Unemployment Still A Concern For Many Rural Arkansas Counties

by Wayne Miller - April 28, 2021

Many Arkansans remain unemployed even though the official unemployment rate for Arkansas declined from a high of 10% in April 2020 to 4.5% in February and 4.4% in March 2021.¹ However, there were approximately 35,000 fewer people employed in the state in February 2021 compared to pre COVID-19 levels in February 2020.  

Part of the reason why Arkansas has a low unemployment rate, even though fewer people were employed in February 2021 than pre COVID-19 levels, is because some workers dropped out of the labor force and are not counted as unemployed. Rural counties² experienced somewhat larger declines in the labor force than urban counties between February 2020 and February 2021, declining a little over 2% in rural counties compared to a 1% decline in urban counties. 

If the February 2021 county unemployment rates³ are adjusted for those dropping out of the labor force between February 2020 and February 2021, the unemployment rate for the 62 rural Arkansas counties jumps from 5.8% to 7.8%. Similarly, the unemployment rate for the 13 urban counties increases from 5% to 6%. 

As seen in the map in Figure 1, seven rural counties had adjusted unemployment rates over 10%, including: Marion, Izard, Mississippi, St. Francis, Desha, Ashley and Chicot counties.

Another 32 rural counties and three urban counties had adjusted unemployment rates between 7.5% and 10%. Therefore, over 60% of Arkansas’ rural counties still had adjusted unemployment rates over 7.5% in February 2021. 

Figure 1. Adjusted Unemployment Rates - February 2021

For more information about county employment and finances in Arkansas visit our local government website at www.uaex.uada.edu/localgov and view a copy of the 2021 Rural Profile of Arkansas at www.uaex.uada.edu/ruralprofile.

¹ These are seasonally adjusted unemployment rates.
² For a definition and identification of the 62 rural counties in Arkansas, see the 2021 Rural Profile of Arkansas at www.uaes.uada.edu/ruralprofile
³ The county unemployment rates are NOT seasonally adjusted.