Arkansas Nonfarm Jobs Reach Record High in December; Unemployment Rises 21%
Arkansas has witnessed a remarkable surge in nonfarm jobs, reaching a record high in December. This notable achievement reflects a 1.13% increase compared to the previous year, driven primarily by significant gains in the tourism sector and education and health services.
Arkansas Nonfarm Jobs Data
According to the U.S. Bureau of Labor Statistics, the total nonfarm employment in Arkansas for December was estimated at 1,392,900. This figure represents an increase of 15,700 jobs since December 2024. However, alongside this growth, the state’s unemployment rate rose by 21%, reaching 4.2%.
Key Job Sector Increases
The growth in nonfarm employment was predominantly fueled by the following sectors:
- Leisure and Hospitality: An increase of 6,100 jobs (up 4.7%)
- Education and Health Services: An increase of 6,000 jobs (up 2.8%)
- Trade, Transportation, and Utilities: An increase of 3,900 jobs
Unemployment Statistics
The rise in unemployment has been significant, with 60,987 people reported as jobless in December. This marks a turnaround, as it is the first time these numbers have exceeded 60,000 since April 2021.
Comparatively, the national unemployment rate stood at 4.4% during the same period, indicating that Arkansas’s rate lingers slightly below the national average.
Labor Force Insights
Arkansas’s civilian labor force also grew, estimated at 1,444,246, which is a 1.9% increase from the previous year. The labor force participation rate improved to 59%, up from 56.5% in December 2024.
Sector Performance Overview
| Sector | December 2025 | December 2024 |
|---|---|---|
| Trade, Transportation, and Utilities | 274,600 | 270,700 |
| Education and Health Services | 223,500 | 217,500 |
| Government | 211,700 | 212,200 |
| Manufacturing | 165,300 | 163,500 |
| Professional and Business Services | 164,300 | 161,900 |
| Leisure and Hospitality | 136,600 | 130,500 |
| Financial Activities | 69,900 | 70,600 |
| Construction | 65,000 | 67,300 |
National Context
On a national scale, six states saw higher unemployment rates in December. While 21 states experienced jobless rate increases year-over-year, 8 states noted declines. The lowest unemployment rates were recorded in Hawaii and South Dakota at 2.2%, contrasting sharply with the highest rate in the District of Columbia at 6.7%.
Despite these challenges, Arkansas continues to set records in job creation across various sectors. The state’s economic resilience will be crucial as it navigates the complexities of post-pandemic recovery.
