By Arkansas Black Vitality Staff

March 17, 2025—In January, the state and national unemployment rate for Black workers was significantly higher than the rest of the U.S. as deep job cuts across federal agencies and corporate America disproportionately impacted the minority labor pool.

The state’s latest unemployment report, released today by the Division of Workforce Services (DWS) in conjunction with the U.S. Bureau of Labor Statistics (BLS), shows that Arkansas’s unemployment rate remained stable at 3.6% between December 2024 and January 2025. For Black workers, the jobless rate was 4.3%, up slightly from 4.2% in December

The Arkansas unemployment rate for December 2024 was initially estimated at 3.4% but later revised to 3.6%. Arkansas’ civilian labor force rose 2,068 in January, due mainly to the addition of 1,956 more employed than those out of work. This marks the 36th consecutive month of record-high employment. Arkansas’ labor force participation rate grew, reaching 58.4% in January. However, that is still well below the national labor force participation rate of 62.4%.

Nationally, the U.S. jobless rate declined one-tenth of a percentage point, from 4.1% in December 2024 to 4% in January 2025, as U.S. employers added 151,000 nonfarm jobs to payrolls.

Among the major worker groups, the unemployment rate for Black workers over 16 years of age was the highest at 6%, 1.9 points higher than the national jobless rate. The unemployment rate for Whites stood at 3.8%, while for Asians and Hispanics, it changed slightly, at 3.2% and 5.2%, respectively.

In February, average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents, or 0.3% to $35.93. Over the past 12 months, average hourly earnings have increased by 4%. In February, average hourly earnings of private-sector production and nonsupervisory employees rose by 9 cents, or 0.3% to $30.89.

In February, the average workweek for private non-farm employees remained at 34.1 hours. In manufacturing, the average workweek remained at 40.1 hours, and overtime edged up by 0.1 hours to 2.9 hours. The average workweek for production and nonsupervisory employees on private non-farm payrolls was unchanged at 33.6 hours.

Healthcare added 52,000 jobs in February, which is in line with the average monthly gain of 54,000 over the prior 12 months. Employment in financial activities rose by 21,000, above the previous 12-month average gain of 5,000.

Transportation and warehousing employment continued to trend up in February, with 18,000 new jobs in line with the average monthly gain over the prior 12 months at 13,000. Employment in social assistance continued to trend up in February at 11,000), but below the average monthly average of 21,000 job additions.

As Elon Muck’s Department of Government Efficiency job cuts hit the U.S. job market, federal government employment declined by 10,000 in February. Since taking office on Jan. 20, President Trump has moved forward with implementing the GOP’s Project 2025 blueprint, which calls for mass layoffs across the federal government, with a particular focus on jobs related to diversity, equity and inclusion (DEI).

Employment in retail trade changed little over the month as 6,000 positions were cut following the holiday season.  Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; information; professional and business services; leisure and hospitality; and other services.