Arkansas Unemployment Rate Falls to a Record 3.8 Percent

Arkansas' unemployment rate continued to fall in January to the lowest on record, 3.8 percent. The rate was 3.9 percent in December and 4.2 percent in January 2016. "If you go back, last year, it was originally reported that the unemployment rate was 3.8 in May, but recent revisions have taken that away. It looks more like the unemployment rate has been steadily declining over time to now reach the new record low of 3.8 percent," said Michael Pakko, chief economist and state economic forecaster with the Institute for Economic Advancement (IEA) at the University of Arkansas-Little Rock. The Arkansas Department of Workforce Services said Arkansas' civilian labor force decreased by 1,275, the result of 2,098 fewer unemployed and 823 additional employed Arkansans. Pakko said it's a "good sign" that both figures are moving in the right direction. He also said, "A 3.8 percent unemployment rate relative to the overall population doesn't mean the same thing now compared to, say, 10 years ago, because the labor force participation rate has fallen so dramatically." Since the recession hit in 2007, labor participation has fallen by about 5 percentage points, Pakko said. Lower participation is a long-term trend, and one cause is demographics, he said. The country has an aging population and more people are retiring.  "Many economists believe that the very weak labor force/labor market over the course of this economic expansion since the recovery of 2010 and beyond has been a re...
Source: Arkansas Business - Health Care - Category: American Health Source Type: news