Arkansas nonfarm jobs hit new record, but jobless numbers continue to rise

The estimated number of Arkansas’ nonfarm jobs hit a new record in January, but the number of unemployed rose more than 17%, and the state’s jobless rate rose to 4.4%, a level not seen since May 2021. Job gains were driven by the retail and health care sectors.

The state’s jobless rate in January was 4.4%, up from 3.8% in January 2024, according to the U.S. Bureau of Labor Statistics report posted Wednesday (April 8). The U.S. jobless rate in January was 4.3%. The January numbers are preliminary and subject to revision.

Total nonfarm employment – seasonally adjusted – was an estimated 1,346,200 in January, up 11,600 jobs, or 0.87%, compared with 1,334,600 in January 2024, according to the BLS numbers. The number of unemployed was 63,636, up 17.6% compared with January 2024. The January number of unemployed was the highest since February 2021.

The state’s civilian labor force was an estimated 1,451,310, up 1.9% from the 1,424,605 in January 2024. The labor force participation rate was 59.1% in January, up from 58.4% in January 2024.

The biggest year-over-year sector gains with nonfarm employment were in Trade, Transportation and Utilities (5,800 more jobs), Education and Health Services (4,100 more jobs), and Leisure and Hospitality (3,300 more jobs).

ARKANSAS JOB SECTOR NUMBERS
(nonfarm employment, seasonally adjusted)
Trade, Transportation, and Utilities
January 2025: 275,500
January 2024: 269,700
January employment marked a new record for the sector.

Education and Health Services
January 2025: 212,100
January 2024: 208,000
January employment marked a new record for the sector.

Government
January 2025: 204,300
January 2024: 206,300
The sector set a record of 224,100 in May 2010.

Manufacturing
January 2025: 158,900
January 2024: 160,800
The sector set a record of 247,600 in February 1995.

Professional and Business Services
January 2025: 165,500
January 2024: 162,800
January employment marked a new record for the sector.

Leisure and Hospitality
January 2025: 134,200
January 2024: 130,900
The sector posted record employment of 134,600 in December 2025.

Financial Activities
January 2025: 59,700
January 2024: 59,800
The sector set a record of 60,200 in May 2025.

Construction
January 2025: 66,000
January 2024: 66,900
The sector set a record of 67,600 in August 2024.

NATIONAL NUMBERS
Unemployment rates were higher in January in 1 state and stable in 49 states and the District of Columbia, and 14 states and the District had jobless rate increases from a year earlier, 2 states had decreases, and 34 states had little change. The national unemployment rate, 4.3%, changed little over the month but was 0.3 percentage point higher than in January 2025.

In January 2026, nonfarm payroll employment increased in 5 states, decreased in the District of Columbia, and was essentially unchanged in 45 states. Over the year, nonfarm payroll employment increased in 4 states, decreased in Maryland and the District, and was essentially unchanged in 45 states.

Hawaii and South Dakota had the lowest jobless rates in January at 2.2% each. The District of Columbia had the highest unemployment rate at 6.7%. The next highest rates were in California and Delaware at 5.4% each. In total, 20 states had unemployment rates lower than the U.S. figure of 4.3%, 7 states and the District had higher rates, and 23 states had rates that were not appreciably different from that of the nation.