Arkansas jobless rate at 4.2% in May, up from 4% in May 2025

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by Talk Business & Politics staff ([email protected]) ago 13 views 

Job numbers were up less than 1% in Arkansas during May, with the number of unemployed up 7%, according to federal data posted Tuesday (June 23). The state’s jobless rate in May was 4.2%, up from 4% in May 2025, but down from 4.3% in April.

Estimated nonfarm payroll jobs in May totaled 1,345,300, up 5,900 jobs, or 0.4% compared with 1,339,400 in May 2025, according to the U.S. Bureau of Labor Statistics. Net new jobs were up 11,300 in January, up 8,700 in February, up 7,000 in March, and up 4,400 in April. The nonfarm jobs number set a record of 1,345,900 in January.

Dr. Michael Pakko, chief economist and state economic forecaster with the Arkansas Economic Development Institute at the University of Arkansas at Little Rock, said the May report suggests “an emerging downtrend in Arkansas unemployment, along with continued steady employment growth.”

“Over the past 12 months, payroll employment has increased by less than 6,000 jobs, amounting to a growth rate of 0.4%,” he noted in his analysis. “Over the same period, the growth rate of U.S. employment has been approximately 0.3%.”

The U.S. jobless rate in May was 4.3%, unchanged compared with May 2025. The May numbers are preliminary and subject to revision.

The state’s labor force in May was 1,455,735, up 1.8% from 1,430,261 in May 2025. The labor force participation rate was 59.1%, up from 58.5% in May 2025. The number of unemployed was 60,560, up 7% compared with May 2025.

The biggest year-over-year sector gains with nonfarm employment were in Professional and Business Services (3,000 more jobs), Leisure and Hospitality (2,900 more jobs), and Trade, Transportation, Utilities (2,100 more jobs). The government sector shed 2,000 jobs between May 2025 and May 2026, and the manufacturing sector had 1,100 fewer jobs.

ARKANSAS JOB SECTOR NUMBERS
(nonfarm employment, seasonally adjusted)
Trade, Transportation, and Utilities
May 2026: 273,600
May 2025: 271,100
The sector posted record jobs of 275,100 in December 2025.

Education and Health Services
May 2026: 212,200
May 2025: 209,900
April employment marked a new record for the sector with 212,700 jobs.

Government
May 2026: 204,600
May 2025: 206,600
The sector set a record of 220,100 in May 2010.

Professional and Business Services
May 2026: 167,200
May 2025: 164,200
May employment marked a new record for the sector.

Manufacturing
May 2026: 158,800
May 2025: 159,900
The sector set a record of 247,600 in February 1995.

Leisure and Hospitality
May 2026: 134,600
May 2025: 131,700
February employment of 135,100 marked a new record for the sector.

Financial Activities
May 2026: 59,900
May 2025: 60,200
The sector set a record of 60,200 in May 2025.

Construction
May 2026: 66,400
May 2025: 66,400
The sector set a record of 67,600 in August 2024.

NATIONAL NUMBERS
Unemployment rates were lower in May in 6 states, higher in 2 states, and stable in 42 states and the District of Columbia, according to the BLS report. Sixteen states had jobless rate increases from a year earlier, 6 states had decreases, and 28 states and the District had little change. The national unemployment rate of 4.3% was unchanged compared with May 2025.

In May, nonfarm payroll employment increased in 2 states and was essentially unchanged in 48 states and the District of Columbia. Over the year, nonfarm payroll employment increased in 2 states, decreased in 1 state and the District, and was essentially unchanged in 47 states.

South Dakota had the lowest jobless rate in May at 2.1%. The District of Columbia had the highest unemployment rate at 6.1%. The next highest rate was in California at 5.3%. In total, 18 states had unemployment rates lower than the U.S. figure of 4.3%, 7 states and the District had higher rates, and 25 states had rates that were not appreciably different from that of the nation.