Northwest Arkansas is seeing its strongest job market since the 1990s, according to the U.S. Bureau of Labor Statistics.
The labor force was 262,828 in February, up 17,236 people since February 2015. Unemployment dropped from 4.4 to 3.3 percent during that time.
How Northwest Arkansas Compares
Northwest Arkansas’ February unemployment rate tied it for 18th nationally for lowest unemployment rate, according to the U.S. Bureau of Labor Statistics. Other areas with a 3.3 percent unemployment rate include:
• Portland, Maine
• Lubbock, Texas
• Grand Forks, N.D.
• College Station, Texas
Source: U.S. Bureau of Labor Statistics
Northwest Arkansas' metropolitan statistical area includes Benton, Washington and Madison counties and McDonald County, Mo. The labor force includes both people working and those looking for jobs.
Kathy Deck, director of the center for Business and Economic Research at the University of Arkansas, said the numbers indicate people are moving to the region for opportunities and are successful finding jobs.
"The labor force is as large as it has ever been, and it is growing as fast as it has ever grown," Deck said.
The area's 7 percent labor force growth from February to February is more than three times the national rate of 1.3 percent, Deck said. Northwest Arkansas' labor force grew 5.1 percent from 2014 to 2015.
"I would have said, 'We can't hope for more than 5.1 percent' last year," Deck said. "These numbers are very, very high."
The main reason the labor force is growing is because of the steady flow of people into the area, she said.
Recent estimates from the U.S. Census Bureau show the area's population grew by more than 10 percent, from 465,802 in 2010 to 513,559 in 2015, adding about 31 people a day.
It's unlikely Northwest Arkansas can sustain a 7 percent increase in the labor force for long, Deck said, but it's likely the economy still will continue to be successful.
"We shouldn't be upset if next month it is only 5 percent," she said.
The area's 3.3 percent unemployment rate is about as low as you want to see, she added.
"When it gets pushed too far below that, it is not a sustainable place," Deck said. "It puts pressure on our businesses, and it dampers their success because they can't find the workers."
Continually growing the labor force to meet job growth in Northwest Arkansas is an obstacle leaders in the region have focused on for many years, said Michael Harvey, Northwest Arkansas Council chief operating office.
"The economy is moving faster than we are able to recruit and relocate talent," Harvey said.
The biggest challenge is getting people to realize what Northwest Arkansas has to offer, Harvey said.
"Once they are here, they are hooked," Harvey said.
The council is developing a recruiting tool kit that will help employers market the region to potential employees, Harvey said.
Cameron Smith, president and founder of executive search firm Cameron Smith & Associates, said it is getting easier to attract people to the region. His company has recruited talent to the area for about 20 years.
"We use to just recruit them by talking about the job," Smith said. "When we recruit people here now, we tell them, 'We have an opportunity for you, and the best part is where it is'."
NW News on 04/07/2016