By Rob Moritz
Arkansas News Bureau
LITTLE ROCK — Arkansas’ unemployment rate dropped two-tenths of a percentage point in November to 7.4 percent, according to labor statistics released today.
The national unemployment rate dropped two-tenths of a percentage point in November to 10 percent.
During the month, the state’s labor force rose by 7,900, a result of more than 10,300 more employed and 2,400 fewer unemployed, according to the state Department of Workforce Services.
“The decline in Arkansas’ unemployment rate reflects the decrease that occurred on the national level,” said department spokeswoman Kimberly Friedman. “Arkansas experienced fewer layoffs in November, which contributed to the decline in our rate.”
The unemployment rate in Arkansas in November 2008 was 5.5 percent, the national unemployment rate was 6.8 percent.
About 1.37 million Arkansans were employed in November, while 101,600 were out of work in the state, DWS reported.
The unemployment rate was announced on the same day that the Arkansas Legislative Council was told that the state’s unemployment trust fund is struggling because the newly unemployed have been drawing down the fund faster than employers can refill it.
In fact, the state has had to borrow federal funds to pay unemployment benefits and now owes the federal government $223 million, DWS Director Artee Williams sold lawmakers.
Williams said no decision has been made on whether to raise the unemployment tax on employers, and lawmakers agreed that the issue should be further discussed.
Williams said because more than 20 other states are in the same position as Arkansas, there is a possibility the federal government may forgive some or all of the debt.
Lawmakers agreed to review the problem during upcoming budget hearings in advance of the 2010 fiscal session.
Today’s unemployment numbers showed the largest gains during the month occurred in trade, transportation and utilities, rising by 3,000, including about 2,100 jobs related to annual holiday shopping and retail trade.
The leisure and hospitality sector lost 1,800 jobs over the month, with a majority of the losses attributed to seasonal fluctuations in accommodation and food services.
Employment in educational and health services fell 1,500, due mostly to a loss of jobs in health care and social assistance.
Professional and business services lost 1,300, about 800 of those in administrative and support services, which includes employment and business support services.
