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Report: Jonesboro Weathered Recession Well, Leads State in Job Growth

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The Great Recession caused millions of workers nationwide to lose their jobs in 2008 and afterward, and thousands of those losses were in Arkansas. Jonesboro, however, fared much better than other Arkansas cities during the economic downturn, and its job growth continues to be a standard-bearer in the Natural State.

Jonesboro has a broad job base that includes agriculture, government jobs, medical services and other sectors that help keep it somewhat immune to national trends, said Randall Kesselring, an economics professor at Arkansas State University. The lack of a major manufacturer in the city also means the area doesn’t suffer from the volatile economic fluctuations that plague other parts of the state and country.

“We still get hit when the economy trends downward,” Kesselring said. “But we tend to lose fewer jobs and bounce back faster because of our diverse jobs base.”

Jonesboro had the most robust job growth among the state’s major metropolitan areas in 2015, and that growth is expected to continue into this year, according to a report released by the U.S. Conference of Mayors.

Northeast Arkansas’ hub city had a 4.3 percent spike in job growth last year, and it’s estimated the jobs market will grow by another 2.3 percent this year, the report says. That means Jonesboro ranked first in the state in percentage job growth in 2015 and is projected to finish second in 2016.

Jonesboro is also projected to finish 64th in the country in job growth, the report says.

Jonesboro Regional Chamber of Commerce President Mark Young said the entire region’s economy is driven by the tens of thousands of jobs that are directly or indirectly tied to farming. Rice, cotton and soybeans are the primary crops grown in the northeast corner of the state.

Many businesses and financial institutions in the region are dedicated to providing goods and services to these farms.

In addition to agriculture, medical services and government jobs provide the lion’s share of jobs, he said. St. Bernards Healthcare is the largest employer in Jonesboro with 2,833 employees, according to the chamber. ASU ranks second with 2,435, and NEA Baptist Health System, which spent $400 million to build a new hospital and medical campus on U.S. 49 in northern Jonesboro that opened in early 2014, now employs 1,800 workers.

NEA hired more than 500 additional workers to support the new campus, according to news reports. Frito Lay, Hytrol and TeleTech Holdings Inc. are among the other companies that have expanded and added employees in recent years.

One of the chamber’s primary focuses is to attract a major manufacturer, Young said. The chamber president wouldn’t divulge whether his organization was working to bring any particular manufacturer to the city, but efforts are always ongoing, he said.

The steady jobs growth signals the stability of the Jonesboro area’s economy, he said.

“We’re extremely pleased when we see job growth numbers like that,” Young said.

Low Unemployment

Jonesboro currently has one of the lowest unemployment rates in the state, according to the U.S. Department of Labor. The city had a rate of 3.7 percent in December and has enjoyed a rate that hovered at or near 4 percent for the second half of 2015.

The city began 2015 with a 5.8 percent unemployment rate.

Unemployment rates do not include unemployed workers who have not sought a job in the last 30 days.

Jonesboro had 36,513 people in its workforce as of December, according to the U.S. Department of Labor. That’s a thousand more workers than at the beginning of the year.

Northeast Arkansas’ leading city was able to recover from the Great Recession, which began in early 2008, faster than any other major city in the state.

When the national economy cratered, Jonesboro’s unemployment rate steadily climbed from 6 percent in late 2007 to 9.1 percent in January 2010. Within a year the rate dropped more than a point, and by 2012 the rate was near prerecession levels.

Raw jobs numbers also indicate a swift recovery.

In January 2008, there were 31,383 city residents employed, according to the U.S. Department of Labor. Even as the U.S. and state economies continued to shed jobs, the number of people employed in Jonesboro spiked.

By July 2010, Jonesboro had withstood the brunt of job losses and more than 34,000 people were employed in the city.

Those jobs numbers don’t surprise Kesselring. A major manufacturer, such as an automaker, would spur the local economy and create a slew of high-paying jobs, he said.

But when the economy weakens, and it always does, car sales slow and people lose their jobs. Other businesses in the community rely on those customers, and the downturn turns into a spiral, he said.

Even when the economy is weak, the government still has to maintain services, medical appointments have to be kept, and everyone still has to eat, he said. Those sectors will never be as susceptible to economic downturns, he said. “Those are our primary job providers,” he said.

ASU had record enrollments in the years following the recession. Kesselring said that’s to be expected. When a worker loses his or her job, that person often returns to college to gain expertise or skills in another field. Once the economy improves, those numbers typically go down, he said.

Extra students in the city ultimately mean extra dollars are spent in the local economy, furthering job growth and sustainability, he added.

The potential uncertainty associated with a major manufacturer coming to Jonesboro is easily offset by the positive long-term economic impact it would have, Young said.

Since there are thousands of jobs already in existence tied to medical services, government and agriculture, the chances that a manufacturer would create tumult in the local economy isn’t likely, he said.

“We need as many jobs as we can create in Jonesboro … we’re headed in the right direction,” he said.

Major Jonesboro Area Employers   

Employer Sector Employees
St. Bernards Healthcare Health care 2,833
Arkansas State University Education 2,435
NEA Baptist Health System Health care 1,800
Wal-Mart SuperCenters (4) Retail 872
Jonesboro School District Education 690
City of Jonesboro Government 525
Nettleton School District Education 475
Mid-South Health Systems Health care 464
Valley View School District Education 338
Craighead County Government 302
Jonesboro Human Development Center Health care 299
Focus Inc. Educational services 265
Brookland School District Education 262
Ritter Communications Telecommunications 260
Trumann School District Education 247
Westside School District Education 246
Centennial Bank Financial 222
Harrisburg School District Education 203
HealthSouth Rehabilitation Hospital Health care 200

Source: Jonesboro Regional Chamber of Commerce. Does not include agriculture sector employment.


George Jared is a freelance journalist in northeast Arkansas.
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