Editor’s note: This story is a component of The Compass Report. The quarterly Compass Report is managed by The City Wire and is sponsored in the Fort Smith area by Arvest. Supporting sponsors of The Compass Report are Cox Communications and the Fort Smith Regional Chamber of Commerce.
The estimated number of employed in Arkansas outpaced the size of the workforce, which held the state’s jobless rate at 5.7% in June. Federal figures released Tuesday morning show more than 45,000 Arkansans were employed in June compared to June 2014.
The state’s jobless rate of 5.7% in June was down compared to a revised 5.8% in May (revised up from 5.7%) and better than the 6.1% in June 2014. According to the figures released Friday (July 21) by the U.S. Bureau of Labor Statistics, the state’s economy added an estimated 45,399 jobs between June 2014 and June 2015.
The size of the workforce – 1.336 million – was up 3.36% compared to June 2014, and was flat compared to May. The peak for Arkansas’ labor force was 1.376 million in August 2008.
The number of employed in Arkansas during June was 1.261 million, up 1,473 jobs over May and up 3.72% compared to June 2014. The number of unemployed was an estimated 75,669 during June, below the 76,945 in May, and below the 78,743 in June 2014.
Leading the year-over-year job gains were the education and health services sector (+5,400 jobs), leisure and hospitality (+5,100) and construction (+4,400).
The closely watched nonfarm payroll number was 1,211,400 in June, better than the 1,209,600 in May and up over the 1,188,100 in June 2014. If the June number stands, it will mark a new high. Prior to June, nonfarm jobs reached a high in Arkansas of 1,209,800 in February 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 June was an estimated 248,500, above the 247,800 in May and ahead of the 244,400 during June 2014. Employment in the sector hit a high of 251,800 in March 2007.
Manufacturing jobs in Arkansas during June totaled 154,500, above the 154,200 in May and above the 153,900 in June 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 June was 213,500, up from 213,400 in May and down from the 213,600 during June 2014.
The state’s Education and Health Services sector during June had 177,300 jobs, unchanged from May and up from 171,900 during June 2014. Employment in the sector is up 21.9% compared to June 2005. May and June levels marked a new record for employment in the sector.
The construction sector employed an estimated 49,700 in June, up from 48,000 in May and above the 45,300 in June 2014. The sector is off the employment high of 57,600 reached in March 2007.
Arkansas’ tourism sector (leisure & hospitality) employed 112,600 during June, down from 113,800 during May, and above the 107,500 during June 2014. The sector hit a record high in February with employment of 114,800.
NATIONAL, REGIONAL DATA
The BLS report also noted that 42 states had unemployment rate decreases from a year earlier, five states had increases and three states were unchanged. The national jobless rate during June was 5.3%, down from 6.1% in June 2014.
West Virginia had the highest unemployment rate among the states in June at 7.4%. Nebraska had the lowest jobless rate at 2.6%.
The June jobless rate in Oklahoma was 4.5%, up from 4.3% in May and unchanged from June 2014.
Missouri’s jobless rate during June was 5.8%, unchanged from May and down from 6% in June 2014.