Central Arkansas economy sees job growth surpass pre-pandemic levels

Job growth in Central Arkansas has carried the regional economy over the past year and employment is higher than pre-pandemic levels.

A year-end regional review, Metrotrends Economic Review and Outlook, notes the area had nearly 389,000 jobs in October compared with the previous high of about 366,000 in February 2020.

“The Little Rock regional economy has stabilized in the aftermath of covid-19, in line with national trends. Job growth has surpassed its pre-covid peak with room to spare,” the biannual report said.

Metrotrends highlights job growth across several sectors — led by leisure and hospitality, health and education — and the improvements are reversing an economic downtrend that plagued the region from 2010-2019. Job growth is lifting income levels, which also dropped over that same time period.

“Over the past four years, this trend has reversed,” the report noted. “While local per capita income levels remain a bit below the U.S. metro average, growth has run a bit faster than average in the 2019 to 2022 interval.”

One key factor sparking the growth — more young people choosing work rather than attending college. College enrollment in the 18-24 age group is down across the United States and the decline has been steeper in Central Arkansas.

Employment in the six-county region dipped to record lows of 2.3% in April and May before rising to 2.7% in October — still well below the national average of 3%.

Job gains have emerged even with the continued spike in interest rates throughout 2023. “Rising interest rates normally push unemployment upward, but the most recent cycle of interest rate hikes have barely nudged rates for either the U.S. or local economies,” Metrotrends reported.

The regional labor force, however, remains low and below overall statewide levels, which have caused indigestion for local economic development officials for several years. The Little Rock region — with a population of about 765,000 — has about 364,500 in its labor force, or 47.6% of the population. The statewide labor force consistently runs around 57%.

Sectors that overall dropped jobs last year included finance, plagued by businesses downsizing partly due to higher interest rates, fewer construction starts and a general slowdown in loan growth. Nevertheless, the finance sector has seen above-average job growth since 2019.

One other national trend that’s shrinking the workforce nationally — Baby Boomer retirements — will be felt locally as well. “There is a lot

of concern about the Baby Boom retiring, leaving a gap in the workforce,” the report added. “The concern is legitimate, if a bit overplayed.”

Monitoring and improving the labor force will be a key economic factor in coming years. Retaining employees will be vital to economic success for a business, the report noted.

“To sum it up, labor shortage will be one of the primary economic challenges in years to come, and it will pose new questions for employer and employee alike,” Metrotrends reported. “If you employ people, do not take them for granted.”

The report concludes by praising the region’s economic stability, which has a good chance to continue throughout this year assuming inflation continues to fall and the Federal Reserve delivers on its hints of cutting interest rates several times in 2024.

Metrotrends is delivered by Metroplan, an association of local governments that monitor and promote economic activity.

RECRUITING ASIAN ENTREPRENEURS

The Little Rock Venture Center is offering a new mentorship program to empower members of the Asian American and Pacific Islander (AAPI) community in Arkansas.

API Achieve aims to provide tailored support and guidance to entrepreneurs and industry leaders. Applications for the program are open through March 10.

Mentorship is the focus of the program, underscoring its critical importance in promoting the development and success of small businesses in Arkansas. AAPI Achieve will connect aspiring AAPI entrepreneurs with experienced executives and business leaders with similar cultural backgrounds.

“The success of The Venture Center’s Woman Achieve program is due in part to our belief that empowering and mentoring women entrepreneurs is not just a social responsibility, but a necessary step towards creating a more inclusive and equitable playing field,” said Mimi San Pedro, chief strategy officer for The Venture Center. “We believe that other groups, like our AAPI entrepreneurs, can benefit from a customized program specifically for their needs.”

Over 12 months, mentors will deliver personalized coaching and strategic business advice. Additionally, they will provide cultural understanding and empathy, essential for addressing the distinct challenges and biases that AAPI individuals encounter in the business sector.

More information is available at venturecenter.co.

LOW-INCOME LENDING

Arvest Bank is reporting big success in the first year of a lending program that supports small businesses that have trouble borrowing under traditional credit standards.

The Arvest Opportunity Fund, a subsidiary of Fayetteville-chartered Arvest Bank, assisted 245 small business customers with $7.16 million in loans in 2023. The initiative started in August 2022 across four states to provide loans, lines of credit and financial education to small businesses that don’t meet traditional bank credit requirements.

“In order for our customers to be successful, we have to have equal focus on lending and education,” said Hillis Schild, Arvest Opportunity Fund executive director. “Although we’re still relatively early in our journey, our customers who take full advantage of the educational programming are seeing promising results. We are very proud of them as they move forward in reaching their financial goals.”

The program acts as a bridge for customers to eventually access traditional bank products and services.

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