State jobless rate continues to fall
State jobless rate continues to fall
This month it was announced that Arkansas’s unemployment rate fell below 5 percent for the first time since 2001. The unemployment rate for the state now stands at 4.8 percent while the national average is at 5 percent.
The unemployment rate is key to measuring the state of the economy. When an individual is out of work they lose their purchasing power. That can lead to a domino effect leading to unemployment for more workers.
I hear from many individuals asking just how the unemployment rate is determined. Some believe it is based on those seeking unemployment benefits. Others question if those who aren’t seeking work are included.
The answers to these questions can be found at the Bureau of Labor Statistics. The government conducts a monthly survey called the Current Population Survey (CPS) to measure the extent of unemployment in the country. The CPS has been conducted in the United States every month since 1940. The survey has been expanded and modified several times since then.
The survey excludes those living in a correctional institution, nursing or health care facility. Only those who are jobless, looking for a job, and available for work are considered unemployed. They may or may not be receiving unemployment benefits.
A stay at home mother for example would not be counted in the unemployment rate because she is not in the labor force.
The survey sample includes rural and urban populations.
For years it has helped to guide policy makers in determining what efforts are helping the workforce and what factors are contributing to decline.
In general, Arkansans must now meet work requirements in order to be eligible for SNAP, commonly known as food stamps. These work requirements include registering for work, not voluntarily quitting a job or reducing hours, taking a job if offered, and participating in employment and training programs assigned by the State. Failure to comply with these requirements can result in disqualification from the Program.
In addition, able bodied adults without dependents, are required to work or participate in a work program for at least 20 hours per week in order to receive SNAP benefits for more than 3 months in a 36-month period.
Some special groups may not be subject to these requirements including: children, seniors, pregnant women, and people who are exempt for physical or mental health reasons.
Knowing that more Arkansans are back on the job will have an impact on our economic forecast as we begin to craft our next budget.
From State Representative Deborah Ferguson
