(July 2026) Arkansas’ economy has undergone profound positive changes in the first quarter of the 21st century (2000-2024). Growth rates in multiple Arkansas jobs sectors exceeded the U.S. average, while income growth boosted the state’s national ranking, according to federal economic records.

Jobs Growth

The structure of Arkansas’ economy continues to evolve, with services-producing sectors creating more than two-thirds (67%) of jobs in December 2024, the last month in the 21st century’s first quarter. Services-producing sectors created 57% of jobs in January 2000, the period’s first month. By contrast, the percentage of jobs created by goods-producing sectors declined from 26% to 17%, U.S. Bureau of Labor Statistics records shows. (1)

Jobs growth in multiple Arkansas services-producing sectors topped U.S. averages in the 25-year period (January 2000 to December 2024).

Arkansas service sector jobs growth rates vs. U.S.

Professional & Business Services             63.9%  vs.       36.7%

Leisure & Hospitality Services                   54.4%              44.0%

Financial Activities                                      31.1%               18.1%

Other Services                                            26.1%              16.1%

Trade, Transportation & Utilities             11.6%               10.6%

Construction, a goods-producing sector, also topped the U.S., 25.6% versus 22.6%. Government grew at a lower rate than the U.S., 12.4% to 14.4%. (2)

The Government sector includes federal, state, county, local and education.

Percentage Shares Growth by Service Sector

Two charts illustrate how services-producing sectors played a greater role in the 21st century’s first quarter. They show jobs growth in five service sectors that increased their percentage shares of total Arkansas nonfarm payroll employment in the period. These five sectors are Private Education & Health, Professional & Business, Leisure & Hospitality, Financial Activities, and Other Services.

January 2000 

Private Education & Health                 11.0%

Professional & Business                             8.6%

Leisure & Hospitality                               7.4%

Financial Activities                                3.9%

Other Services                                              3.6%

December 2024

Private Education & Health                15.6%

Professional & Business                        12.1%

Leisure & Hospitality                              9.8%

Financial Activities                               4.5%

Other Services                                             3.9%

Construction was the only goods-producing sector that increased its share in the period.  Construction’s percentage share of total Arkansas employment increased from 4.7% (January 2000) to 5% (December 2024).

The other two goods-producing sectors-Manufacturing and Mining & Logging-reported declines in the period.

Government reported a modest decline from 16% to 15.5%, BLS records show.

State GDP Rank

Despite the Manufacturing jobs decline, the sector made a significant contribution to Arkansas real (inflation-adjusted) GDP growth, which grew

54.3% in the 25-year period.  Manufacturing’s share of Arkansas real GDP topped all private sectors in January 2000 (18.2%), and was second in December 2024 (13.8%), trailing only Finance, Insurance, Real Estate, and Leasing (15.6%). Manufacturing produced more goods with fewer workers.

An unreported dimension of Arkansas’ economy is that it ranked 35th in real GDP in 2024. This places Arkansas near the middle tier of all 50 states. (3)

–Greg Kaza

Source: U.S. Bureau of Labor Statistics (www.bls.gov) “Employment Statistics.”

(1) The Goods-Producing sector includes Construction, Manufacturing, and Mining and Logging. Arkansas (January 2000) Goods-Producing, 301,900; Services-Producing, 660,400; Government, 183,800; (December 2024) Goods-Producing, 233,600; Services Producing. 895,600; Government, 206,500.

(2) Arkansas nonfarm payroll employment (January 2000 to December 2024): Professional and Business Services:  98,900 to 162,100; Leisure & Hospitality: 84,800 to 130,900; Financial Activities: 45,600 to 59,800; Other Services: 41,400 to 52,200; Trade, Transportation & Utilities: 241,600 to 269,600; Construction:  53,500 to 67,200; and Government: 183,800 to 206,500. U.S. nonfarm payroll employment (January 2000 to December 2024): Professional and Business Services: 16,488,000 to 22,532,000; Leisure & Hospitality: 11,713,000 to 16,862,000; Financial Activities: 7,769,000 to 9,179,000; Other Services: 5,146,000 to 5,972,000; Trade, Transportation & Utilities: 26,043,000 to 28,811,000. Construction: 6,752,000 to 8,276,000; and Government: 20,571,000 to 23,529,000.

Source: U.S. Bureau of Economic Analysis (www.bea.gov)

(3) “Real GDP by State” and “State annual gross domestic product (GDP) summary. Real Gross Domestic Product (GDP) (Millions of chained 2017 dollars).