The state’s unemployment rate continued climbing in December, rising one-tenth of a percentage point to 4.2%, the Arkansas Department of Commerce reported Tuesday.
The U.S. unemployment rate in December decreased by two-tenths of a percentage point from November, falling to 4.2%.
Arkansas’ jobless rate has been edging higher since August, when it was 3.8%.
In December, the state’s civilian labor force increased by 5,162 to a record 1.444 million. Employment rose by 3,541 to 1.383 million, also a record. The number of unemployed Arkansans increased by 1,621. The labor force participation rate rose by two-tenths of a percentage point to 59%.
Compared with December 2024, there were 16,467 more people employed in the state. The unemployment rate is up six-tenths of a percentage point. Arkansas’ labor force participation rate is also up seven-tenths of a percentage point on an annual basis.
On a monthly basis, nonfarm payroll jobs rose by 1,400 in December. The largest increase occurred in trade, transportation and utilities (+2,200), mostly because of gains in retail trade (+1,600) related to seasonal hiring for the holiday shopping season. Five other major industry sectors posted modest monthly gains.
Compared with December 2024, Arkansas’ nonfarm payroll jobs increased by 16,200. Expansions were reported in leisure and hospitality (+6,500), private education and health services (+5,900), trade, transportation and utilities (+3,700), professional and business services (+2,900), and manufacturing (+1,800). The largest annual decline was in construction (-2,200).
Other sectors and their changes from December 2024:
- Mining & logging +200
- Information -500
- Government -600
- Other services -700
- Financial activities -800
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