Arkansas job market holds steady as unemployment rate remains at 3.7%
- Central Arkansas Planning & Development
- Aug 26
- 2 min read

The Arkansas Department of Commerce, in partnership with the U.S. Bureau of Labor Statistics, announced that Arkansas’ seasonally adjusted unemployment rate remained unchanged at 3.7% in July. By comparison, the national unemployment rate inched upward, rising from 4.1% in June to 4.2% in July.
Civilian Labor Force Trends
Arkansas’ civilian labor force grew by 903 individuals in July, with slight increases in both employment and unemployment. The state continues to maintain record-high levels of employment and civilian labor force participation. Both the unemployment rate and labor force participation rate remained steady between June and July.
Over the past year, Arkansas has seen continued labor force growth. Compared to July 2024, employment has increased by 8,555, while the number of unemployed residents actively seeking work rose by 4,750. This contributed to a year-over-year unemployment rate increase of three-tenths of a percentage point.
Nonfarm Payroll Job Changes
Arkansas’ nonfarm payroll jobs dropped by 8,700 in July, a decline largely attributed to the summer break at schools. Government jobs experienced the most significant decreases, falling by 10,900, with the largest reductions in local government educational services (-9,600) and state government educational services (-1,500).
Despite those losses, six major industry sectors posted gains. Among the largest increases were:
Leisure and Hospitality: +900 jobs
Construction: +800 jobs
Financial Activities: +400 jobs
On a year-over-year basis, Arkansas’ nonfarm payroll employment remains strong, adding 26,100 jobs since July 2024. Key areas of growth include:
Private Education and Health Services: +12,000 jobs
Leisure and Hospitality: +6,000 jobs
Trade, Transportation, and Utilities: +4,600 jobs
Professional and Business Services: +3,200 jobs
Manufacturing: +2,400 jobs
Outlook
While seasonal factors such as school breaks contributed to short-term payroll declines, Arkansas’ job market continues to show long-term strength. With record-high employment and sustained labor force growth, the state remains well-positioned despite national economic shifts.