Arkansas experienced a third consecutive month of decline in unemployment, recording a 5.8 percent rate for November, the U.S. Bureau of Labor Statistics said.
Unemployment was at 6.2 percent in September and fell to 6 percent in October. Arkansas also added 10,300 employed workers, another positive sign for the state's economy, economists said.
Michael Pakko, chief economist at the Institute for Economic Advancement at the University of Arkansas at Little Rock, said the state's addition of more than 10,000 workers is the largest gain he can find since 1985, when statistics were first tabulated. For November, the state's labor force was at 1,315,600.
"It doesn't get much better than this," Pakko said. "It's a three-month trend of positive momentum."
Economists were concerned earlier this year when declines in unemployment were accompanied by a decline in workforce. Since September, the data show an increase in workforce and a decrease in unemployment.
Arkansas' unemployment rate fell 1.7 percentage points year-over-year. Nationally, the unemployment rate was 5.8 percent, holding steady from October.
Labor force includes those working or looking for work in the state. Anyone who has stopped looking for work in Arkansas because of retirement, a search outside the state or other factors is not included.
The number of employed workers in Arkansas is up 11,900 compared to November 2013. Unemployed workers dropped from 79,100 in October to 76,900.
Since 2013, the number of unemployed workers is down 22,600, and about half that number was added to the workforce.
"It looks like those declines are slowing. It's getting better," said Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas at Fayetteville. "We're almost back to a flat labor force perspective and at the same time seeing jobs being created. That's how we want this to happen."
Workforce gains were recorded in seven major industry sectors. As expected during the holiday season, retail -- part of trade, transportation and utilities -- experienced an increase, adding 3,700 jobs.
Government workers increased by 1,300, including 1,100 at the local level.
A decline of 2,400 workers came in professional and business services. Leisure and hospitality shed 1,200 jobs. Many of the jobs lost in those categories were described as typical for the season.
Arkansas continued to experience growth in manufacturing and construction segments. Since November 2013, the state has added 5,400 jobs in manufacturing and 4,000 in construction. Those construction additions are strong signs that the economy is improving as businesses and citizens feel more comfortable investing in new projects.
"We all like to see manufacturing and construction jobs and right now we see a lot of them," said Marc Fusaro, an associate professor of economics at Arkansas Tech University in Russellville. "We see a lot of new manufacturing and construction. People like seeing those things happen. We love the service sector jobs, too, but construction is a leading indicator. When you see that sector is strong, it's telling."
Amid the positive news are some troubling year-to-date statistics for the state and Northwest Arkansas in particular.
Trade, transportation and utilities jobs -- which Deck said employ about one in five Arkansans -- continue to lag behind other areas of growth, and the sector did not improve year-over-year.
Nationally, the segment is trending upward, but growth in Arkansas has been slower. Arkansas did add 5,400 jobs in November, but Deck said work remains. Even with the more than 5,000 jobs added to trade, transportation and utilities for November, the category is only up 1,700 for the year.
Traditionally, these jobs -- which include Wal-Mart, its vendors, trucking and logistics -- have been the "bread and butter in Arkansas and Northwest Arkansas," Deck said.
"It behooves Arkansas business leaders to make sure our employees in that sector are poised to take advantage toward the shifts in home delivery and online fulfillment and all those wonderful pieces as brick and mortar is likely to suffer not just now, but into the future," Deck said. "We know Wal-Mart is certainly working to provide customers their delivery wherever they want it. We need to make sure the rest of Arkansas is supporting industry to move in that direction."
Washington, D.C., reported the country's highest unemployment rate at 7.4, followed by Mississippi at 7.3. California and Georgia were at 7.2. North Dakota at 2.7 percent had the lowest unemployment rate in the U.S.
A Section on 12/20/2014