Arkansas nonfarm jobs hit new record in December, jobless numbers up 21%

Arkansas’ nonfarm jobs again set a record in December, rising 1.13% compared with December 2024. Job gains were driven by an almost 5% boost to tourism industry jobs, and an almost 3% rise in Education and Health Services jobs. However, the number of jobless rose 21%.

The state’s jobless rate in December was 4.2%, up from 3.6% in December 2024, according to the U.S. Bureau of Labor Statistics report posted Tuesday (Jan. 27). The U.S. jobless rate in December was 4.4%. The December numbers are preliminary and subject to revision.

Total nonfarm employment – seasonally adjusted – was an estimated 1,392,900 in December, up 15,700 jobs, or 1.13%, compared with 1,377,200 in December 2024, according to BLS numbers. The number of unemployed was 60,987, up 21% compared with December 2024. The December number of unemployed was the first time the number was above 60,000 since April 2021.

The state’s civilian labor force was an estimated 1,444,246, up 1.9% from the 1,417,242 in December 2024. The labor force participation rate was 59% in December, up from 56.5% from December 2024.

The biggest year-over-year sector gains with nonfarm employment were in Leisure and Hospitality (6,100 more jobs, or up 4.7%), Education and Health Services (6,000 more jobs, up 2.8%), and Trade, Transportation and Utilities (3,900 more jobs).

ARKANSAS JOB SECTOR NUMBERS
(nonfarm employment, seasonally adjusted)
Trade, Transportation, and Utilities
December 2025: 274,600
December 2024: 270,700
The sector set a record of 275,300 in September 2025.

Education and Health Services
December 2025: 223,500
December 2024: 217,500
December set a new record for the sector.

Government
December 2025: 211,700
December 2024: 212,200
The sector set a record of 224,100 in May 2010.

Manufacturing
December 2025: 165,300
December 2024: 163,500
The sector set a record of 247,600 in February 1995.

Professional and Business Services
December 2025: 164,300
December 2024: 161,900
December set a new record for the sector.

Leisure and Hospitality
December 2025: 136,600
December 2024: 130,500
December set a new record for the sector.

Financial Activities
December 2025: 69,900
December 2024: 70,600
The sector set a record of 71,300 in March 2025.

Construction
December 2025: 65,000
December 2024: 67,300
The sector set a record of 67,500 in August 2024.

NATIONAL NUMBERS
Unemployment rates were higher in December in 6 states and stable in 44 states, according to the BLS report. Also, 21 states had jobless rate increases from a year earlier, 8 states had decreases, and 21 states had little change.

Hawaii and South Dakota had the lowest jobless rates in December at 2.2% each. The District of Columbia had the highest unemployment rate at 6.7%. The next highest rates were in California and New Jersey at 5.5% and 5.4%, respectively. In total, 19 states had unemployment rates lower than the U.S. figure of 4.4%, 5 states had higher rates, and 26 states had rates that were not appreciably different from that of the nation.

Over the year, nonfarm payroll employment increased in 8 states, decreased in the District of Columbia, and was essentially unchanged in 42 states. The largest job gains occurred in Texas (+132,500), North Carolina (+80,700), and Pennsylvania (+76,600). The largest percentage increases occurred in Missouri (1.8%), North Carolina (1.6%), and South Carolina (1.4%).