The June report on state-level employment and unemployment was unambiguous: Arkansas labor markets continue to show strength. Unemployment was down, with employment and labor force participation rising.
Arkansas unemployment rate declined by 0.1 percentage points in June, falling to 3.3%. If calculated with more precision the rate declined by only .04 percentage points, with the 0.1 pp measured to the nearest tenth. Nevertheless, the slight decline in Arkansas along with an increase in the U.S. rate for June means that Arkansas’ unemployment rate is now statistically significantly lower than the national average.
The underlying data from the household survey were all strong. The number of unemployed declined by 422, bringing the cumulative decline over the first half of 2024 to 4,221. The number of employed rose sharply, up 5,628. Household employment growth has accelerated in the second quarter of 2024, and over the first six months of the year employment has increased by 15,843. The increase in employment in June drove another increase in the labor force, up 5,206 for the month.
The acceleration in household employment and labor force growth have driven Arkansas’ labor force participation rate up by 0.3 percentage points over the past three months. It now stands at 57.7%, nearly equal to the rate at the beginning of 2020.
Payroll Employment
Nonfarm payroll employment grew by 8,700 jobs in June, an increase of 0.6% (seasonally adjusted). The increase was among the highest percentage increases in the nation (essentially tied with New Hampshire and New Mexico). Increases were particularly prominent in Professional & Business Services and Education & Health Services (particularly health care). Gains were also registered in Construction, Nondurables Manufacturing, and many service-providing sectors. Without seasonal adjustment, Leisure & Hospitality services increased for the month, but after accounting for seasonality, the data indicate less growth than is typically the case during June.
With the June increases, employment is up by 26,800 over the past twelve months–a percentage increase of 2.0%. Employment growth for the U.S. has been 1.7% over the same period.
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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.