Arkansas Metro Jobless Rates Fall in August; Northwest Arkansas at 2.9%

Northwest Arkansas posted a 2.9% unemployment rate in August, the lowest among the seven metro areas in or connected to Arkansas, according to the U.S. Bureau of Labor Statistics metro jobs report released Wednesday, Sept. 30. Five of the seven metros came in below the statewide August rate of 3.9%.

Six of the seven metro areas had jobless rates lower in August than in August 2025, and the estimated number of unemployed fell in all seven. Texarkana held the highest rate at 4.5%, down from 4.7% a year earlier. Memphis/West Memphis was the only metro where the rate rose, to 4.6% from 4.5%. The August figures are preliminary and subject to revision.

Where the jobs are growing

Central Arkansas — Little Rock, North Little Rock and Conway — had 395,500 nonfarm jobs in August, up 4,300 jobs, or 1.1%, from 391,200 in August 2025. The metro's unemployed count fell to 14,363 from 16,064. The region set a nonfarm jobs record of 397,400 in December 2025.

Northwest Arkansas, the state's second-largest metro, added 6,800 nonfarm jobs year over year, reaching 309,400 — a 2.2% gain that outpaced every other metro in the state. The region set its record of 309,800 jobs in May. Its unemployed count dropped to 9,514 from 10,818.

Fort Smith remained essentially flat at 101,200 nonfarm jobs, just above 101,100 a year earlier, and still well below its September 2007 peak of 108,700. Jonesboro added 600 jobs to reach 64,500, short of its December 2025 record of 65,500. Hot Springs shed jobs, falling to 40,500 from 40,800, though its jobless rate still improved to 3.6% from 4.3%.

What does this mean for job seekers?

For workers in Northwest and Central Arkansas, the combination of job growth and falling unemployment counts signals a labor market where employers are still adding positions faster than the labor force is expanding — Northwest Arkansas cut its jobless rate from 3.4% to 2.9% in a year. In Fort Smith and Hot Springs, by contrast, declining unemployment reflects people leaving unemployment rolls rather than payroll growth, which points to a tighter market with fewer new openings.

The state and national picture

Arkansas' jobless rate fell to 3.9% in August from 4.2% in August 2025, helped by a 5% decline in the number of unemployed and a slight gain in nonfarm jobs. The state's labor force grew 1.3% year over year. Nonfarm payrolls totaled 1,348,500, up 7,800 jobs, or 0.6%, from 1,340,700 — a rebound from July's year-over-year gain of just 1,900 jobs.

Nationally, unemployment rates were lower than a year earlier in 234 of 387 metropolitan areas, higher in 126, and unchanged in 27. Cleveland, Ohio, had the lowest rate at 1.8%, while El Centro, Calif., had the highest at 21.9%. The U.S. rate stood at 4.3%, with 230 areas below it and 142 above.

The figures also reflect significant revisions from methodology changes implemented in January: McDonald County, Mo., was removed from the Northwest Arkansas metro, LeFlore County, Okla., was removed from the Fort Smith metro, and Pine Bluff is no longer reported as a metropolitan statistical area. The next rounds of BLS revisions will show whether the state's August rebound in job growth extends into the fall.