The latest report on state-level employment and unemployment shows that Arkansas labor markets are continuing on a trend of low unemployment and job growth. The unemployment rate was unchanged at 3.3%, significantly lower than the 4.1% national unemployment rate.
The components of the unemployment rate all moved in a favorable direction in September: The number of unemployed was down by 944 and the number of employed was up 4,341. The net result was an increase in the labor force of 3,397. These changes were very close to driving the unemployment rate lower by one-tenth percent: If only 12 people were moved from the unemployed to the employed category, the unemployment rate would have been 3.2% after rounding.
Compared to a year earlier, the Arkansas unemployment rate is down 0.3%, with the number of employed up by 29,000 and the number unemployed down by 3,800.
Payroll Employment
Arkansas Nonfarm payroll employment increased by 400 jobs in September, although the estimate for the previous month was revised downward by 1,800 jobs (seasonally adjusted data). As a result, total employment in September remained slightly below the all-time high reached in June, but is still 18,500 higher than in September 2023.
Changes in employment by industry showed considerable variability. Employment in Construction was down, continuing a downward trend since this spring. Employment in manufacturing in Durables was also lower for the month, while nondurables were higher. Among the service-providing sectors, both Financial Services and Professional Business Services were lower, while Leisure & Hospitality Services was sharply higher. The 3,400-job increase in Leisure & Hospitality employment followed a weak August that saw L&H jobs decline by 1,800.
The year-over-year payroll employment growth of 18,500 jobs represents an increase of 1.4%. Over the same period, U.S. payroll employment has expanded at a rate of 1.6%. Compared to the pre-COVID-19 peak of February 2020, Arkansas employment has increased by 6.0%, while the comparable U.S. increase has been 4.5%.
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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.