S. Bureau of Labor Statistics, the state’s economy added an estimated 46,719 jobs between April 2014 and April 2015.
The size of the workforce – 1.334 million – was up 3.23% compared to April 2014, and was up 0.3% over the 1.33 million in March. The peak for Arkansas’ labor force was 1.376 million in August 2008.
The number of employed in Arkansas during April was 1.258 million, up 0.2% over March employment of 1.256 million, and up 3.85% compared to April 2014. The number of unemployed was an estimated 76,058 during April, above the 74,579 in March, but below the 80,942 in April 2014.
The closely watched nonfarm payroll number was 1.208 million in April, better than the 1.202 million in March and up over the 1.184 million in April 2014. Nonfarm jobs reached a high in Arkansas of 1,209,800 in March 2008.
The nonfarm number topped the 1.2 million mark in December, the first time since September 2008. The nonfarm category does not include farm workers, private household employees, non-profit employees and “general government” employees. Investopedia estimates that the nonfarm category represents about 80% of the total workforce that contributes to national GDP.
Arkansas’ average jobless rate for 2014 was 6.1%, down 1.3% percentage points from the 7.4% average in 2013. It is the first time the annual average dropped below 7% since 2008.
ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during April was an estimated 248,100, above the 246,700 in March and ahead of the 243,700 during April 2014. Employment in the sector hit a high of 251,800 in March 2007.
Manufacturing jobs in Arkansas during April totaled 154,600, above the 154,000 in March and above the 153,500 in April 2014. Employment in the manufacturing sector fell in 2014 to levels not seen since early 1968. Peak employment in the sector was 247,300 in February 1995.
Government job employment during April was 213,500, up from 213,300 in March and above the 213,300 during April 2014.
The state’s Education and Health Services sector during April had 176,300 jobs, up from 174,600 in March and up from 171,800 during April 2014. Employment in the sector is up 21.5% compared to April 2005.
The construction sector employed an estimated 48,600 in April, up from 46,200 in March and above the 45,300 in April 2014. The sector is off the employment high of 57,600 reached in March 2007.
Arkansas’ tourism sector (leisure & hospitality) employed 113,300 during April, down from 114,200 during March, and above the 107,100 during April 2014. The sector hit a record high in February with estimated employment of 114,800.
NATIONAL, REGIONAL DATA
The BLS report also noted that 45 states had unemployment rate decreases from a year earlier, and five states had increases. The national jobless rate during April was 5.4%, down from the 6.2% in April 2014.
Nevada had the highest unemployment rate among the states in April at 7.1%. Nebraska had the lowest jobless rate at 2.5%.
The April jobless rate in Oklahoma was 4.1%, up from 3.9% in March and down from 4.7% in April 2014.
Missouri’s jobless rate during April was 5.7%, up compared to 5.6% in March and down from 6.3% in April 2014.