Arkansas Unemployment Rate Rises to 4.2% in December

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The Arkansas Department of Commerce and Bureau of Labor Statistics announced that the state's seasonally adjusted unemployment rate rose one-tenth of a percentage point in December, from 4.1% to 4.2%. Meanwhile, the U.S. jobless rate declined one-tenth of a percentage point to 4.4% during the same period. Arkansas' civilian labor force and employment both reached record high levels in December, but the number of unemployed Arkansans actively seeking work also increased, pushing up the state's unemployment rate.

Why it matters

The rise in Arkansas' unemployment rate, despite record-high labor force and employment levels, suggests that the state's economic recovery may be slowing down or uneven compared to the national trend. This could have implications for consumer spending, business investment, and overall economic growth in Arkansas.

The details

According to the report, Arkansas' civilian labor force increased by 5,162 in December to reach a record high of 1,444,246. Employment rose by 3,541, also reaching record high levels. However, the number of unemployed Arkansans actively seeking work increased by 1,621, causing the state's unemployment rate to rise. Compared to December 2024, there are 16,467 more employed and 10,537 more unemployed Arkansans actively seeking work. The state's nonfarm payroll jobs also rose by 1,400 in December, with the largest increase occurring in the Trade-Transportation-Utilities sector, mainly due to seasonal hiring in Retail Trade.

• The unemployment rate rose from 4.1% in November to 4.2% in December 2026.
• The U.S. jobless rate declined one-tenth of a percentage point to 4.4% in December 2026.
• Compared to December 2024, there are 16,467 more employed and 10,537 more unemployed Arkansans actively seeking work.