Arkansas Unemployment Rises to 4.1 Percent as Labor Force Grows and Payroll Jobs Decline

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Arkansas’ unemployment rate rose to 4.1% in November, up from 3.9% in September, marking the state’s highest jobless rate since June 2021, according to data released by the Arkansas Department of Commerce and the Bureau of Labor Statistics.

The state’s civilian labor force increased to 1,439,250 in November, an increase of 8,633 people since September. The number of unemployed Arkansans rose by 4,999, while 3,634 of those were actively seeking work. Arkansas’ labor force participation rate also increased, climbing to 58.8%.

Compared with November 2024, Arkansas had 13,154 more employed residents and 8,887 additional unemployed people actively seeking work. Those gains pushed both the unemployment rate and the labor force participation rate up by five-tenths of a percentage point over the year.

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Nonfarm payroll employment in the state declined by 700 jobs in November. Professional and Business Services posted the largest monthly loss, down 1,400 jobs, with most of those losses coming from Administrative and Support Services, which fell by 1,200 positions.

Those declines were partially offset by gains in Trade, Transportation and Utilities, which added 2,500 jobs. Retail Trade accounted for most of that growth, adding 2,300 jobs as the holiday shopping season began.

Despite the monthly dip, Arkansas’ nonfarm payroll jobs were up 17,600 compared with November 2024. Leisure and Hospitality recorded the largest year-over-year increase, adding 6,700 jobs, followed by Private Education and Health Services with 4,900 and Trade, Transportation and Utilities with 4,700. Construction experienced the largest annual decline, losing 2,200 jobs over the year.

Nationally, the U.S. unemployment rate rose to 4.6% in November, up from 4.4% in September.