Arkansas jobless rate at 3.6% in February, jobless numbers rise

The number of unemployed in Arkansas rose almost 9% in February compared with February 2024, with net year-over-year job gains up 1.3%. The state’s jobless rate was 3.6% in February, above the 3.4% in February 2024.

The number of employed in Arkansas during February was an estimated 1,369,117, up 18,205 jobs, or 1.3%, compared with February 2024, according to the U.S. Bureau of Labor Statistics (BLS) report posted Friday (March 28). The February numbers are preliminary and subject to revision.

Arkansas’ labor force — the number of people eligible to work — in February was 1,420,665, up from 1,398,401 in February 2024. The state’s labor force participation rate in February was 58.4%, up from 58% in February 2024.

Arkansans without jobs in February totaled 51,548, up 8.5% compared with 47,489 in February 2024.

The biggest year-over-year sector gains were in education and health services (7,000 more jobs), professional and business services (4,000 more jobs), and trade, transportation and utilities (3,800 more jobs).

“Over the past year, payroll employment is up by 18,400 jobs – approximately 1.4%,” noted Dr. Michael Pakko, chief economist and state economic forecaster with the Arkansas Economic Development Institute. “The year-over-year figures show that February’s weakness in service-sector growth is not indicative of the trend. Over the past 12 months, service-providing sectors have accounted for 17,400 net new jobs, with the remaining 1,000 job-increase found in the goods-producing sectors.”

NATIONAL NUMBERS
Unemployment rates were higher in February in one state and stable in 49 states, according to the BLS report. Thirty states had jobless rate increases from a year earlier, one state had a decrease, and 19 states had little change. The national unemployment rate changed little over the month at 4.1% but was 0.2 percentage point higher than in February 2024.

Over the year, nonfarm payroll employment increased in 17 states and was essentially unchanged in 33 states. South Dakota had the lowest jobless rate in February at 1.9%. Nevada had the highest rate at 5.8%. In total, 18 states had unemployment rates lower than the U.S. rate of 4.1%, five states had higher rates, and 27 states had rates that were not appreciably different from that of the nation.

Over the year, nonfarm payroll employment rose in 17 states and was essentially unchanged in 33 states. The largest job gains occurred in Texas (up 182,300), New York (up 152,600), and Florida (up 128,300). The largest percentage increase occurred in Idaho (2.7%), followed by South Carolina and Utah (2% each).

ARKANSAS JOB SECTOR NUMBERS
Trade, transportation, and utilities
February 2025: 272,100
February 2024: 268,300
February marked an employment record for the sector.

Education and health services
February 2025: 218,300
February 2024: 211,300
February marked an employment record for the sector.

Government
February 2025: 212,600
February 2024: 211,600
Sector employment hit a peak of 224,100 in May 2010.

Manufacturing
February 2025: 163,300
February 2024: 161,900
Manufacturing, once the state’s largest jobs sector, posted record employment of 247,600 in February 1995.

Professional and business services
February 2025: 162,800
February 2024: 158,800
January marked an employment record for the sector with 163,500 jobs.

Leisure and hospitality
February 2025: 129,900
February 2024: 129,200
January marked an employment record for the sector with 130,400 jobs.

Financial activities
February 2025: 71,200
February 2024: 69,400
February marked an employment record for the sector.

Construction
February 2025: 65,900
February 2024: 66,200
August 2024 marked an employment record for the sector with 67,500 jobs.