In the final month of 2024 the Arkansas unemployment rate crept slightly higher, from 3.3% to 3.4%, while both household and payroll employment continued to expand. The national unemployment rate edged lower in December to 4.1%, contributing to closing the gap between rates for Arkansas and the U.S. Nevertheless, Arkansas’ unemployment rate remains significantly lower than the national average.
The number of unemployed increased by 1,057. This was the third monthly increase, with the cumulative increase totaling nearly 2,000 (+1,897). Although the monthly pace of employment gains has slowed somewhat in the past two months, total household employment was up by 1,487 with a three-month increase of 5.663. With increases in both employed and unemployed, the Arkansas labor force expanded by 2,554 in December and by 7,560 over the past three months. Compared to a year earlier, employment was up by 31,598 (2.6%) and the number unemployed down by 3,028.
The expanding labor force pushed the labor force participation rate higher over the course of 2024. From December 2023 to December 2024, Arkansas’ participation rate increased from 57.5% to 58.2%—exceeding the pre-pandemic rate. Over the same period, the U.S. participation rate was unchanged at 62.5%.
Payroll Employment
Nonfarm payroll employment expanded by 1.300 jobs in December and was up 24,600 from the previous year (seasonally adjusted data). The monthly increase was dominated by surge in employment in Professional & Business services. Most of that increase was in the category of Administrative & Support Services. Leisure & Hospitality Services also showed a strong gain, continuing to recover from a sharp decline over the summer months. Education and Health Services showed an unusual monthly decline, with both the private education and health care categories contracting.
Over the past 12 months, payrolls have expanded by 24,600—an increase of 1.8%. The most significant growth sector has been Education & Health Services, with strong gains in Professional & Business Services as well.
With the first-published data for 2024 now complete, the next state-level employment report will incorporate annual revisions. The annual averages for unemployment rate data will be released on March 5, 2025, and the fully revised household and payroll data will be released on March 17, 2025. Stay tuned!
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Seasonally adjusted data for Arkansas nonfarm payroll employment, reported in a format consistent with the monthly news release from the Arkansas Division of Workforce Services, can be found here: Table-Seasonally Adjusted NFPE.