The Hot Springs Metropolitan Statistical Area or MSA is the sixth-largest in Arkansas with a population of 97,322 and encompasses all of Garland County. The Hot Springs Metro job gains accelerated during 2015, finishing out the year stronger than expected with the addition of 180-plus jobs. Another 200 jobs are expected to be added in 2016, representing an 11 percent growth rate. The Hot Springs Metro area is expected to see the strongest employment growth in healthcare services, professional and business services, and leisure and hospitality subsectors.
The unemployment rate in the Hot Springs Metro is expected to average about 5 percent in 2016, representing positive labor market conditions. However, demographic patterns imply a growing gap between the largest employee group, the Baby Boomers, and the Millennials who are expected to support the workforce in future years. As Baby Boomers retire, deep knowledge of a company’s operations and business history may also be lost. Local industry should carefully consider compensation and amenity packages to attract and retain the best and brightest talent, as advanced planning now can make for smoother transitions in the future.
With limited supply in the residential real estate market and continued population growth, home prices and construction activity are expected to continue at a positive rate. Capital investment in existing industry has also seen a spike in 2015 with more than $71 million invested in physical expansions, equipment purchases and modernization of facilities. The downtown district has seen 11 commercial real estate transactions and multiple renovation projects in 2015, representing an investment of more than $16 million. These indicators imply a growth in future labor force, consumer spending patterns, and commercial and residential real estate needs for 2016.
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