Arkansas’ unemployment rate declined in June while the state’s workforce and employment levels reached new record highs, according to the latest monthly employment report released Tuesday by the Arkansas Department of Commerce in conjunction with the U.S. Bureau of Labor Statistics.
The state’s seasonally adjusted unemployment rate fell one-tenth of a percentage point to 4.1% in June, down from 4.2% in May.
Nationally, the U.S. unemployment rate also declined one-tenth of a percentage point during the same period, falling to 4.2%.
Arkansas Workforce Continues to Grow
Arkansas continued adding workers to its labor force during June, reflecting continued confidence in the state’s job market.
According to the report:
Arkansas’ civilian labor force increased by 1,919 people during June.
Employment rose by 2,830 workers.
Both the labor force and total employment reached new record highs.
Arkansas’ labor force participation rate increased to 59.2%.
Compared with June 2025, Arkansas now has 23,603 more people employed than one year ago.
State officials noted that while the number of unemployed workers and the unemployment rate increased slightly over the past year, those increases are largely the result of continued growth in Arkansas’ labor force and working-age population as more people entered the job market seeking employment.
The state’s labor force participation rate also increased seven-tenths of a percentage point compared with one year earlier.
Seasonal Job Changes Expected in June
Arkansas experienced a seasonal decline in total nonfarm payroll jobs between May and June, a trend commonly seen each summer when schools dismiss for the academic break.
Nonfarm payroll employment declined by 5,800 jobs during the month.
The largest decreases occurred in:
Government: down 5,900 jobs
Private Education and Health Services: down 3,000 jobs
Officials attributed much of those declines to the beginning of summer vacation for schools and educational institutions.
Meanwhile, seasonal hiring boosted employment in other sectors.
Industries posting gains included:
Construction: up 1,400 jobs
Leisure and Hospitality: up 1,200 jobs
Arkansas Adds 10,000 Jobs Over the Year
Despite the normal seasonal slowdown, Arkansas’ long-term employment picture remained positive.
Compared with June 2025, Arkansas added 10,000 nonfarm payroll jobs statewide.
The strongest annual gains occurred in:
Leisure and Hospitality: +3,900
Trade, Transportation and Utilities: +3,600
Private Education and Health Services: +2,400
Professional and Business Services: +2,300
Two major employment sectors posted year-over-year declines:
Financial Activities: -1,400
Government: -1,200
Northwest Arkansas Earns National Recognition
The report also highlighted continued economic strength in Northwest Arkansas.
The Fayetteville-Springdale-Rogers Metropolitan Statistical Area ranked as the third-fastest-growing metropolitan area in the United States for year-over-year nonfarm payroll job growth.
Employment in the region increased 2.9 percent compared with June 2025, placing Northwest Arkansas among the nation’s top-performing job markets.
Positive Outlook
The June employment report indicates Arkansas continues to maintain a stable labor market despite seasonal employment fluctuations.
Record employment levels, continued labor force growth and strong annual job gains suggest employers continue hiring while more Arkansans are entering or re-entering the workforce.
The combination of falling unemployment, increasing labor force participation and nationally recognized job growth in Northwest Arkansas points to continued economic momentum heading into the second half of 2026.
