Arkansas’s unemployment rate increases to 3.9% in September

Arkansas Department of Commerce

Arkansas Department of Commerce, in partnership with the U.S. Bureau of Labor Statistics, announced today that Arkansas’ seasonally adjusted unemployment rate rose slightly in September. The rate increased one-tenth of a percentage point, moving from 3.8% in August to 3.9% in September. Nationally, the United States saw a similar uptick, with the jobless rate rising to 4.4%, also up one-tenth of a percentage point.

Civilian Labor Force Continues to Expand

Arkansas’s civilian labor force experienced notable growth in September, increasing by 3,437 individuals. This includes 1,546 additional employed Arkansans and 1,891 more unemployed residents actively seeking work. While the rise in unemployment contributed to the higher jobless rate, the expanded labor force helped push the labor force participation rate to 58.5%, up slightly from August.

Both the number of employed residents and the overall labor force remain at record-high levels for the state.

Compared to September 2024:

• Employment has increased by 9,049 Arkansans.

• The number of unemployed individuals has risen by 6,047, leading to a year-over-year unemployment rate increase of four-tenths of a percentage point.

Nonfarm Payroll Employment Reaches New Record High

Arkansas’ nonfarm payroll employment saw strong gains in September, rising by 16,000 jobs to reach a record 1,393,300 positions statewide. Much of this growth was seasonal, driven by the start of the 2025–2026 school year.

Key highlights include:

• Government employment grew by 13,100 jobs, driven entirely by increases in educational services:

  • Local Government–Educational Services: +9,200

  • State Government–Educational Services: +4,600

• Private Education and Health Services grew by 2,400 jobs, including 1,700 in private educational services.

Year-Over-Year Growth Across Multiple Industries

Over the past year, Arkansas has added 22,700 jobs statewide. The largest annual gains occurred in:

• Private Education & Health Services: +8,800

• Trade, Transportation & Utilities: +4,900

• Leisure & Hospitality: +4,700

• Professional & Business Services: +3,500

• Manufacturing: +2,200

These increases reflect ongoing economic expansion across both service and goods-producing sectors.