Commerce report: Arkansas unemployment at 3.7%; department highlights adjudication backlog progress and employer protections

Jim Hudson, speaking for the Department of Commerce and the Division of Workforce Services, told the Senate Public Health, Welfare and Labor Committee that Arkansas’ labor market has largely recovered from the pandemic’s employment shock but faces a labor-supply shortage.

“We’re doing quite well right now. 3.7 unemployment rate, that's the sixteenth in the nation in terms of strength of the labor economy,” Hudson said, and described sectoral variation: durable-goods manufacturing is above pre-pandemic levels while leisure and hospitality remain weaker.

Hudson reviewed pandemic-era claim volumes: initial claims peaked in April 2020, then dropped to recent weekly levels around 1,400; continued claims fell from a high of about 122,000 to roughly 8,000. He said adjudication backlogs were reduced by clearing about 102,000 claims and that current adjudications are moving through the system.

The department also described administrative relief provided under Act 153: agency staff waived employer charges for pandemic-era claims for certain quarters to prevent those charges from raising 2021 employer rates. Hudson told members the state’s unemployment trust fund remained healthy at roughly $825 million.

During questioning, members described employer reports of job applicants who apply only to “check the box” for benefits. Hudson said employers can report claimants who decline suitable work so the agency can review benefit eligibility and, if appropriate, terminate benefits. He acknowledged continued local-processing variability and said the department will supply guidance for employers on how to report refusals and other issues.

Hudson and staff agreed to provide more detailed breakdowns on hospital participation in safety-bundle programs and regional labor-market metrics at lawmakers’ requests.