The Arkansas Division of Workforce Services released new data on household employment and unemployment today, showing that the state’s unemployment rate rose 0.1 percentage point in September, rising to 3.9%. The U.S. unemployment rate had previously been reported as rising from 4.3% to 4.4% in September. The federal government shutdown has delayed many data releases, even cancelling some. The new data for September was collected prior to the government shutdown, but was delayed in publication until this week. The Bureau of Labor Statistics is not scheduled to announce state-level employment and unemployment data until Thursday (December 11).
Underlying the increase in the unemployment rate was a surge in the number of unemployed, up by 1,891. This was the largest monthly increase since the spring of 2023, and adds to the increasing trend in unemployment that has generally prevailed since the spring of 2024. The number of employed Arkansans was also higher in September, increasing by 1,546. As a result, the labor force rose by 3.437.
With the increase in the labor force, Arkansas’ labor force participation rate ticked higher, reaching 58.5% in September.
Note: As is the usual practice, the data from the Arkansas Division of Workforce Services included only not-seasonally adjusted figures for nonfarm payroll employment. Many of the monthly changes for September were attributable to seasonal factors, with schools starting back up in the fall (increasing Education and Government employment) and the end of the summer travel season (decreasing Leisure & Hospitality employment). We will report on the seasonally adjusted data when they are released by the BLS later this week.