State joblessness at 5%
Posted on Saturday, July 19, 2008
Arkansas’ unemployment rate fell in June one-tenth of a percentage point to 5 percent from May, the U. S. Bureau of Labor Statistics said Friday.
And on an annual basis, the labor force and the number of employed Arkansans is up.
Compared with June 2007, there were 13, 200 more Arkansans employed, said Kimberly Friedman, communications director for the Arkansas Department of Workforce Services. And there were 8, 400 more workers in the labor force.
“This year-to-year comparison provides a better measure of economic trend,” Friedman said in a prepared statement. “Although the job pace is slowing, movement is in a positive direction.”
It’s good news anytime employment is rising at all, as it has in Arkansas in the past 12 months, said Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas in Fayetteville.
“In an economy like we’re facing now, where there are substantial pressures in the other direction, [employment growth ] could indicate that we’re weathering it very well,” Deck said. “Five percent unemployment is healthy.”
The U. S. unemployment rate was 5. 5 percent in June, the same as in May.
The state’s civilian labor force dropped 9, 500 from May to 1, 374, 400. There were 7, 400 fewer Arkansans employed in June compared with May and 2, 100 fewer residents who were unemployed. Altogether, the declines in each category caused the unemployment rate to fall to 5 percent.
But the drop in the labor force is not significant, Deck said.
The biggest contributor to the drop in the labor force and the total of employed Arkansans is the number of teachers who are off and are not trying to be hired for the summer, Deck said.
“When you think about teachers and education employees in general, in the summer many of them are neither technically employed nor looking for a job,” Deck said. “So that doesn’t really cause me any great consternation.”
Arkansas is doing better than two of its neighboring states. Mississippi had an unemployment rate of 6. 9 percent in June, and Tennessee’s joblessness rate was 6. 5 percent. Louisiana had the best rate in the area at 3. 8 percent, followed by Oklahoma at 3. 9 percent, Texas at 4. 4 percent and Missouri at 5 percent.
Nationally, Michigan continues to have the highest joblessness rate in the country at 8. 5 percent. South Dakota had the lowest unemployment rate at 2. 8 percent. There were 22 states with unemployment rates lower than Arkansas’ rate of 5 percent.
In Arkansas, there were seven employment sectors that recorded increases in jobs in June compared with May, three that had declines and one that was unchanged.
The leisure and hospitality sector had the biggest increase, adding 1, 600 jobs. The arts, entertainment and recreation category accounted for more than half of those, growing by 900 jobs.
The professional and business services sector added 1, 000 jobs. Administrative and support services accounted for 600 of the new jobs.
Construction grew by 700 jobs, with almost all of the gain coming among specialty trade contractors.
The trade, transportation and utilities sector also posted a gain of 700 jobs, with most of the gain coming in retail trade.
Financial services had 400 more jobs in June than in May.
There were 200 more jobs in manufacturing than in May.
“Other services” added 600 jobs.
Government had the largest monthly decline, losing 6, 000 jobs as educational facilities reduced staff for the summer. Within the sector, state government fell by 4, 800 jobs and local government dropped 1, 400 jobs.
The educational and health services sector declined by 1, 000 jobs.
Information lost 100 jobs.
The number of jobs in the natural resources and mining sector was unchanged in June.
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