Arkansas’ civilian labor force reached a record high in December as the state’s unemployment rate increased slightly, according to data released by the Arkansas Department of Commerce in conjunction with the Bureau of Labor Statistics.
The seasonally adjusted unemployment rate rose by one-tenth of a percentage point, increasing from 4.1 percent in November to 4.2 percent in December. Nationally, the United States unemployment rate declined to 4.4 percent.
Arkansas’ civilian labor force expanded by 5,162 in December to a record level of 1,444,246. Employment also rose by 3,541, reaching an all-time high. The number of unemployed Arkansans actively seeking work increased by 1,621, contributing to the modest increase in the unemployment rate.
Labor force participation continued to climb, rising to 59.0 percent in December as more residents entered or reentered the workforce.
Compared to December 2024, Arkansas now has 16,467 more employed residents and 10,537 more unemployed residents actively seeking work. The unemployment rate is up six-tenths of a percentage point year over year, while the labor force participation rate has increased by seven-tenths of a percentage point.
Nonfarm payroll employment also showed steady growth. Arkansas added 1,400 nonfarm payroll jobs in December, bringing total nonfarm employment to 1,399,400.
The largest monthly gain occurred in the Trade-Transportation-Utilities sector, which added 2,200 jobs. Retail Trade accounted for most of the increase, adding 1,600 jobs tied to seasonal holiday hiring. Five other major industry sectors reported modest gains.
Over the year, nonfarm payroll employment increased by 16,200 jobs statewide. The strongest growth occurred in Leisure and Hospitality (+6,500), Private Education and Health Services (+5,900), Trade-Transportation-Utilities (+3,700), Professional and Business Services (+2,900), and Manufacturing (+1,800). Construction experienced the largest annual decline, losing 2,200 jobs.
State officials say the data reflects strong workforce participation and continued economic stability heading into the new year.
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