The latest report on state employment and unemployment continues to suggest that Arkansas is not being substantially effected by the softening labor market conditions nationwide. With the U.S. unemployment rate rising 0.2 percentage points in July to 4.3%, today’s report shows the Arkansas unemployment rate was stable at 3.3%.
The household survey showed another significant increase in employment in July, up by nearly 5,000 (+4,918). In just the past six months, household employment has increased by over 20,000. The number of unemployed edged slightly higher in July (+211), but that was the first increase since January and the number of unemployed remains well below the 50,000 benchmark at the start of the year. The combination of increasing employment and unemployment meant that there was another boost to labor force participation (+5,129)—the sixth consecutive monthly increase.
Recent labor force growth as been reflected in the labor force participation rate, which rose to 57.9% in July—fully recovering from the low rates that have prevailed over the past four years. Increases in the participation rate should alleviate some of labor shortage conditions, as reflected in the still-elevated but declining number of unfilled vacancies (See JOLTS).
Payroll Employment
Nonfarm payroll employment declined by 1,700 jobs in July (seasonally adjusted). The large increase in the previous month was revised downward by 3,400 jobs, but remains a net increase of 5,300 for June. Most sectors showed small changes in July, with some notable exceptions. Other Services (which includes repair and maintenance services, personal services, etc.) declined by the same number of jobs as the total—a huge proportionate decline for a relatively small sector. Looking back to the previous month, however, there was an unusually sharp increase, which July’s change reversed. Professional and business services declined by 800 jobs in July, with a sharp dop-off in Professional, Scientific, & Technical workers but increases in other subsectors.
Employment in Construction also declined sharply (-800 jobs). Severe weather during the survey reference period might have had an impact on the monthly drop. Nevertheless, growth in construction employment, which had been exceptionally strong during 2022 and 2023, has been sagging during the first half of 2024.
Despite the July decline, Arkansas payroll employment remains near its all-time high, and has increased by 1.7% over the past twelve months. U.S. job growth was 1.6% over the same period.
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Seasonally adjusted data for Arkansas nonfarm payroll employment, reported in a format consistent with the monthly news release from the Arkansas Division of Workforce Services, can be found here: Table-Seasonally Adjusted NFPE.