Arkansas News Bureau

LITTLE ROCK — Arkansas’ unemployment rose two-tenths of a percentage point in July to 7.4 percent, the state reported today.

The unemployment rate last month was the highest since June 1992 when it reached 7.3 percent, state Department of Workforce Services spokeswoman Kimberly Friedman said.

The state jobless rate was 2 percentage points below the national rate, which dropped one-tenth of a percentage point to 9.4 percent.

“This unemployment rate increase was not unexpected with nonfarm payroll jobs declining between June and July,” Friedman said. “Arkansas is still feeling the effects of the recession, though we continue to have a jobless rate lower than most other states.”

The unemployment rate in Arkansas in July 2008 was 4.5 percent, and the national unemployment rate was 5.7 percent.

The state’s civilian labor force decreased 5,299 in July, with 7,500 fewer employed and 2,300 more unemployed in the state.

About 1.2 million Arkansans were employed during July, while 100,900 were out of work in the state DWS reported.

The largest drops were in government, educational and health services, and trade, transportation and utilities.

Government jobs dropped 11,900, a majority of the loses seasonal due to summer break at public educational facilities.

Educational and health services dropped 1,500, mostly in health care and social assistance.

Trade, transportation and utilities also dropped 1,500, mostly because of economic and seasonal losses in all sectors.

Leisure and hospitality jobs dropped 1,100, mostly in the feed serves because of seasonal factors.

Minor growth was reported in mining, logging and information sectors.