Arkansas unemployment rate rises slightly in August

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The Arkansas Department of Commerce, in partnership with the U.S. Bureau of Labor Statistics, reported today that the state’s seasonally adjusted unemployment rate increased to 3.8% in August, up one-tenth of a percentage point from July’s 3.7%. The national unemployment rate also ticked upward by the same margin, reaching 4.3%.

Civilian Labor Force Trends

Arkansas’ civilian labor force expanded by 2,480 people in August, reflecting 1,683 additional employed residents and 797 more unemployed Arkansans actively seeking work. While this modest increase pushed the jobless rate slightly higher, the state’s labor force participation rate held steady at 58.4%.

Compared with August 2024, Arkansas shows overall labor force growth. Employment increased by 8,665 over the past year, while the number of unemployed grew by 4,889, contributing to a three-tenths percentage point rise in the unemployment rate. The participation rate also inched up by one-tenth of a point year over year.

Nonfarm Payroll Job Gains

Arkansas saw an increase of 4,900 nonfarm payroll jobs in August, with much of the growth tied to seasonal hiring related to the start of the 2025–2026 school year. Government employment led the way, adding 3,700 jobs, most notably in local government-educational services (+2,900).

The Private Education and Health Services sector grew by 1,500 positions, split between private educational services (+900) and health care and social assistance (+600).

On a year-over-year basis, Arkansas added 21,700 jobs compared to August 2024. The strongest gains occurred in:

• Private Education and Health Services (+8,700)

• Leisure and Hospitality (+5,200)

• Trade, Transportation, and Utilities (+4,100)

• Manufacturing (+2,700)

The most notable decline was in Construction, which lost 1,900 jobs over the year.

Outlook

While Arkansas’ unemployment rate saw a slight uptick in August, the broader labor market continues to show resilience with consistent job growth across several major sectors. State officials note that steady increases in labor force participation and year-over-year employment gains reflect an economy that is expanding despite short-term fluctuations.