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.
An estimated year-over-year gain of 8,700 jobs in Arkansas’ tourism sector and 7,200 jobs gained in the trade, transportation and utilities sector pushed the state’s February jobless rate down to 5.5% – a rate not seen since August 2008.
The jobless rate for Arkansas during February fell to 5.5% compared to 6.5% in February 2014, and down from 5.6% in January, according to figures released Friday (March 27) by the U.S. Bureau of Labor Statistics. The February numbers are subject to revision.
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.
The size of the Arkansas workforce – 1.326 million – was up over the 1.293 million in February 2014. The peak for Arkansas’ labor force was a revised 1.376 million in August 2008.
The number of employed in Arkansas during February was 1.252 million, above January employment of 1.206 million, and up an estimated 42,894 jobs compared to February 2014. The number of unemployed was an estimated 73,515 during February, below the 74,373 in January, and well below the 83,824 in February 2014.
The closely watched nonfarm payroll number was 1.211 million in February, the third consecutive time the category topped 1.2 million since September 2008. The February number was up over the 1.181 million in February 2014. Nonfarm jobs reached a high in Arkansas of 1,209,800 in February 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.
According to the BLS, 46 states had rate decreases from a year ago, and four states – Louisiana, North Dakota, South Carolina and Tennessee – had increases. However, the North Dakota increase was from 2.7% in February 2014 to 2.9% in February 2015.
ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during February was an estimated 249,900, up from 249,300 in January and up over the 242,700 in February 2014. Employment in the sector hit a high of 251,800 in March 2007.
Manufacturing jobs in Arkansas during February totaled 153,700, unchanged compared to January and above the 155,500 in February 2014. Employment in the manufacturing sector fell in 2014 to levels not seen since early 1968, and is down 24% compared to February 2005. Peak employment in the sector was 247,300 in February 1995.
Government sector employment during February was 213,300, up from 213,100 in January and just slightly above the 213,200 in February 2014.
The state’s Education and Health Services sector during February had 174,200 jobs, up from 173,900 during January and up from 171,600 during February 2014. Employment in the sector is up almost 20% compared to February 2005.
The construction sector employed an estimated 49,500 in February, up from 49,000 in January and above the 45,400 in February 2014. Employment in this sector was recently revised, which dropped estimates below the 50,000 mark. The sector is off the employment high of 57,600 reached in March 2007.
Arkansas’ tourism sector (leisure & hospitality) employed 115,200 during February, up from 112,100 during January, and well above the 106,500 during February 2014. The February number, if it stands, marks a new record for employment in the sector.