State revels in jobs news, but report reminds that many sectors still ailing

Arkansas received promising news of economic recovery last week with announcements that employment is picking up and jobless claims are going down.

Indeed, reports demonstrated that statewide employment in December improved by 2 percentage points and was the second-best in the nation combined with other announcements that unemployment claims for the week of Jan. 18 were third-best nationwide.

State officials reported that Arkansas’ labor force increased 38,904, with 65,543 more Arkansans employed in December than in November. That is an indication that more businesses are hiring and more folks are seeking those opportunities.

The road ahead, however, remains challenging, and a report earlier this month from Metroplan is a reminder that many sectors are still pushing the rock uphill to attempt to overcome 2020.

In its “2020 Metrotrends Demographic Review and Outlook” report, the agency noted that employment “nosedived in April, the sharpest short-term job loss of modern history,” leading to a statewide unemployment rate of 10.8%, the highest in 35 years as all 11 economic sectors dropped jobs.

“When bottom-out occurred, the Little Rock region had lost over 30,000 jobs,” the report said.

Though job recovery built momentum throughout the year, there still are 33,900 fewer

Arkansans working today than were employed a year ago.

The Central Arkansas planning agency noted that the region’s service-dependent economy is still at risk as the pandemic lingers. Covid-19, the report says, has produced an uneven economic impact on the six-county region.

“Many large retailers as well as small businesses are struggling, with a sharp increase in bankruptcy filings and closures,” it said. “Other companies, including fintech firms and online retailers, are thriving.”

In 2020, the pandemic “resembled a house of cards falling down, as structures and systems that had seemed secure collapsed suddenly,” the report declares in its opening.

Uncertainty reigns moving into 2021 as the coronavirus continues to cause problems. “It is possible that the worst economic damage is already over, but with cases spiking across the country (and in Arkansas) further economic disruptions may lie ahead,” the report said. Metroplan’s findings for 2020 include:

■ Total retail sales remained solid, though selected segments like restaurants and hotels saw major job losses.

■ Local housing construction saw a downturn in FebruaryJune but was back to normal by July.

■ Local manufacturing, construction and freight transportation sectors have seen little disruption.

Other topics include:

■ A look at Trio’s Restaurant and Loca Luna, and how the owners successfully managed pandemic challenges.

■ Professionals at the University of Arkansas for Medical Sciences and the Arkansas Department of Health provide insights about the pandemic.

The report predicts that Central Arkansas will operate as a “90% economy,” meaning many economic sectors will remain depressed while others gain more secure footing in adapting to the pandemic. Social distancing likely is to remain in place this year, even as vaccination penetrations increase, and will hamper economic growth.

Overall, the report provides an interesting glimpse of economic effects of the covid-19 pandemic and its impact on the national and regional economy. It’s available at metroplan.org.

BANK EXPANSION

First Community Bank of Conway is moving ahead with plans to invest $5.6 million and expand at 766 Harkrider St. in Conway. The Batesville-based bank has purchased the property and is awaiting final approval to work out of a temporary building that will offer drive-thru and ATM services until a permanent structure is in place.

The property, in the downtown district at Harkrider and Polk streets, will become the center of First Community’s operations in Conway.

“After a year of steady growth in the Conway market, we want to further establish our roots in an area that has proved ready to embrace our spirit of community banking,” said Dale Cole, chairman and chief executive officer of First Community.

The bank now operates at 1089 Front St. and offers traditional banking services as well as insurance, home mortgage, brokerage and trust services. That location will remain open.

First Community, with assets of $1.8 billion, has 27 branches in Arkansas and Missouri.

INNOVATION SESSION

Developing innovative strategies is key for businesses to grow and continue sharpening their competitive advantage.

The Walton College Executive Education program in Little Rock is offering business owners an opportunity to learn more about strategies that can help them stay ahead of their competitors.

The program will hold an online session, Innovate to Stay Competitive, at 8:30 a.m. Thursday led by Wayne Miller, executive director of the Little Rock Venture Center.

The course will provide the strategies business owners need to keep progressing, especially in the turbulent pandemic environment. Miller will share proven methods to create innovation strategies for organizations of all sizes, from community

AGRICULTURAL AID

Agricultural producers and private landowners in Arkansas can apply through Feb. 12 for federal aid to advance conservation efforts.

The Conservation Reserve Program administered through the U.S. Department of Agriculture provides funding to help farmers and ranchers establish long-term programs that support land conservation.

“This program encourages conservation on sensitive lands or low-yielding acres, which provides tremendous benefits for stewardship of our natural resources and wildlife,” said David Curtis, state director of USDA’s Farm Service Agency in Arkansas.

Federal funds help landowners invest in resource conserving plant species such as approved grasses or trees to control soil erosion, improve water quality and enhance wildlife habitat on cropland.

To apply for the program or learn more go to fsa.usda.gov.

ACCOUNTING MERGER

Five Arkansas accounting firms announced that they have joined forces to form Garland & Greenwood CPAs and Advisors, which will be based in Little Rock.

The merged company will be led by Jake Froemsdorf and Rocky Goodman as managing partners. Garland & Greenwood will provide financial and accounting services to individuals and businesses, including tax preparation and consulting, assurance, CFO/Controller services and payroll support.

“Our firms are merging to be able to offer our clients a greater variety of services with locations throughout the state,” Goodman said in a statement. “We have several services that overlap, but each of us have various specialties that can benefit one another’s clients.”

The merger includes FDV|CPA and Consulting Services of Bentonville; Gasaway & Company CPAs of Little Rock; Keen Goodman of Little Rock; Prince & Tuohey of Hot Springs; and Robert G. Schichtl II CPA of Conway.

The new company name is derived from the locations where the group began discussing a merger: Garland County in Arkansas and Greenwood, Miss. Column ideas or recommendations? Thoughts or musings that need pursuing? Contact me at amoreau@adgnewsroom.com or at (501) 378-3567.