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State Unemployment Rate Climbs to 3.9% in September

2 min read

The state’s unemployment rate climbed higher in September, rising one-tenth of a percentage point to 3.9%, the Arkansas Department of Commerce reported Tuesday.

The U.S. unemployment rate in September also increased by one-tenth of a percentage point, rising to 4.4%.

Publication of September data was delayed by more than six weeks because of the federal government shutdown. Employment data for October will not be published.

Arkansas plans to release November employment data on Jan. 7.

In September, the state’s civilian labor force increased by 3,437 to 1.43 million, remaining at record levels. There were 1,891 more unemployed people, but growth in the workforce pushed the labor force participation rate higher by one-tenth of a percentage point to 58.4%.

Compared to September 2024, there were 9,049 more people employed in the state. The unemployment rate is up four-tenths of a percentage point. Arkansas’ labor force participation rate is up one-tenth of a percentage point on an annual basis.

On a monthly basis, nonfarm payroll jobs rose by 16,000 in September. Gains were mostly seasonal and related to the start of the new school year. Government added 13,100 jobs, all in the local government-educational services (+9,200) and state government-educational services (+4,600) categories. Private education and health services rose by 2,400, with 1,700 more jobs in private educational services.

Compared to September 2024, Arkansas’ nonfarm payroll jobs increased by 22,700. The largest increase was in private education and health services, which added 8,800 jobs. Other notable gains occurred in trade, transportation and utilities (+4,900), leisure and hospitality (+4,700), professional and business services (+3,500), and manufacturing (+2,200).

Other sectors and their changes from September 2024:

  • Government +700
  • Financial activities 600
  • Mining & logging – flat
  • Other services -200
  • Information -500
  • Construction -2,000
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