Arkansas’ unemployment rate increased to 4.2% in December

Jan. 27  the Arkansas Department of Commerce, in conjunction with the Bureau of Labor Statistics, announced Arkansas’ seasonally adjusted unemployment rate rose one-tenth of a percentage point, from 4.1% in November to 4.2% in December. At 4.4% in December, the United States’ jobless rate declined one-tenth of a percentage point since November.

Arkansas Civilian Labor Force Summary:– The size of Arkansas’ civilian labor force increased by 5,162 in December to reach a record high of
1,444,246. Employment rose by 3,541, also reaching record high levels. The number of unemployed
Arkansans actively seeking work is up 1,621, pushing up the state’s unemployment rate. Increased labor
force activity caused growth in the labor force participation rate, which rose to 59.0% in December.

-Compared to December 2024, there are 16,467 more employed and 10,537 more unemployed
Arkansans actively seeking work. The unemployment rate is up six-tenths of a percentage point over the
year, while the labor force participation rate is up seven-tenths of a percentage point.

Arkansas Nonfarm Payroll Job Summary:

-Arkansas’ nonfarm payroll jobs rose 1,400 in December to total 1,399,400. The largest increase occurred
in Trade-Transportation-Utilities (+2,200). Most of the gains were in Retail Trade (+1,600), related to
seasonal hiring for the holiday shopping season. Five other major industry sectors posted modest
monthly gains.

-Compared to December 2024, nonfarm payroll jobs in the state are up 16,200. Sizable expansions were
reported 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). The largest annual decline was in Construction (-2,200).

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