COVERED EMPLOYMENT AND EARNINGS STATE OF ARKANSAS THIRD QUARTER 2003

MIKE HUCKABEE, GOVERNOR
STATE OF ARKANSAS

SANDRA WINSTON , EXECUTIVE DIRECTOR
ARKANSAS WORKFORCE INVESTMENT BOARD

PUBLISHED BY

BUREAU OF LABOR STATISTICS PROGRAMS
ARKANSAS WORKFORCE
POST OFFICE BOX 2981
LITTLE ROCK, ARKANSAS 72203-2981
AL CRUMBY, LMI CHIEF
TELEPHONE: (501) 682-3198

STATE OF ARKANSAS HOME PAGE:
http://www.accessarkansas.org

ARKANSAS EMPLOYMENT SECURITY DEPARTMENT HOME PAGE:
http://www.accessarkansas.org/esd/

RELEASED: MARCH 2004

TABLE OF CONTENTS
Description of Data
Industry Classification
Definition of Covered Employment and Earnings
Federal Government Employment
County Classification
Significant Developments During Third Quarter 2003

LIST OF GRAPHS AND TABLES

Total  Covered Employment in Arkansas, 1996 - 2003 (table & graph)

Total Covered Earnings, 1996 - 2003 (table & graph)

Table 1 Quarterly Comparison of Covered Employment and Wages, by Industry

Table 4 Total Taxable Earnings, 1996-2003

Table 5 State Summary - Employment and  Earnings, by Industry, Third Quarter 2003

Table 6 County Data - Employment and   Earnings, by Industry, Third Quarter 2003:
                                       
                                        A.)  County Data A - D
                                        B.)   County Data F - L
                                        C.)   County Data M - P
                                        D.)   County Data R - Y

Table 7 Federal Government Employment and Earnings in Arkansas, Third Quarter 2003

EMPLOYMENT AND EARNINGS
UNDER THE ARKANSAS EMPLOYMENT SECURITY LAW
THIRD QUARTER 2003

DESCRIPTION OF DATA

This publication contains covered employment and payroll data by industry and county for the Third Quarter 2003. These data are compiled from quarterly contribution and wage reports submitted by employers subject to the Arkansas Employment Security Law. An employing unit is a single physical location where business is conducted, production takes place, or services are provided. Employment data have been tabulated for each month of the quarter by industry under the North American Industry Classification System (NAICS) (see "Industry Classification" below) on a statewide and county basis. Payroll data represent the total wages paid during the quarter, and are also shown by industry for the State and by publishable industry groups for each county. The tabulation of this data is a joint effort in conjunction with the U.S. Bureau of Labor Statistics. In addition, there are tables included which set out total covered employment by months, quarterly payrolls, and average weekly earnings for the years 1996 through 2003. Data contained in this publication are subject to revision. These revisions will be reflected in the 2003 Annual Covered Employment and Earnings publication. Because of industry code changes between years, substantial employment and wage shifts among industries are anticipated.

INDUSTRY CLASSIFICATION

Previously published industry data will not be comparable in all instances with currently published data since industry codes have been revised according to the following Manuals: (a) between January 1, 1958 and December 31, 1967, industry codes were assigned under the 1957 Standard Industrial Classification (SIC) Manual; (b) between January 1, 1968 and December 31, 1974, industry codes were assigned under the 1967 Standard Industrial Classification (SIC) Manual; (c) between January 1, 1975 and December 31, 1987, industry codes were assigned under the 1972 Standard Industrial Classification (SIC) Manual; (d) between January 1, 1988 and December 31, 2000, industry codes were assigned under the 1987 Standard Industrial Classification (SIC) Manual; and (e) since January 1, 2001, industry codes have been assigned under the 2002 North American Industry Classification System (NAICS) Manual.

The NAICS Manual represents a significant change in coding methodology as compared to the SIC Manual. One of the most significant changes involves how NAICS treats auxiliary units. Auxiliary units are establishments primarily engaged in performing management or support services for other establishments of the same enterprise. The SIC code for these units was based on the activity of the enterprise served. The NAICS code is based on the actual activities that the establishment performs. Comparisons of many industries should not be made between this publication and previous Covered Employment and Earnings publications that were based on SIC. Even though some titles are the same or similar, in nature, NAICS and SIC could differ in the classification of employers. The implementation of NAICS represents a profound change for statistical programs, and will create significant benefits along with transition obstacles for both data collectors and data users. A summary is available on the NAICS home page at http://www.census.gov/naics.

                                                                                        
                                                                (visit this link for the NAICS homepage)

DEFINITION OF COVERED EMPLOYMENT AND EARNINGS

Covered Employment is the number of workers employed by employers subject to the Arkansas Employment Security Law who worked or received pay for the payroll period including the 12th of the month. An employer is subject to the law when they employ one or more employees in each of ten days during the current or preceding calendar year.

Currently excluded from coverage is employment covered by the Railroad Unemployment Insurance Act, some domestic service workers, employees of small agricultural establishments, self-employed and unpaid family workers, insurance and real estate agents who are on commission only, and employees of churches and religious organizations except separately incorporated schools. The payroll information in this publication includes all wages and salaries paid to any covered employees by their employers including bonuses, commissions, and cash values of remuneration received in any medium other than cash. These wages include both taxable and nontaxable wages. Only the first $9,500 paid to each worker by an employer in the calendar year is taxable under the Arkansas Employment Security Law.

FEDERAL GOVERNMENT EMPLOYMENT

Table 7 lists the total number of civilians employed by the Federal Government in Arkansas during the Third Quarter 2003. Employment and wage data are set out by industry divisions. These data are obtained from required reports submitted by various government agencies having employment in the State. Civilian Federal workers are covered by the Unemployment Compensation for Federal Employees (UCFE) program.

COUNTY CLASSIFICATION

Employment and payroll data by county are classified according to the county where the workers are employed. Employers with operations in more than one county are requested to furnish this agency with a breakdown of employment and wages for at least one quarter of each year by the counties in which they operate. Many such employers submit county data with each regular contribution report. Note: This information is invaluable in the preparation of monthly employment and payroll data by county. Employment and payroll data for multi - area employers who do not furnish county data each quarter of the year, are prorated by county on the basis of one quarter's information. The "rest-of-state" table(click here to view) includes data on firms that did not provide a county breakdown of employment and payrolls. It also includes sales, and all other type of personnel with no permanent place of work, as well as employment of employers with no established place of business in Arkansas.

SIGNIFICANT DEVELOPMENTS DURING THIRD QUARTER 2003

AVERAGE EMPLOYMENT CHANGES

Covered employment averaged 1,081,850 during the Third Quarter 2003 (see table 1), a decrease of 19,554 (-1.8%) from the previous quarter and, 7,111 (-0.7%) below the average recorded one-year ago. This over-the-year decline is more significant when used as an economic indicator. This over-the-year comparison allows for the disregarding of many seasonal factors that are evident when making an over-the-quarter comparison.

EMPLOYMENT CHANGES FROM SECOND QUARTER 2003

Over-the-quarter gains were recorded in eight industry groups (see table 1). Trade, Transportation, & Utilities had the largest increase of 1,664 jobs. Retail Trade accounted for 74% of the increase as most stores start to get ready for the upcoming school year. Construction posted a significant increase of 1,273 as many companies start to wrap up jobs before the winter season. Leisure & Hospitality added 1,082 new jobs. Accommodation & Food services accounted for most of the increase.

Three industry groups show losses in the job market mainly due to seasonal factors. The largest decrease occurred in State & Local Government as most schools have completely closed for the summer.

EMPLOYMENT CHANGES FROM THIRD QUARTER 2002

Over-the-year gains were recorded in six industry groups while 5 recorded losses (see table 1). Significant gains were posted in Education & Health Services (3,523), State & Local Government (2,881), and Professional & Business Services (1,359). The greatest losses occurred in Manufacturing (-8,798), then followed by the Construction industry (-4,698), and the Trade, Transportation, & Utilities industry (-1,792).

COVERED WAGES

Wages paid to covered workers totaled $7,520,875,258 for the Third Quarter 2003 (see table 1), for an average weekly wage of $534.76. Little River County employees recorded the highest average weekly wage ($672.43), and workers in Newton County the lowest ($310.29).

The Information sector recorded the highest average weekly wage for the State of Arkansas at $688.85, while the Leisure & Hospitality sector recorded the lowest at $207.24 for the State of Arkansas.

Note: Because of industry code changes between years, substantial employment and wage shifts among industries are anticipated.