LITTLE ROCK — Arkansas’ unemployment rate climbed to 7.7 percent in September, up from 7.5 percent in August, the U.S. Bureau of Labor Statistics said Friday.
But that’s not necessarily the start of an upward trend, said Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas at Fayetteville.
“It’s going to bounce around for a while,” Deck said.
The rate is the highest since May, when it also was 7.7 percent. It dropped to 7.4 percent in July.
Arkansas’ unemployment rate ranks 17th nationally, the same ranking as in August. The national unemployment rate for September is 9.6 percent.
North Dakota had the country’s lowest unemployment rate at 3.7 percent, unchanged from August, followed by South Dakota at 4.4 percent, down 0.1 percent; Nebraska, unchanged at 4.6percent; New Hampshire, 5.5 percent, down 0.2 percent; and Vermont at 5.8 percent, down 0.2 percent.
Nevada’s unemployment rate was the country’s highest at 14.4 percent, unchanged from August, followed by Michigan at 13 percent, down 0.1 percent; California unchanged at 12.4 percent; Florida at 11.9 percent, up 0.2 percent; and Rhode Island at 11.5 percent, down 0.3 percent.
Layoffs in manufacturing and a decline in the number of temporary workers conducting the federal census are two primary reasons for the higher joblessness rate, according to the Arkansas Department of Workforce Services.
There were 1,600 jobs lost in manufacturing from August to September, but there were 3,200 more jobs in the sector last month than in September 2009.
Nevertheless, the net loss of 1,600 jobs in that sector was considered a major drop after manufacturers reported monthly gains of several thousand jobs recently.
“We had drawn inventories down to nothing,” Deck said. “So manufacturers had to start up again to have stuff to sell. But final demand remains weak. I think we’re going to see these kinds of swings with manufacturing coming on and manufacturing going off.”
Michael Pakko, chief economist and state economic forecaster for the Institute for Economic Advancement at the University of Arkansas at Little Rock, said it is discouraging to see Arkansas’ labor force shrinking. There were30,000 fewer Arkansans in the labor force in September than a year ago.
It is difficult to determine what causes the decline, Pakko said. It could be discouraged people who stop looking for a job, people who decide to return to school to improve their skills, people who retire or even people who move out of state, Pakko said.
Arkansas’ labor force is declining while the country’s labor force has remained basically the same, Deck said.
“But I’m not ready to say we’re seeing a big population exodus from the state,” Deck said. “I think that overstates what’s going on here. The labor force is down about 2 percent over last year, and obviously part of that is discouraged workers.”
In the past 12 months, six industry sectors lost jobs and five added jobs.
The educational and health services sector had the biggest gain, adding 4,300 jobs in the past year. More than half of the growth occurred in social assistance, which includes vocational rehabilitation, child day-care services and services for the elderly and disabled.
Manufacturing added 3,200 jobs since September last year.
Construction jobs grew by 2,200, partly because of expansion in specialty trade contractors.
Financial activities had 200 more jobs than in September 2009.
Other services, which includes repair and maintenance, added 1,800 jobs.
The trade, transportation and utilities sector had the biggest loss of jobs at 3,300. Retail trade and the transportation-warehousing-utilities category lost jobs in part because of the recent recession.
The leisure and hospitality sector lost 2,700 jobs in the past year, almost all in the accommodations and food services category.
Government employment fell by 2,100 jobs, with the biggest losses coming in state government.
The professional and business services sector had 1,800 fewer jobs than in September last year, with most of the losses in the professional, scientific and technical category.
The information sector was down 1,000 jobs, and the mining and logging sector dropped 400 jobs in the past 12 months.
Business, Pages 33 on 10/23/2010