Area’s Jobless Rate Drops

Unemployment Now 4.6 Percent

Wednesday, January 9, 2013

The local unemployment rate dropped to 4.6 percent in November.

Northwest Arkansas is following a national trend of lower unemployment, according to the U.S. Bureau of Labor Statistics. The agency reported 322 of the 372 Metropolitan Statistical Areas posted lower year-over-year rates and 52 areas had rates less than 5 percent.

Northwest Arkansas’ Metropolitan Statistical Area encompasses Washington, Benton and Madison counties in Arkansas and McDonald County, Mo.

By The Numbers

Regional Unemployment

Arkansas posted a 6.5 percent unemployment rate in November 2012. Below are the November 2012 and 2011 rates for Arkansas’ six Metropolitan Statistical Areas.

MSA - 2012 - 2011

Fayetteville - 4.6 percent - 5.4 percent

Fort Smith - 7.6 percent - 8.1 percent

Hot Springs - 6.8 percent - 7.5 percent

Jonesboro - 6.2 percent - 6.5 percent

Little Rock - 5.8 percent - 6.3 percent

Pine Bluff - 8.3 percent - 9.3 percent

Source: Bureau of Labor Statistics

Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas, said November is the first month to fall to 4.6 percent since 2008.

“We see Northwest Arkansas continue to outperform other areas of the state and the nation itself,” she said.

The Arkansas unemployment rate was 6.5 percent in November, and Little Rock posted the second-lowest number at 5.8 percent.

National unemployment sat at 7.7 percent for the month.

Deck anticipates December’s employment numbers to mirror the November report.

The Bureau of Labor Statistics is slated to release local December unemployment data Jan. 30.

Deck said Northwest Arkansas’ overall economy is improving as the labor market grows and unemployment shrinks.

“This is the way we want it to happen,” she said.

All employment areas grew from November 2011 to November 2012 except for the information sector, which remained even year-over-year.

The areas experiencing the highest growth percentages were leisure and hospitality and retail trade, which grew at rates of 7.4 and 7 percent, respectively.

Deck said it isn’t unusual to see growth in those areas around the holidays as stores and restaurants add employees to meet higher demand.

“This year there was as much time between Thanksgiving and Christmas as there can be, extending the season,” she said.

The area’s labor force hit 214,500 in November, up from 205,300 in November 2011.

Kimberly Friedman, spokeswoman with the Department of Workforce Services, said the civilian labor force includes people who are employed and those looking for work.

“Just because someone is counted as unemployed does not mean they are collecting unemployment benefits,” she said.

She said the extension of the federal Emergency Unemployment Compensation program will continue helping the longtime unemployed population.

President Barack Obama signed the American Taxpayer Relief Act of 2012 on Jan. 2 which extends the Emergency Unemployment Compensation program through Jan. 1, 2014. The program offers three tiers of assistance that can add 37 weeks of benefits.

“We want people back in the work force as quickly as possible, but with the tight job market is it not always easy,” she said.