Arkansas jobless rate holds at 3.7% in May, job numbers up 0.9%

Arkansas’ job trends in May were similar to April. An almost 10% rise in the number of jobless and a relative decline in the number of employed resulting in an overall unemployment rate of 3.7%, unchanged from April and up from 3.4% in May 2024.

May was the third consecutive month that the jobless rate held at 3.7%.

The number of employed in Arkansas during May was an estimated 1,371,087, up 13,386 jobs, or 0.9%, compared with May 2024, according to the U.S. Bureau of Labor Statistics (BLS) report posted Tuesday (June 24). The May numbers are preliminary and subject to revision.

Arkansas’ labor force, the number of people eligible to work, in May was 1,423,306, up 1.2% from 1,406,219 in May 2024. The state’s labor force participation rate in May was 58.4%, up from 58.2% in May 2024. Arkansans without jobs in May totaled 52,219, up 9.9% compared with 47,518 in May 2024.

The biggest year-over-year sector gains were in education and health services (9,100 more jobs); trade, transportation and utilities (3,700 more jobs); and manufacturing (2,100 more jobs).

NATIONAL NUMBERS
Unemployment rates were higher in May in three states, lower in two states, and stable in 45 states, according to the BLS report. Twenty-four states had jobless rate increases from a year earlier, four states had decreases, and 22 states had little change. The national unemployment rate was unchanged at 4.2% but was 0.2 percentage point higher than in May 2024.

South Dakota had the lowest jobless rate in May at 1.8%. The District of Columbia had the highest unemployment rate at 5.9%, followed by Nevada at 5.5%, and Michigan at 5.4%. In total, 21 states had unemployment rates lower than the U.S. figure of 4.2%, four states had higher rates, and 25 states had rates that were not appreciably different from that of the nation.

Over the year, nonfarm payroll employment increased in 18 states and was essentially unchanged in 32 states and the District of Columbia. The largest job gains occurred in Texas (up 213,300), Florida (up 148,700), and New York (up 100,400). The largest percentage increases occurred in South Carolina (2.7%), Idaho (2.6%), and Utah (2.4%).

ARKANSAS JOB SECTOR NUMBERS
Trade, transportation, and utilities
May 2025: 272,500
May 2024: 268,800
February first marked an employment record for the sector with 272,500 jobs.

Education and health services
May 2025: 221,000
May 2024: 211,900
May marked an employment record for the sector.

Government
May 2025: 212,700
May 2024: 211,900
Sector employment hit a peak of 224,100 in May 2010.

Manufacturing
May 2025: 164,100
May 2024: 162,000
Manufacturing, once the state’s largest jobs sector, posted record employment of 247,600 in February 1995.

Professional and business services
May 2025: 161,200
May 2024: 159,400
January marked an employment record for the sector with 163,500 jobs.

Leisure and hospitality
May 2025: 130,800
May 2024: 128,800
May marked an employment record for the sector.

Financial activities
May 2025: 71,300
May 2024: 69,500
March first marked an employment record for the sector with 71,300 jobs.

Construction
May 2025: 65,300
May 2024: 66,800
August 2024 marked an employment record for the sector with 67,500 jobs.