Arkansas labor productivity up 1.8% in 2025, hours worked up 0.9%

Labor productivity in Arkansas during 2025 rose 1.8%, with total labor compensation in the state up almost 6% for the year. Arkansas was among the 42 states that posted labor productivity gains in 2025, according to the U.S. Bureau of Labor Statistics (BLS).

The state’s 1.8% productivity gain in 2025 was below the 3.5% gain in 2024, above the 1.2% gain in 2023, and better than the 0.3% decline in 2022.

Arkansas’ productivity growth of 1.8% matched the national productivity growth. According the the BLS report posted Thursday (May 28), output increased in all 50 states and the District of Columbia, hours worked increased in 33 states, and the District of Columbia experienced the highest growth in labor productivity in 2025 at 5.2%.

Productivity, according to the BLS, is measured by the hours worked compared with the rate of output. A productivity gain occurs when output increases at a higher rate than hours worked.

“Each state’s annual contribution to national productivity growth is calculated by multiplying the state’s productivity growth rate by its average share of total current dollar national output,” noted the BLS report. “The economic size of each state influences its contribution to national and regional estimates. Representing about 14% of national output, California had the largest influence on national productivity growth. The state’s 4.2% increase in labor productivity in 2025 contributed to nearly one-third of the 1.8% increase at the national level.”

Labor productivity declined in Alaska, Idaho, Mississippi, Nebraska, Nevada, Oklahoma, West Virginia, and Wyoming.

Arkansas’ labor productivity as a contribution to the national productivity was 0.6% in 2025. The top five contributing states were California (13.7%), Texas (9.2%), New York (8.5%), Illinois (4.4%), and Pennsylvania (3.9%). Between 2007 and 2025, California, Texas, and New York, which have the largest economies, contributed the most to national productivity growth, nearly 40% of the 1.6% nationwide increase.

Following are the 2025 Arkansas productivity measures as reported by the BLS. All percentages are increases.
Labor productivity: 1.8%
Output: 2.8%
Hours worked: 0.9%
Unit labor costs: 3%
Labor compensation: 5.8%
Hourly compensation: 4.8%

Following are the “long run” (2007-2025) Arkansas productivity measures. All percentages are increases.
Labor productivity: 1.4%
Output: 1.9%
Hours worked: 0.5%
Unit labor costs: 2%
Labor compensation: 3.9%
Hourly compensation: 3.4%

Link here for the BLS report and associated tables.