Arkansas

The Compass Report shows that Arkansas’ economy ‘remains in an expansion’ – Talk Business & Politics

Published

2 years ago

September 13, 2024

The Compass Report shows that Arkansas’ economy ‘remains in an expansion’ – Talk Business & Politics

Arkansas’ economy in the second quarter of 2024 continued to see substantial gains in non-farm employment and the construction sector, while manufacturing and hospitality faced employment declines.

According to The Compass Report for the second quarter of 2024 (April-June), Arkansas’ nonfarm employment showed robust growth, with the state gaining 10,000 jobs between April and June, bringing the total to 1,374,000 nonfarm jobs in June 2024, compared to 1,364,000 in June 2023.

Employment remained steady throughout the quarter, with 1,370,000 jobs in April and 1,369,000 in May. This consistent job market growth earned Arkansas an A+ rating for nonfarm employment expansion, with the state continuing to set employment records each quarter.

“Arkansas’ economy continues to add jobs, with growth in nonfarm payroll employment statewide and in all four regions. The economy remains in an expansion, not a recession but rising unemployment rates suggest labor force growth is outpacing jobs creation. Still, no region recorded an unemployment rate greater than 3.9 percent,” said economist Greg Kaza, executive director of the Arkansas Policy Foundation.

However, the unemployment rate in Arkansas rose once again during the second quarter of 2024, following the upward trend from the first quarter. In June 2024, the unemployment rate stood at 3.3%, compared to 2.6% in June 2023.

“The rise in unemployment persisted throughout the quarter, with the rate increasing to 3.4% in April and May 2024. Despite the state’s job growth, the higher unemployment rate indicated continued challenges in the labor market, earning a D grade for the change in the unemployment rate,” according to analysis from The Compass Report.

The Compass Report is a partnership between the University of Arkansas at Fort Smith (UAFS) and Talk Business & Politics. First National Bank of Fort Smith is a sponsor of the statewide report. Kendall Ross, UAFS associate vice chancellor of Economic and Workforce Development, and Troy Rodriguez, a data analyst in the UAFS Center for Economic Development who helps compile, manage and review the data, are responsible for data collection and written analysis for the report.

Kaza also noted that the construction sector continues to be bright spot.

“Strong growth in the construction sector noted earlier this year continued in the quarter, with significant gains in the Fort Smith region, Northwest Arkansas and the central part of the state. Arkansas construction sector jobs have expanded 31 percent since the last recession ended in April 2020, the highest growth rate in the 12-state southeast region,” Kaza wrote in his analysis.

Following are other Arkansas economy analysis from The Compass Report.
• June 2024 gross sales and use tax collections reached $358.615 million, up from $347.776 million in June 2023. Similarly, May 2024 collections rose to $357.365 million compared to $314.722 million in May 2023. April also increased to $360.013 million, up from $353.149 million in April 2023.

• Building permit valuations for housing in Arkansas presented a mixed picture during the second quarter. In April 2024, permit valuations jumped to $264.37 million from $191.07 million in April 2023, signaling robust construction activity. May 2024 showed a slight decline, with valuations falling to $246.073 million, compared to $248.99 million in May 2023. The downward trend continued into June, with valuations reaching $267.57 million, down from $306.216 million in June 2023.

• Manufacturing employment continued its downward trend throughout Q2 2024. In June 2024, Arkansas had 162,000 manufacturing jobs, down from 165,300 in June 2023.

• Employment in construction increased to 67,100 jobs in June 2024, up from 63,500 in June 2023. The sector consistently grew across the quarter, with 67,900 jobs in April and 67,600 in May 2024.

• Hospitality employment declined to 128,000 jobs in June 2024, down from 131,500 in June 2023. The industry also saw job losses in April and May 2024 compared to the same period in 2023.

Link here for the full The Compass Report for the second quarter.

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Arkansas

Arkansas Governor joins national A.I. workforce initiative

Published

9 hours ago

June 25, 2026

Press Room

Arkansas Governor joins national A.I. workforce initiative

LITTLE ROCK, AR (KATV) — Governor Sarah Huckabee Sanders has joined a new national artificial intelligence initiative that launched Thursday, June 25.

RAISE US, started by former Governor Eric Holcomb of Indiana and Gina Raimondo, former U.S. Secretary of Commerce is a nonpartisan national organization that will partner with governors, employers, workers and training organizations to help the workforce transition to an AI economy.

“As artificial intelligence transforms America’s economy, we have one clear message: technology should empower people, not replace them. By leveraging our Arkansas LAUNCH initiative, and with the resources and expertise provided by RAISE US, Arkansas will turn that mission into reality. We want the Natural State to be a leader on education, workforce training, and up-skilling, and this new partnership gives us the tools we need to build a model for the entire nation.”

The organization will design and pilot incentives to retrain workers, new approaches to support job transitions, and training models tied to employer demand.

RAISE US launches with more than two dozen American companies and philanthropies and initial state partnerships in Connecticut, Maryland and Utah.

“America has a technology strategy for leading the global AI competition. It does not yet have a people strategy — and we cannot lead without one,” Raimondo, who will serve as CEO of RAISE US, said.

“If we build the best AI systems in the world and leave millions of Americans behind, we won’t have won anything; we’ll have automated our own decline. I believe AI will create new jobs and industries over time, but the transition could be disruptive, and it’s already underway. We shouldn’t fearmonger, but we can’t pretend our training and worker support systems are ready either. It’s time for innovative and practical solutions. This moment demands ambition, urgency, and creativity. We’ve assembled the country’s top companies, best economists, and bipartisan governors at a scale rarely seen — all to advance new ideas and incentives, pilot them with governors and business, and scale what works.”

Governor Sanders is partnering with RAISE US to support Arkansas LAUNCH, an AI-powered career navigation platform that connects students and jobseekers to personalized learning and employer-linked career pathways.

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