Arkansas unemployment remained unchanged at 3.7% in May, marking the third consecutive month the state has held steady at that rate even as the broader economy continues to navigate post-pandemic labor dynamics. The Bureau of Labor Statistics data released Tuesday showed the state's jobless rate staying flat while the national unemployment rate also held at 4.2%.
The stability comes amid continued job growth, with Arkansas adding 3,400 nonfarm payroll positions in May to reach a record high of 1,388,500 jobs, according to the Arkansas Department of Commerce. Despite the unchanged unemployment rate, the state's employment picture showed mixed signals compared to the previous year.
Arkansas added approximately 13,000 jobs compared to May 2024, with employment rising 0.9% year-over-year1. The state's labor force expanded to 1,423,306 people, up 1.2% from the previous May, while the labor force participation rate increased slightly to 58.4%1.
However, the number of unemployed Arkansans actively seeking work rose to more than 52,000, representing a 9.9% increase from May 20241. This uptick in job seekers contributed to the unemployment rate climbing two-tenths of a percentage point compared to the 3.4% rate recorded in May 20242.
The biggest year-over-year employment gains occurred in Education and Health Services, which added 9,100 jobs and reached a record 221,000 positions in May1. Trade, Transportation and Utilities followed with 3,700 additional jobs, while Manufacturing contributed 2,100 new positions1.
According to Talk Business & Politics, several sectors hit employment records, including Education and Health Services and Leisure and Hospitality1. The state's labor force participation rate of 58.4% represents an improvement from 58.2% in May 20241.
The unchanged unemployment rate reflects Arkansas's labor market resilience as it continues to outperform the national average of 4.2%1. The state has maintained employment at record levels while absorbing new workers into its expanding labor force23.
Arkansas has now sustained unemployment below 4% for multiple consecutive months, with rates fluctuating between 3.6% and 3.7% throughout early 202542. The state's ability to maintain low unemployment while adding jobs suggests continued economic expansion despite broader national economic uncertainties.
