Little Rock, AR – Jonesboro Right Now – Arkansas’ unemployment rate dipped below 4% in August as statewide employment reached another record high, according to a report released Friday by the Arkansas Department of Commerce and the U.S. Bureau of Labor Statistics.

The state’s seasonally adjusted jobless rate fell one-tenth of a percentage point from 4.0% in July to 3.9% in August, marking the fourth consecutive month of decline. Arkansas continues to track lower than the national average, with the U.S. unemployment rate holding steady at 4.1%.

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Statewide employment climbed by 1,972 people during the month to a record 1,401,154 employed Arkansans. Concurrently, the number of unemployed Arkansans actively seeking work fell by 1,780 to 56,924. The overall civilian labor force grew slightly by 192 people to 1,458,078—also a record level.

Over the past year, Arkansas has added 22,140 employed residents compared to August 2025. Combined with ongoing population growth, the state’s labor force participation rate rose four-tenths of a percentage point over the year to 59.1%.

Employment in Arkansas (Seasonally Adjusted) Three-Year Comparison | Courtesy of Arkansas Department of Commerce

Back-to-School Hiring Drives Monthly Job Surge

Nonfarm payroll jobs saw a substantial monthly increase of 12,200 positions in August, primarily reflecting seasonal hiring tied to the start of the new academic year.

The largest gains were recorded in:

  • Government: +5,700 jobs (including +3,600 in state education and +2,900 in local education)
  • Private Education and Health Services: +3,200 jobs
  • Professional and Business Services: +1,700 jobs
  • Leisure and Hospitality: +1,500 jobs

Year-Over-Year Job Trends

Compared to August 2025, nonfarm payrolls across Arkansas are up by 11,300 jobs.

Annual growth was anchored by the Leisure and Hospitality sector, which reached an all-time high after adding 6,200 jobs over the 12-month span. Other sectors showing notable annual expansions include:

  • Professional and Business Services: +3,400 jobs
  • Trade, Transportation, and Utilities: +2,800 jobs
  • Construction: +1,500 jobs

Those gains offset annual contractions in Government (-1,300), Financial Activities (-1,200), and Other Services (-1,100).

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