Unemployment continues to inch upward in Arkansas, and Jefferson County remains one of the hardest-hit areas, according to new figures released by the Arkansas Department of Commerce and the U.S. Bureau of Labor Statistics.
Arkansas’ seasonally adjusted unemployment rate rose from 3.8% in August to 3.9% in September, tracking with the national trend. The U.S. unemployment rate also increased by one-tenth of a percentage point, reaching 4.4%.
Jefferson County’s jobless numbers continue to outpace both state and national averages. The county’s unemployment rate climbed to 6.3% in September, up from 4.4% a year earlier. Nearby counties fared better, with Pulaski County at 4.3%, Faulkner County at 3.7%, Lonoke County at 3.6% and Saline County at 3.4%.
Across Arkansas, several counties recorded even higher unemployment rates. Department of Commerce data show Desha County with the highest rate in the state at 7.2%, followed by Phillips County at 7%. Izard County, in north Arkansas, posted 6.9%, making it the third-highest.
Despite the statewide uptick, Arkansas’ labor force remains historically strong. The state’s civilian labor force reached a record high in September, increasing by 3,437 people. That total includes 1,546 newly employed residents and 1,891 additional individuals actively looking for work. The gain pushed Arkansas’ labor force participation rate to 58.5%.
Compared to September 2024, the state has 9,049 more employed residents and 6,047 more unemployed, raising the year-over-year unemployment rate by four-tenths of a percentage point.
Nonfarm payroll jobs also hit a new record, rising by 16,000 in September to 1,393,300. Much of the growth was tied to the start of the 2025–26 school year. Local Government–Educational Services added 9,200 jobs, and State Government–Educational Services grew by 4,600. Private Education and Health Services increased by 2,400, including 1,700 in Private Educational Services.
Over the past year, Arkansas added 22,700 nonfarm jobs, led by an 8,800-job increase in Private Education and Health Services. Other major gains occurred in Trade, Transportation, and Utilities (+4,900), Leisure and Hospitality (+4,700), Professional and Business Services (+3,500), and Manufacturing (+2,200).
State officials say that although job growth and labor force participation remain strong, rising unemployment in counties such as Jefferson, Desha and Phillips continues to be a key economic concern heading into 2026.
