The state employment report for October continued to indicate a trend of better-than-expected employment growth and low unemployment. The unemployment rate remained at 3.3%, significantly lower than the national average of 4.1%. Employment growth continues to be impressive, whether measured in the household survey data or the establishment survey data. By any measure, total Arkansas employment was at record levels in October.
Household Survey Data
The unemployment rate was unchanged at 3.3%. The number of unemployed was essentially unchanged (+132), while both the number of employed and the total of labor force rose by over 3,000.
The Arkansas labor force participation rate was unchanged at 57.1%, having recovered to pre-pandemic levels in recent months. The U.S. participation rate remains slightly lower than in 2019, consistent with long-term trends associated with an aging population.
Payroll Survey Data
The information from the payroll survey was also generally positive. Total nonfarm payrolls were up by 2,900 jobs in October and job growth in September was revised upward by 700 jobs (seasonally adjusted). Employment in goods-producing industries was up slightly in October, with gains in Construction and Durable Goods Manufacturing offsetting losses in Nondurable Goods Manufacturing. In the service-providing sectors, Retail Trade was the only sector with notably negative employment growth. In the not-seasonally adjusted data, employment in Retail Trade was unchanged, so the decline in the seasonally adjusted statistics can be interpreted as indicating that employment in that sector has fallen short of the increase that typically happens at this time of year, relative to trend.
In the year-over-year statistics, total employment is up by 21.7 thousand jobs, with over half of those represented by the increase in Education & Health Services (primarily Health). Health Services represent the largest contributor to longer-run employment growth as well, with significant contributing sectors that include Construction, Retail Trade, and Professional & Business Services.
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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.