STATE ECONOMIC PROFILE
Arkansas Economic Overview
$151.4b
GROSS STATE PRODUCT
Growth Rate 2020-25
State Growth Rank
3.4%
17
3,106,751
POPULATION
Growth Rate 2020-25
State Growth Rank
0.6%
21
249,622
BUSINESSES
Growth Rate 2020-25
State Growth Rank
2.7%
30
Overview of the Arkansas Economy
In 2025, the state of Arkansas has a population of 3,106,751, having grown an annualized 0.6% over the five years to 2025, which ranks it 21st out of all 50 US states by growth rate. Arkansas' gross state product (GSP) in 2025 reached $151.4b, with growth of 3.4% over the 5 years to 2025. Businesses in Arkansas employed a total of 1,295,972 people in 2025, with average annual employment growth over the past five years of 2.2%. The top three sectors by total employment are Manufacturing, Real Estate and Rental and Leasing, Healthcare and Social Assistance, while the unemployment rate across the state in 2025 was 3.8%.
What is Arkansas' Gross Domestic Product (GDP)?
In 2025, Arkansas' GDP reached $151.4b, representing an increase of 3.4% from 2024. Arkansas' GDP has grown at an annualized rate of 2.8% over the five years to 2025. Moreover, Arkansas' trailing five-year GDP growth ranks it 17th out of all 50 US states.
State GDP, or Gross State Product, is a measurement of a state's output, or the sum of value added from all industries in the state. It is a common indicator used to track the health of a state's economy.
You can track trends in Arkansas' GDP, and compare them to the national average, using the chart below.
STATE ECONOMIC PROFILE
Arkansas Industry Trends
What are Arkansas' Largest Industries by Revenue?
The largest industries by revenue in Arkansas are Soft Drink, Baked Goods & Other Grocery Wholesaling, Wholesale Trade Agents and Brokers and Hospitals, which generated $15.7b, $14.2b and $13.3b in 2025.
STATE ECONOMIC PROFILE
Top Companies in Arkansas
Top 10 Companies Headquartered in Arkansas by Employment
The largest companies by employment in Arkansas are State of Arkansas, Walmart and Baptist Health, which employed 57,000, 55,660 and 11,000 people in 2025.
STATE ECONOMIC PROFILE
Arkansas Sector Statistics
In Arkansas, certain sectors drive a higher share of state GDP and employ more workers than others. However, simply looking at raw numbers doesn't always tell the whole story. Factoring in the current year growth percentage, in addition to the annualized growth percentage over the past five years, will give you a deeper understanding of the economic situation.
What is Arkansas' GDP by Sector?
The Manufacturing, Real Estate and Rental and Leasing and Healthcare and Social Assistance sectors contributed the most to Arkansas' GDP in 2025, representing a combined 38.9% of state GDP.
GDP trends by sector are an important indicator of which sectors are contributing the most value-add to the state's economy, in addition to how the state economy is evolving over time.
What is Arkansas' Employment by Sector?
The Healthcare and Social Assistance, Retail Trade and Manufacturing sectors contributed the most to employment in Arkansas in 2025, representing a combined 43.1% of state employment.
Employment trends by sector are an important indicator of which sectors are growing or contracting most rapidly relative to the state economy as a whole.
STATE ECONOMIC PROFILE
Arkansas Employment Trends
1.3m
EMPLOYMENT
Growth Rate 2020-25
State Growth Rank
1.5%
26
3.8%
UNEMPLOYMENT
Growth Rate 2020-25
State Growth Rank
-9.4%
18
What Employment Trends are Impacting Arkansas?
The state of Arkansas employs 1,295,972 people in 2025, which ranks it 34th out of all 50 US states. Employment in Arkansas has grown at an annualized rate of 1.5% over the five years to 2025, underperforming the national average of 2.0%. Major sectors by employment in Arkansas include Healthcare and Social Assistance, Retail Trade and Manufacturing, which employed 216,995, 183,022 and 158,681 people in 2025, respectively. Arkansas' unemployment rate is 3.8% in 2025, which ranks it 18th out of 50 states. Arkansas' unemployment rate has trended downwards at a rate of -9.4% over the five years to 2025, overperforming the US economy as a whole. Employment trends indicate the degree of tightness or slack in labor markets, in addition to the overall strength of an economy. Faster employment growth typically indicates a strong and growing economy, while lower unemployment tends to imply tightness in labor markets.
You can track unemployment trends in Arkansas, and compare them to the US economy, using the chart below.
$146.1k
PER CAPITA DISPOSABLE INCOME
Growth Rate 2020-25
State Growth Rank
12.0
13
What is Arkansas' Per Capita Disposable Income?
Per capita disposable income, also known as disposable personal income (DPI), is the amount of money that the average person in an economy has available for spending and saving after accounting for income taxes. Arkansas' DPI in 2025 was $146.1k, compared to the US average of $143.7k, which places it 13rd out of all 50 US states.
Disposable income is regarded as a key economic indicator as trends in disposable income are indicative of the level of aggregate demand, the state of labor markets and the financial strength of households.
You can track trends in Arkansas' per capita disposable income, and compare it to the US average, using the chart below.
STATE ECONOMIC PROFILE
Arkansas Construction & Building Trends
$5,115.1tn
NONRESIDENTIAL CONSTRUCTION
Growth Rate 2020-25
State Growth Rank
12.6%
32
$3.5tn
RESIDENTIAL CONSTRUCTION
Growth Rate 2020-25
State Growth Rank
7.4%
36
13,869
BUILDING PERMITS
Growth Rate 2020-25
State Growth Rank
1.6%
33
What can construction trends tell you about a state’s economy?
In Arkansas, non-residential construction was $5,115.1tn in 2025, which ranks it 32nd out of all US states. Residential construction was $3.5tn in 2025, which places Arkansas 36th in the United States. The number of building permits issued in Arkansas in 2025 was 13,869, representing a 1.6% annualized growth rate between 2020 and 2025.
Trends in the construction sector are important because it creates jobs, income and tax revenue for a state. In addition, construction sector activity impacts other sectors in its supply chain, including manufacturing, wholesaling, warehousing, transportation, and real estate, rental and leasing services. Therefore, construction trends are important indicators of the health of an economy.
You can track trends in the number of building permits issued in Arkansas, and compare it to trends in the number issued in the United States as a whole, using the chart below.
STATE ECONOMIC PROFILE
Arkansas Population Statistics
Which Counties in Arkansas have the Largest Populations?
The counties with the highest populations in Arkansas are Pulaski County, Benton County and Washington County, which had populations of 401,196, 328,141 and 271,368 people in 2025.
STATE ECONOMIC PROFILE
Arkansas Demographics
Education Level Arkansas
Race in Arkansas
Arkansas State Industry Reports
IBISWorld State Industry Reports help you quickly understand how an industry performs at the state level compared with the national level by providing accurate and unbiased industry information with a local focus. Use this collection to:
- Discover key local industry trends
- Identify threats and opportunities at the subnational level
- Inform your business strategies and planning
See our list of 642 Arkansas Industry Reports.
