The latest data on state-level employment and unemployment suggest an emerging downtrend in Arkansas unemployment, along with continued steady employment growth.
In the household survey data the unemployment rate ticked down one tenth of a percent from 4.3% in April to 4.2% in May. The national unemployment rate held steady at 4.3% for the month. Having increased through most of 2025, the Arkansas unemployment rate has come down slightly to now be only 0.2 percentage points higher than a year ago.
In the Arkansas data, the number of unemployed declined for a fourth consecutive month, falling by 1,285 in May, and over 3,000 since January. The number of employed was also up in May, increasing by 2,452. As a result, the labor force expanded by 1,167. Compared to May of 2025, Arkansas employment is is up by 21,532, while unemployment is higher by 3,942.
Payroll Employment
Nonfarm payroll employment increased by 600 in May, and was revised up by 800 in the data for April (seasonally adjusted data).
Professional & Business Services showed strong growth, with contributions from both the Professional, Scientific, & Technical and Administrative & Support categories showing increases. Wholesale Trade and Durable Goods Manufacturing also showed monthly increases. On the other hand, employment in Nondurables Manufacturing was down in May, along with Education & Health Services (representing an unexpected stalling of trend growth).
Over the past 12 months, payroll employment has increased by less than 6,000 jobs, amounting to a growth rate of 0.4%. Over the same period, the growth rate of U.S. employment has been approximately 0.3%.
With the household survey showing an annual increase of over 21,000 employed and the payroll survey indicating an increase of less than 6,000 jobs, the two elements of the monthly employment report are tending to diverge. This is not unusual, but we would typically expect the trends to realign over time and with revisions to the data. Although the household survey might be overstating growth or the payroll survey understating it, both measures indicate ongoing positive growth.
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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.