Arkansas’ labor market strengthened in March as the state hit record employment levels alongside a modest decline in its unemployment rate to 4.3%, according to data from the Arkansas Department of Commerce and the U.S. Bureau of Labor Statistics. This marks a decrease of one-tenth of a percentage point from February and aligns with the national unemployment rate, which also dropped to 4.3%.
The state’s civilian labor force expanded by 801 individuals, fueled by over 1,100 new jobs and a reduction of more than 300 people actively seeking employment. While the labor force participation rate remained steady at 59.2%, it showed an annual improvement of seven-tenths of a percentage point. Over the past year, employment in Arkansas increased by nearly 20,000, although the number of unemployed job seekers rose by more than 7,600, contributing to a slight annual rise in the unemployment rate.
Nonfarm payroll employment in Arkansas also rose, adding 4,100 jobs in March to reach a total of 1,341,200 positions. Job gains were broad, with six major industries posting increases mostly attributed to seasonal factors. Leisure and Hospitality led with 3,000 new jobs, followed by Government with 1,000 and Construction adding 800. Year-over-year, total payroll jobs increased by 2,800, with strongest growth in Leisure and Hospitality, Private Education and Health Services, and Trade-Transportation-Utilities. However, declines were recorded in Manufacturing, Government, and Financial Activities sectors over the same period.