Arkansas” unemployment rate continued to move in a downward trajectory, but so did the state”s civilian labor force.

The state”s jobless rate in July fell one-tenth of a point to 6.2% from the previous month, which was revised upwards from 6.2% to 6.3%. July”s unemployment rate was a full point-and-a-half below one year ago when unemployment stood at 7.7%.

The U.S. jobless rate was also 6.2% up one-tenth of a percent from the previous month.

While the reduction in the jobless figure is positive, the overall number of working Arkansans continues to slide.

In July, the number of employed Arkansans stood at 1,217,200 workers — down 7,200 from the previous month and 6,000 from one year ago. The number of unemployed stood at 81,000 — a decline of 700 from the previous month and 20,800 fewer than July 2013.

Kathy Deck, director for the UA Walton College Center for Business and Economic Research, said that while the falling unemployment rate will online casino garner headlines, the declining labor force should be of top concern.

“I also believe that the shrinking labor force is the primary story of what is happening in Arkansas,” Deck said.

She noted that on a seasonally adjusted basis, there are 69,228 fewer people either working or looking for work than there were in June 2008 (the labor force peak). There are 82,538 fewer jobs than at the peak (March 2008 using the household survey).

“What”s more is that that Arkansas labor force has been shrinking, while the U.S. labor force has been growing slightly,” Deck added. “And, finally, an interesting component is that the labor force is shrinking in every single metro area of the state, not just the rural areas.”

In the separate monthly survey of employers, nine sectors showed gains and two showed declines.

Mining/Logging 300

Construction 2,300

Manufacturing 2,300

Trade/Transportation 1,500

Information -500

Financial 600

Professional/Business 2,400

Education/Health 4,200

Hospitality 3,300

Other 800

Government -200

You can access the full report from the Department of Workforce Services here.