Counties in state recover unevenly

Study compares economic growth, pre-recession levels

WASHINGTON -- The economies of many Arkansas counties continue to struggle years after the last recession, according to a study by the National Association of Counties.

Nationally, the economy grew rapidly in recent months and the country's unemployment rate is closer to pre-recession levels, but that recovery is uneven, according to the study released Monday.

The study compared each county's unemployment rate, job growth, economic output and median home price in 2014 to each year between 2009 and 2013.

Emilia Istrate, the association's research director and the study's author, said it was necessary to view each county over several years because different counties went through economic decline at different times and at different rates.

"Counties do not exist in aggregate; each and every county economy had its own recession and its own recovery," she said.

Of more than 3,000 counties nationwide, only 65 returned to pre-recession levels in all four categories. Nearly three-quarters of counties have unemployment rates above pre-recession levels. In several southwestern and Midwestern states, many counties have yet to reach their pre-recession level in even one category.

How quickly a county's economy has rebounded depends on its population and what kind of work is available, she said.

None of Arkansas' 75 counties returned to pre-recession levels in all four categories, according to the report. In Northwest Arkansas, several counties' economic output or home prices rebounded, while unemployment and job growth remained below previous levels.

Three counties exceeded pre-recession levels in three categories; 31 counties reached two categories; and 28 counties, including Pulaski County, reached pre-recession levels in one category. Thirteen counties, many of which are in southwest Arkansas, haven't returned to pre-recession levels in any of the categories.

County-specific information is available online at http://explorer.naco.org.

Counties that produce energy or have a large population have rebounded the best. Sparsely populated counties and those reliant on agriculture jobs fared worst.

Istrate said Arkansas' recovery is consistent with the country as a whole.

"Nationally we see a patchwork of recovery," she said. "The Arkansas story ... it's very much in sync with the national story that we see a sluggish and uneven recovery."

In southwest Arkansas, Mike Rowe -- the county judge in Lafayette County -- said he sees how uneven the recovery has been.

"We still have some problems even through we're rebounding from the recession. We've still got a ways to go in some of our small counties, and certainly we need all the help that we can [get]," Rowe said.

His county of 7,252 people has been losing businesses and people for decades.

"We have not been able to attract key industry to come in to Lafayette County," he said.

The newly elected county judge said he wants Lafayette County to become more competitive in attracting new businesses.

"It's just like an athletic event; you've got to prepare yourself to go out and win," Rowe said.

That means persuading the Arkansas Department of Workforce Services to provide training services in the area and to clean up the county by picking up litter and getting rid of abandoned homes, he said.

"We've got to get our county prepared to accept industry," he said. "We're starting at ground zero."

Jimmy Jones, county judge of Dallas County, said the loss of one major employer, such as when Georgia-Pacific closed its Fordyce facility in 2009, can have a significant effect on a county with a small population. Jones said the south-central county and its 7,933 residents have worked hard to retain businesses.

"We have got to get jobs back in our area," Jones said. "When the Georgia-Pacific plant closed here, it hurt. It hurt our home sales, our schools, we lost students in our schools. We just need some type of industry that will create some job growth in our area."

Arkansas Economic Development Commission spokesman Scott Hardin said Arkansas came through the recession better than a lot of places.

"That's not to say that we don't recognize the counties that are suffering or not doing as well because there definitely needs to be some attention paid to those counties," Hardin said.

Hardin said the state has grants and programs to help struggling counties build infrastructure to attract new businesses. The commission also works to shore up existing businesses.

"In these areas that are not doing as well, we're really going to make an effort to be sure that the existing employers are doing well, that they are healthy, that they have the tools they need to not only remain there but to hopefully expand," he said.

Only Craighead, Faulkner and Saline counties have seen home prices, job growth and economic output rise to pre-recession levels, but unemployment rates in those counties remain higher than they were, according to the report.

Jeff Arey, the county judge in Saline County, said the central Arkansas county didn't experience high foreclosure rates during the downturn or high real estate prices in the years before as other areas experienced.

"I don't think our real estate prices were inflated to begin with," he said. "It was easier to come back to what's level."

Arey said cities in the county of 114,404 people have worked hard since the recession to entice new businesses and be places their employees want to live.

"You've got some pretty aggressive cities that have done a good job in attracting businesses to our county," Arey said. "We're definitely fortunate."

Jim Baker, county judge in Faulkner County, said natural gas extraction from the Fayetteville Shale provided a boon at the right time.

"That came about right before the break in the economy, carried us through and really did help stabilize some of the economy in Faulkner County," Baker said. "It helped us during the time of recession, but it helped us a whole lot in the recovery."

The universities and colleges in Conway helped his county of 119,580 people avoid some of the harsher aspects of the recession and also helped it recover quickly, he said.

"We live in a fortunate area here in central Arkansas that has seen good job growth," Baker said.

Metro on 01/15/2015

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