The latest report on state employment suggests that Arkansas labor markets . The unemployment rate remained at 4.7% and employment increased only slightly.
The components of the unemployment rate changed little from April to May. The number of unemployed was essentially unchanged (-43) and the number of employed was up by 658—about half of the average monthly increase over the previous 12 months. The labor force increased by 615. None of these changes were sufficient to change the unemployment or labor force participation rates.
Payroll Employment
Nonfarm payroll employment increased by 1,600 from April to May, partly offsetting the (revised) 2,800 decline in the previous month (seasonally adjusted data). Employment declines in Construction, Wholesale Trade, and Other Services were offset by gains in other sectors, particularly Leisure & Hospitality Services. The surge in Leisure & Hospitality employment (+2,300) reversed a sharp decline in April (-2,000), revealing that the April contraction was likely a seasonal anomaly. Other sectors showing notable gains were Nondurables Manufacturing and Transportation & Utilities.
Employment in four sectors—Construction, Wholesale Trade, Information Services, and Other Services—have shown year-over year declines, while all other sectors show increases from May 2024. Education & Health Services has displayed the largest gains, with notable increases in Retail Trade, Leisure and Hospitality Services, Financial Services, and Professional & Business Services. In the latter category, gains in Management of Companies & Enterprises were offset by declining employment in Administration & Support services, with the net gain coming from Professional, Scientific & Technical subsector.
From May 2024 through May 2025, we’ve seen a total increase of 18,300 jobs—a gain of approximately 1.3%. Over the same period, U.S. nonfarm payrolls expanded by 1.1%.
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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.