State of the State 2024: U.S., Arkansas economies could see dip in 2024, recovery in 2025

by Michael Tilley (mtilley@talkbusiness.net)

Editor’s note: The State of the State series provides reports twice a year on Arkansas’ key economic sectors. The series publishes stories to begin a year and stories in July/August to provide a broad mid-year update on the state’s economy. Link here for the State of the State page and previous stories.

The nationwide recession expected in 2023 never materialized, thanks primarily to a stronger-than-expected labor market and consumer spending. The new consensus is that economic growth will continue in 2024 but weaken compared to 2023.

“It looks like we dodged the bullet on the recession that was forecasted by many economists for 2023. In fact, the Arkansas economy had a strong first half — particularly in employment. There have been signs of slower growth in the latter part of the year, and I expect that to continue,” noted Michael Pakko, chief economist and state economic forecaster at the University of Arkansas at Little Rock’s Institute for Economic Advancement. “GDP growth is likely to be slow but positive. For the U.S., a consensus estimate is GDP growth of about 1.5%. It is likely to be less than 1% in Arkansas, given the relative size of our state’s manufacturing sector.”

State of the State 2024: U.S., Arkansas economies could see dip in 2024, recovery in 2025

Higher jobless numbers push Arkansas’ October jobless rate up to 3.1%

by Talk Business & Politics staff (staff2@talkbusiness.net)

A continued rise in the number of Arkansans without jobs pushed the state’s jobless rate from 2.9% in September to 3.1% in October. It’s the first time the jobless rate has been at or above 3% since March.

The number of employed in Arkansas during October was an estimated 1,350,628, up 27,041 jobs, or 2.04%, compared with October 2022, and below the 1,352,441 in September, according to the U.S. Bureau of Labor Statistics report posted Friday (Nov. 17). The October numbers are preliminary and subject to revision.

Arkansas’ labor force, the number of people eligible to work, in October was 1,393,177, up 1.6% from the 1,371,549 in October 2022 and above the 1,392,374 in September.

Higher jobless numbers push Arkansas’ October jobless rate up to 3.1%

Weekly update from State Representative DeAnn Vaught

Employment in Arkansas has increased for sevenconsecutive months. The latest report from the Arkansas Division of Workforce Services shows the unemployment rate at 2.8%.  By comparison, the national unemployment rate is 3.4%.

Compared to this time last year, there are 12,869 additional employed Arkansans.

While low unemployment rates are indicative of a healthy and growing economy, our efforts for economic development don’t end there.

The General Assembly is continuing to work on ways to foster innovation, encourage technological advances, and increase wages across the state.

In the 2023 Regular Session, we passed several pieces of legislation designed to continue increasing economic growth.

Act 746 creates the Rural Economic Development Initiative. The Rural Economic Development Initiative is established to provide funds to planning and development districts for distribution to projects in rural areas to further rural economic development and revitalization. If funding permits, a planning and development district may apply to the Arkansas Economic Development Commission for funds.

The 94th General Assembly also passed Act 485, an Act to Enhance Economic Competitiveness by Phasing Out the Throwback Rule. Athrowback rule mandates that sales into other states or to the federal government that are not taxable will be “thrown back” into the state of origin for tax purposes. The Arkansas Tax Reform and Relief Legislative Task Force recommended the repeal of the throwback rule as it harmed economic competitiveness with other states that did not impose the rule.

The General Assembly also passed the following acts concerning economic development during the recent session:

Act 34

This act eliminates the requirement for municipalities to collect a gross receipts tax on food or hotel stays to create an entertainment district.

Act 477

This act requires the Arkansas Economic Development Commission to conduct a study to determine the feasibility of developing a spaceport by 2024 if funding become available.

Act 517

This act increases the tax incentive for production and postproduction costs for a state-certified film project.

Act 196

This act reduces the maximum potential unemployment compensation benefits from 4 months to 3 months and reduces unemployment insurance tax rates for employers.

Act 106

This act disqualifies a person from collecting unemployment compensation for any week he or she fails to respond to a job offer or fails to appear for a job interview.

We will continue researching ways to improve the economy in every area of our state. You can find more information about economic development in our state by visiting arkansasedc.com

VIDEO: UA Cossatot Career Services

LaDonna White, UAC Career Services Coordinator, talks about how her office can help students in selecting a career and in searching for employment.

Arkansas-based Murphy USA To Hire 3,000 Employees, Offer $500

By TALK BUSINESS & POLITICS STAFF

Murphy USA Inc. plans to hire 3,000 workers across its 1,650 stores to support the company’s continued growth. The El Dorado-based company, with an estimated 2 million customers per day, will seek full-time and part-time employees, according to a press release from the company.

Current incentives include a 2021 Summer bonus of $500 at select stores for new team members who are hired by May 31.

https://www.ualrpublicradio.org/post/arkansas-based-murphy-usa-hire-3000-employees-offer-500

CREDIT TALK BUSINESS AND POLITICS

Summer Jobs Open

SUMMER EMPLOYMENT OPPORTUNITY!

Husqvarna, L&G facility, is currently accepting high school and college student applications for employment during the summer months on second shift. Pay range $15.25- $17.00 per hour. Students must meet the minimum age requirement.

When applying, write "SUMMER" at the top of the application.

Students can apply online through Facebook and/or Indeed. If they want to come in person we are having our Student Program Open House/Job Fair next Saturday, May 8th, from 10:00 – 12:00 p.m. They will get a plant tour, and we will have refreshments for them while they fill out their application.

Interested applicants may apply at:

Husqvarna

1 Poulan Drive

Nashville, AR

Arkansas’ Jobless Rate Dips to 4.4%, Tourism Sector Continues to Post Most Job Losses

by Michael Tilley (mtilley@talkbusiness.net)

Arkansas had 18,549 fewer employed in March compared to March 2020, with 60% of the job losses coming from the state’s hard hit tourism sector, according to Friday’s (April 16) report from the U.S. Bureau of Labor Statistics (BLS).

The state’s jobless rate in March was 4.4%, down from 4.5% in February and below the 3.8% in March 2020. The number of employed in Arkansas during March was an estimated 1,299,702, down 18,549 jobs compared with March 2020.

The biggest sector losses were in Leisure & Hospitality (11,100 fewer jobs), Government (down 8,600 jobs) and Education and Health Services (down 5,800 jobs). Manufacturing posted the largest year-over-year gains with 1,600 added jobs, and the Construction sector posted a year-over-year job gain of 1,000 jobs. The March numbers are preliminary and subject to revision. The report marked the first full year of COVID-19 impacts on the economy.

https://talkbusiness.net/2021/04/arkansas-jobless-rate-dips-to-4-4-tourism-sector-continues-to-post-most-job-losses/