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’ jobless rate fell to 5.4% in August thanks to a year-over-year gain of more than 43,000 jobs. Also, the number of unemployed declined by 4,825 in August compared to August 2014.
The state’s jobless rate of 5.7% in August was down from the 5.6% in July and better than the 5.9% in August 2014. According to the figures released Friday (Sept. 18) by the U.S. Bureau of Labor Statistics, the state’s economy added an estimated 43,471 jobs between August 2014 and August 2015.
The size of the workforce – 1.338 million – was up 3.02% compared to August 2014, and was up over the 1.336 million in July. The peak for Arkansas’ labor force was 1.376 million in August 2008.
The number of employed in Arkansas during August was 1.266 million, up 3,910 jobs over July and up 3.55% compared to August 2014. The number of unemployed was an estimated 72,139 during August, below the 74,629 in July, and below the 76,964 in August 2014.
Sectors leading the year-over-year gains were Education & Health Services (+7,300), Construction (+6,200) and travel and tourism (+4,800).
The closely watched nonfarm payroll number was 1,214,800 million in August, better than the 1,213,100 million in July and up over the 1,188,000 million in August 2014. If the August number stands, will will mark a new high. August marks the third consecutive month that the nonfarm level set a new record. Prior to June, the record was 1,209,800 in July 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 August was an estimated 248,100, below the 248,200 in July and ahead of the 245,600 during August 2014. Employment in the sector hit a high of 251,800 in March 2007.
Manufacturing jobs in Arkansas during August totaled 152,700, below the 153,400 in July and below the 154,400 in August 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 August was 213,600, down from 213,900 in July and down from the 213,900 during August 2014.
The state’s Education and Health Services sector during August had 179,000 jobs, up from 177,400 in July and up from 171,700 during August 2014. Employment in the sector is up 22.1% compared to August 2005. August also marked a new record for employment in the sector.
The construction sector employed an estimated 51,900 in August, down from 52,300 in July and above the 45,700 in August 2014. The sector is off the employment high of 57,600 reached in March 2007.
Arkansas’ tourism sector (leisure & hospitality) employed 112,600 during August, up from 112,300 during July, and above the 107,800 during August 2014. The sector hit a record high in February with employment of 114,800.