The unemployment rate in the Little Rock zone averaged 3.8 percent in the second quarter, its lowest rate on record according to the latest Little Rock Burgundy Book.
The Fayetteville MSA unemployment rate remained the lowest in the zone at 2.8 percent, followed by the Little Rock MSA rate at 3.4 percent, according to the report, released Wednesday.
The Burgundy Book is a quarterly review of economic information by the Federal Reserve Bank of St. Louis. The St. Louis district's Little Rock zone includes the majority of Arkansas, except the northeast part of the state. The population in the zone is about 2.5 million, including 710,000 who live in the Little Rock metropolitan statistical area.
More: See the complete report.
According to the report, payroll employment growth remained positive across the zone in the second quarter with business contacts suggesting that nominal wages were increasing. Almost two-thirds of respondents reported that wages were higher or slightly higher in the third quarter compared with the same period last year.
Manufacturing employment declined slightly across the zone in the second quarter, but employment in the nondurable goods sector grew by 2.1 percent.
The report said employment growth in the transportation sector slowed sharply from 3.3 percent last quarter to 0.2 percent. Despite the slow job growth, transportation contacts continued to report strong demand for truck drivers.
"Truck drivers continue to be in high demand. Some companies struggle to hire new drivers after the retirement of experienced drivers," a southwest Arkansas contact said in the report.
Related: Arkansas Trucking Association looks to college for driver help.
Growth in home sales increased by more than 15 percent over sales in the second quarter of 2015. Construction activity was also strong and building permits increased at a faster rate than the U.S. as a whole.
In the Little Rock zone, credit card delinquency has continued to accelerate and households slightly increased their mortgage debt balances.
In auto sales, dealers reported that sales fell short of expectations; however, auto debt growth remained high.
In the agriculture industry, consistent rain and increased acreage are expected to result in large production increases for corn, cotton, and rice. Sorghum and soybeans are both expected to experience production declines, with sorghum production projected to be less than 10 percent of last year’s; this is the result of a sorghum price drop and pest issues.