By the Arkansas Black Vitality Staff

April 18, 2025 – The Black unemployment rate in Arkansas rose significantly in March in tandem with the higher state and national employment situation, leading some economists to predict an emerging labor pool crisis in the months ahead.  

The Arkansas Department of Commerce, in conjunction with the Bureau of Labor Statistics (BLS), announced on April 18 that Arkansas’ seasonally adjusted unemployment rate increased to 3.7% in March, up from 3.6% in February.

For Black workers, however, the state jobless rate (not seasonally adjusted) in March is now at a whopping 5.2%, 1.5 percentage points above the state average and a full point higher than the national unemployment rate. The Black unemployment rate for Arkansas is now reported month by the state Division of Workforce Services. It began the year at 4.3%

In March, Arkansas’ civilian labor force increased by 260 individuals, with 502 more unemployed job seekers and 242 fewer employed Arkansans. Compared to March 2024, there were 15,686 more employed individuals and 4,739 more unemployed Arkansans actively seeking work. The labor force participation rate remained stable over the month but increased by four-tenths of a percentage point over the year.

Nonfarm payroll jobs in Arkansas rose by 5,200 in March, totaling 1,378,100. The most significant gains were in Leisure and Hospitality (+3,200), Manufacturing (+1,200), Construction (+1,100), and Private Education and Health Services (+1,100). The largest loss occurred in Professional and Business Services (-2,100), primarily due to declines in administrative and support services (-1,900) 3.

Compared to March 2024, the state has 13,000 more jobs, with significant growth in Private Education and Health Services (+7,500), Trade-Transportation-Utilities (+4,700), and Manufacturing (+2,100) 4.

Nationally, the spread between the U.S. and Black jobless rate is also striking. In March, the national unemployment rate held at 4.2%, which is two percentage points lower than the Black jobless rate at 6.2%. The next national unemployment report will be released on May 2.

According to the BLS, unemployment rates were higher in March in 3 states, lower in 1 state, and stable in 46 states and the District of Columbia. Twenty-eight states and the District had jobless rate increases from a year earlier, one state decreased, and 21 states had little change. The national unemployment rate changed little over the month at 4.2% but was 0.3 percentage point higher than in March 2024.

In a recent speech on Friday that shook Wall Street and global financial markets, Federal Reserve Chair Jerome Powell said that the central bank is not prepared to adjust U.S. monetary policy until there is some clarity on President Trump’s tariff policy.

“As we gain a better understanding of the policy changes, we will have a better sense of the implications for the economy, and hence for monetary policy. Tariffs are highly likely to generate at least a temporary rise in inflation. The inflationary effects could also be more persistent,” said Powell. “Avoiding that outcome will depend on the size of the effects, on how long it takes for them to pass through fully to prices, and, ultimately, on keeping longer-term inflation expectations well anchored.

Powell stated that the U.S. labor market is at or near maximum employment, but job growth has slowed relative to last year, not mentioning the thousands of jobs cuts by the Trump administration through Elon Musk Department of Government

 “We understand that elevated levels of unemployment or inflation can be damaging and painful for communities, families, and businesses,” he said.