The latest state-level report on employment and unemployment was unremarkable in most respects, but did hint at ongoing weakness in the state’s labor markets. The unemployment rate was unchanged from March, but at 3.7% it was 0.3 percentage points higher than a year ago. The unemployment rate for the U.S. was also unchanged at 4.2% for the month—and also up 0.3 percentage points from April 2024.
The gradual increase in Arkansas’ unemployment rate has been driven by persistent increases in the number of unemployed. Interrupted by only a slight decline in December, the number of unemployed has risen by 4,855 over the past 12 months. The number of employed increased by 1,406 in April, suggesting that the slight decline recorded for March was anomalous. As a result of the increases in both employed and unemployed, the labor force expanded by 1,519 for the month.
Payroll Employment
Nonfarm payroll employment declined by 1,200 from March to April (seasonally adjusted). Before seasonal adjustment, employment increased for the month, but in several categories the gains were smaller than typically expected for April. For example, not-seasonally adjusted employment in Leisure and Hospitality Services increased by 2,100 jobs. After adjusting for seasonality the change was a decline of 1,800.
More generally, the seasonally adjusted changes in payroll employment were mixed. In addition to Leisure & Hospitality Services, there was also a substantial decline in Nondurables Manufacturing. Other goods-producing sectors saw increases for the month, as did Professional & Business Services (exclusively in the category of Administrative and Support Services) and Education & Health Services.
Over the past 12 months, payroll employment has increased by 17,800—about 1.3%. Over the same period, U.S. payroll employment increased by 1.2%.
# # #
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.