Arkansas Unemployment Rate rises slightly to 4.2% in December

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The Arkansas Department of Commerce, in partnership with the U.S. Bureau of Labor Statistics, announced that Arkansas’ seasonally adjusted unemployment rate increased slightly in December. The rate rose one-tenth of a percentage point, from 4.1% in November to 4.2% in December. Nationally, the United States unemployment rate declined one-tenth of a percentage point to 4.4% over the same period.

Despite the modest uptick in the unemployment rate, Arkansas’s labor force reached record highs, reflecting continued engagement from job seekers across the state.

Civilian Labor Force Reaches Record Levels

Arkansas’ civilian labor force grew by 5,162 in December, reaching a record 1,444,246 individuals. Employment also increased by 3,541, setting a new high. The number of unemployed Arkansans actively seeking work rose by 1,621, contributing to the slight increase in the unemployment rate.

Increased labor force activity pushed the state’s labor force participation rate up to 59.0% in December.

When compared to December 2024, Arkansas recorded 16,467 more employed individuals and 10,537 more unemployed residents actively looking for work. Over the year, the unemployment rate increased by six-tenths of a percentage point, while the labor force participation rate rose by seven-tenths of a percentage point, signaling stronger workforce engagement statewide.

Nonfarm Payroll Jobs Continue to Grow

Arkansas’ nonfarm payroll employment increased by 1,400 jobs in December, bringing the total to 1,399,400. The Trade-Transportation-Utilities sector experienced the largest monthly gain, adding 2,200 jobs. Most of this growth occurred in Retail Trade (+1,600), driven by seasonal hiring during the holiday shopping season. Five additional major industry sectors also reported modest job gains during the month.

On an annual basis, nonfarm payroll jobs in Arkansas rose by 16,200 compared to December 2024. Notable growth was seen in Leisure and Hospitality (+6,500), Private Education and Health Services (+5,900), Trade-Transportation-Utilities (+3,700), Professional and Business Services (+2,900), and Manufacturing (+1,800). Construction experienced the largest year-over-year decline, shedding 2,200 jobs.

Overall, while Arkansas saw a slight increase in its unemployment rate in December, continued job growth and record labor force participation underscore ongoing economic activity and workforce engagement across the state.