ARKANSAS CONTINUES TO TOP U.S. AVERAGE IN JOBS CREATION SINCE TAX CUT

(March 2025) Arkansas continues to top the U.S. average in jobs creation since state policymakers first cut the state income tax rate starting in January 2015, according to the latest numbers from the Bureau of Labor Statistics (BLS).

Arkansas nonfarm payroll employment, the broadest state-level economic indicator expanded 14.7% versus the national average (13.2%) between January 2015 and February 2025, BLS records show.(1)

State policymakers have reduced the top state income tax rate from 7.0% to 3.9% since January 2015. Policymakers could act again if the state records a revenue surplus in the current fiscal year, which ends June 30, 2025.

Arkansas trailed the U.S. average prior to the income tax cuts.

The national jobs creation rate was 7.3% between June 2009 and January 2015. By contrast, Arkansas’ job creation rate was 3.6% in the same period, BLS records show.(2)

The National Bureau of Economic Research (NBER) found the U.S. economy started an expansion in June 2009.(3)

— Greg Kaza

References

(1)      Arkansas (January 2015) 1,202,400; (February 2025, p) 1,379,200

           U.S. (January 2015) 140,568,000; (February 2025, p) 159,170,000. www.bls.gov

(2)      U.S. (June 2009) 131,007,000; (January 2015) 140,568,000. www.bls.gov

           Arkansas (June 2009) 1,161,000; (January 2015) 1,202,400

(3)      www.nber.org, “Business Cycle Dating”