By Roby Brock

Arkansas’ unemployment rate rose to 7.7 percent in December, a three-tenths of a percentage point jump from November.

One year ago, the state’s jobless rate was two full percentage points lower at 5.7 percent. National unemployment stood at 10 percent in December.

For the full year, manufacturing employment declined by 14,100 jobs. The trade, transportation and utilities sector dropped 10,600 workers. Government posted moderate annual growth of 4,800 jobs.

Home sales rally in late 2009
Statewide home sales barely dropped in 2009 thanks to a stellar final two months of the year, according to statistics provided by the Arkansas Realtors Association (ARA).
In November, statewide home sales jumped 53 percent versus the previous year, while December sales rose more than 12 percent. For the full year, home sales in Arkansas were down 0.98 percent.

“No, you’re eyes don’t deceive you — those are some of the best housing market reports we’ve released in some time,” said Ethan Nobles with the ARA. He noted that the first-time home buyer tax credit and prolonged low interest rates boosted the housing market in the latter part of the year.

Average home prices statewide rose slightly during the two months – 3 percent in November and 5.5 percent in December. For the full year home prices are down 3 percent.

El Dorado Promise turns three
On its third anniversary, El Dorado Promise officials say that school enrollment is up and new families are moving to the South Arkansas community despite a troubled economy.

The El Dorado Promise was announced in January 2007. It involved a $50 million investment from Murphy Oil Corp., which is headquartered in El Dorado. The Promise pays for college tuition and fees for El Dorado public school graduates who maintain a minimum grade point average.

El Dorado’s unemployment rate topped 13 percent in 2009 when a Pilgrim’s Pride chicken plant closed in the community. Still, local officials say the Promise’s impact may have softened the blow to an extent.

More than 1,000 new students have enrolled in the El Dorado School District, a 4 percent increase overall. Families have relocated to El Dorado from 31 other states and 13 foreign countries, according to Promise officials.

Also, 79 percent of the community’s high school seniors enrolled in college in 2009. One-fourth of the 2009 Promise recipients are first generation higher education students.

Home Bancshares profits more than double
Home Bancshares, parent company of Centennial Bank, announced fourth-quarter and full year earnings this week. The Conway-based bank holding company reported record quarterly net income of $7.9 million in its fourth quarter, which boosted its full year profits to $26.8 million.

One year ago, Home Bancshares posted full year profits of $10.1 million.

Last week, Home Bancshares filed a prospectus with the SEC outlining a proposal to raise as much as $200 million in new capital. If approved, the Conway-based bank holding company could seek to raise money for future acquisitions.

Simmons First has solid quarter
Simmons First National Corp. posted fourth quarter earnings of $6.8 million, a 21 percent increase over the same period in 2008. Simmons First officials said that non-interest income and improving net margins were the primary drivers for the gains.

For the full fiscal year, Simmons First net income was $25.2 million, down slightly from $26.9 million one year ago.

Tax hike on business owners could shore up trust fund
State Sen. Larry Teague, D-Nashville, is worried about the rising debt the state has with the federal government related to Arkansas’ unemployment trust fund. At the end of 2009,

Arkansas had borrowed $222 million to shore up its account balance to pay for jobless benefits for laid off workers.

Teague says he wants to file legislation in the upcoming fiscal session to address the debt. He is considering a hike in the unemployment tax that business owners pay to the state and also wants to propose reducing benefits paid.

“Seems to me that maybe both sides ought to help correct the situation,” Teague said.

If Teague moves forward, his bill will need a two-thirds vote of both chambers to be considered.