Data for September indicate another unambiguously strong month for labor markets in Arkansas, particularly against the backdrop of ongoing sluggish performance of employment growth nationwide.
The unemployment rate remained at 3.9%, down 0.3 percentage points from a year ago. The U.S. unemployment rate was previously reported to have ticked up by 0.1 percentage points to 4.2% in September.
The underlying data from the household survey showed the number of unemployed declining for an eighth consecutive month, declining in September by 734. The number of employed was up for the ninth consecutive month, rising by 1,902 in September. Over the past twelve months, the household measure of employment has increased by 20,642 (approximately 1.1%).
The labor force expanded by 1,168, but not by enough to raise the labor force participation rate from 59.1%.
Payroll Employment
Arkansas nonfarm payroll employment increased by 2,900 in September after registering a 4,600 increase in August (seasonally adjusted data). Although the August figure was revised downward by 600 jobs, the two-month increase suggests an acceleration from the sluggish growth rates seen in previous months. On a year-over-year basis, Arkansas employment growth has been 0.9%, compared with growth for the U.S. of 0.3%.
The September increase in employment was particularly strong in the sectors that have been driving growth during the current expansion. Education & Health services was up by 1,200 jobs, Leisure & Hospitality rose by 700 jobs, and Professional & Business Services increased by 600 jobs. Over the past twelve months, these three super-sectors have accounted for nearly two-thirds of total job growth in Arkansas (63%).
Two Measures of Employment
With steadily rising trends, both measures of employment (from the household survey and from the payroll survey) reached new record highs in September. Although both are indicating persistent growth trends, the household survey has been showing more rapid growth than the payroll survey in recent months. Both series will be subject to revision in early 2027, which is likely to bring the two into closer alignment. Nevertheless, the solid growth in payroll employment over the past two months has been a reinforcing indicator of the strength shown by the household measure of employment.
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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.