State unemployment rate rises slightly; jobs added

Arkansas’ seasonally adjusted unemployment rate rose to 3.6% in October, an increase of one-tenth of a percentage point from the previous month.

Between September and October of this year, the civilian labor force in the state declined by 489 — meaning there were 1,589 fewer employed and 1,100 more unemployed Arkansans, according to the Arkansas Division of Workforce Services.

The number of unemployed Arkansans increased by 8.08% between last month and October of the previous year. The number of people eligible to work in Arkansas increased from a year ago, but was down slightly from September.

“It’s been increasing for about seven months now, just creeping up slightly, but that’s starting to accumulate, coming back from an extremely low level but still being under 4%, the unemployment rate historically continues to be low,” said Michael Pakko, chief economist and state economic forecaster at the Arkansas Economic Development Institute.

The U.S. unemployment rate increased by two-tenths of a percentage point, shifting from 3.5% to 3.7% during the same period, but the unemployment rate nationwide has remained within that range since March, according to U.S. Department of Labor Bureau of Labor Statistics data.

“When it comes down to those small changes of the unemployment rate, typically a point where a tenth of a [percentage point] or two is not really even statistically significant. Certainly on the state level it’s not, so perhaps the most accurate thing to say is the unemployment rate has been hovering between 3.5 and 4% but remains in that range,” Pakko said.

Nonfarm payroll jobs in Arkansas climbed by 7,800 in October, and six major industry sectors posted job gains.

Transportation, utilities and trade industries added 3,900 jobs and hiring happened in all sub-sectors. Warehousing jobs also rose.

Most gains were in local government and education in particular, due to public schools across the state continuing recruiting efforts, according to the news release.

Jobs in other services, such as auto repair, dry cleaning, civic and social organizations, rose by 1,200.

Nonfarm payroll jobs in Arkansas were up by 29,500 in October compared with October of last year.

Compared with a year ago, nine major industry sectors showed growth in October and five of those sectors added 4,000 or more jobs, with the largest gains in manufacturing, which was up 6,300 jobs from the previous year.

Most of this hiring increase was in nondurable goods manufacturing.

Compared with a year ago, jobs in transportation, utilities and trade have risen by 6,000. Wholesale trade, as well as transportation and warehousing, saw expansions that more than offset losses in retail trade, the release stated.

Compared with a year ago, education and health services industries added 4,500 jobs, with the majority of gains in health care and social assistance.

From a year ago, hospitality and leisure industry jobs rose by 4,000, mostly in food service.

There were some notable expansions in professional and business services, information and government jobs, compared with a year ago.

Hiring in construction was down by 1,200 over the year.