Arkansas’ seasonally adjusted unemployment rate dropped two-tenths of percentage point, from 5.4 percent in August to 5.2 percent in September.
The Arkansas Department of Workforce Services said Tuesday that Arkansas’ civilian labor force declined by 1,400 last month, the result of 2,500 fewer unemployed and 1,100 more employed Arkansans. The U.S. jobless rate remained stable at 5.1 percent in September.
Arkansas’ nonfarm payroll employment rose by 12,300 in September to total 1,219,400. The state reported 1.7 percent year-over-year growth in non-farm payroll, just behind the 1.9 percent growth posted by the U.S. as a whole, the report said.
Five major industry sectors added jobs from August to September, which the department said offset declines in six sectors. Among the sectors reporting gains:
Government increased by 12,900. All gains occurred in local (7,800) and state (5,200) government, due to public school employment.
Jobs in educational and health services rose by 2,000 related to seasonal growth in educational services (1,600).
Construction added 1,100 jobs, with hiring reported in both heavy and civil engineering and in construction of buildings.
Kathy Deck, director of the Sam M. Walton College’s Center for Business and Economic Research at the University of Arkansas, said that construction is by far the state’s soundest sector.
"On a percentage basis, obviously construction has the most significant job growth," Deck said. "Arkansas is very, very strong in construction."
Trade, transportation and utilities dropped by 1,900, with most of the loss occurring in retail trade (1,400), an expected decline between shopping seasons.
"Transportation utilities and wholesale trade are likely to be weak through the end of the year," Deck said. But she said she would be watching the final months of the year to see whether seasonal hiring will offset some of the supply.
Compared to September 2014, nonfarm payroll jobs in Arkansas have increased by 20,300. Seven major industries posted growth, while employment in four sectors decreased. Among the sectors adding jobs:
Construction added 7,800 jobs, mostly in specialty trade contractors (5,800).
Employment in educational and health services rose by 5,600.
Gains in health care and social assistance (6,300) offset losses in educational services (700).
Professional and business services added 5,400 jobs.
Jobs in leisure and hospitality increased by 4,100, largely in food services (3,600).
Manufacturing posted the largest decline. A majority of the loss was reported in durable goods manufacturing, down by 2,100.
But overall, Deck believes that "Arkansas looks to be growing at a good clip."