Arkansas has too many? low-wage, low-skill, low-risk? jobs.
That was among the points to come from the Quarterly Business Analysis breakfast held recently on the UCA campus.
Jeff Collins, director of the Center for Business and Economic Research at the Sam M. Walton College of Business at the University of Arkansas, gave a statistical presentation on economic trends past, present and projected to about 30 university and community leaders at the event that was hosted by UCA and the Conway Chamber of Commerce in partnership with the Walton College of Business.
Collins blamed the fact that Arkansas? unemployment rate is higher than the national average on the state?s ?over-investment? on low-wage, low-skill, low-risk job.
?If we don?t provide what is necessary for business, business will find it elsewhere,? Collins said.
On the topic of new jobs, Collins added that more and more job creation is taking place today in smaller firms, a change from the past. He sees cities like Fort Smith and possibly Harrison with economic troubles ahead because of manufacturing jobs that could be outsourced.
He attributed the bumpy, roller coaster ride of the Index of Consumer Sentiment to the obvious 9/11 tragedy and more recently the corporate scandals that have also been a jolt to the state?s economy.
Consumer debt continues to escalate, and Collins said Arkansas is the number one state in growth of personal bankruptcies.
Interest rates have been at an all-time low, but Collins agrees with the national forecasters, saying, ?You shouldn?t expect them to stay this way.? As a result, he sees construction slowing down, but a modest rebound in manufacturing.
On the topic of Lakeview, Collins said it costs money to remediate people, but expressed concern at the method chosen by the Legislature to getting the state into compliance with the court?s directive. Saying Arkansas is now the fourth highest in the nation in sales taxes, Collins is concerned that such taxes may cause people to go across the border for purchases such as gasoline and other higher ticket items. But he added that recent collections have been stronger, and he believes revenue projections for state spending will hold up.
Conway Chamber CEO/President Nancy Elphingstone said that while the city had been hurt by the loss of some manufacturing jobs, the new retail outlets at Conway Commons are providing more jobs for persons, including some at the department manager level that will be higher paying.
UCA President Lu Hardin hosted the event and also introduced Collins.
-Tommy Jackson