Arkansas Unemployment Rate Holds Steady at 3.7% in June

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Arkansas’ unemployment rate remained unchanged at 3.7% in June, holding steady for the fourth consecutive month, according to the Arkansas Department of Commerce and the U.S. Bureau of Labor Statistics. In contrast, the national unemployment rate saw a slight decline, dropping from 4.2% in May to 4.1% in June.

Labor Force at Record Highs

Arkansas’ civilian labor force continued its upward trend, reaching new record levels in both total participation and employment. The number of unemployed Arkansans actively seeking work rose slightly by 419 individuals. Despite this small increase, the overall unemployment rate remained stable, reflecting a growing workforce and steady job market conditions.

Compared to June 2024, the state has experienced significant growth in its labor force. Employment is up by 10,049, though the number of unemployed residents also increased by 4,886 over the year. This has resulted in a year-over-year rise of three-tenths of a percentage point in the state’s unemployment rate. Notably, the labor force participation rate rose by 0.2 percentage points, signaling greater engagement among Arkansas workers.

Payroll Job Fluctuations Reflect Seasonal Trends

Nonfarm payroll employment in Arkansas experienced a typical seasonal dip in June, with jobs decreasing by 3,600. The most significant drop came from the Government sector, which shed 7,200 jobs due to the onset of summer break in public schools and universities.

Despite these seasonal losses, gains were reported in key private sector industries. Leisure and Hospitality added 1,500 jobs, while Manufacturing grew by 1,300 jobs in June.

Year-over-year, Arkansas has added 24,900 nonfarm payroll jobs. The largest employment increases have been seen in:

• Private Education and Health Services (+12,200),

• Trade, Transportation, and Utilities (+5,200),

• Leisure and Hospitality (+4,400),

• Manufacturing (+2,500).

  
  

These gains reflect the continued strength of Arkansas' private sector and its ability to generate jobs across a range of industries.

Summary

While national employment trends show slight improvements, Arkansas has maintained a steady unemployment rate of 3.7% amid seasonal fluctuations. The continued growth in both the labor force and employment levels highlights a resilient state economy with positive long-term job growth, particularly in healthcare, manufacturing, and service industries.