(March 2021) Arkansas’ job creation rate in the Leisure and Hospitality employment supersector declined after two minimum wage increases last decade, U.S. Bureau of Labor Statistics (BLS) records show.

Early in the 21st century, Arkansas’ job creation rate in the sector (16.1%) bested the national average (13.1%) in an economic expansion (November 2001-December 2007). Growth at the national level (29.4%) topped Arkansas (19.9%) in a second expansion (June 2009-February 2020), records show.

In 2014, Arkansas voters raised the minimum wage from $6.25 to $7.50 per hour (Jan. 1, 2015), to $8 (Jan. 1, 2016) and to $8.50 (Jan. 1, 2017). In 2018, voters again raised the minimum wage to $9.25 (Jan. 1, 2019), to $10 (Jan. 1, 2020) and to $11 (Jan. 1, 2021).

Relative Position Declines Vs. Border States

Among the six states that border it, Arkansas is the only state to trail the national average in an expansion after leading the U.S. (see Appendix)

Leisure and Hospitality

Economists study Leisure and Hospitality when examining the minimum wage. The supersector includes the accommodation and food services sector, which “comprises establishments providing customers with lodging and/or preparing meals, snacks, and beverages for immediate consumption,” the BLS explains. The supersector also includes the arts, entertainment, and recreation sector.

–Greg Kaza

 

 

APPENDIX

First Expansion (November 2001-December 2007)

 

Texas 19.8% (833,200; 997,900)
Tennessee 18.5% (235,000; 278,400)
Arkansas 16.1% (87,000; 101,000)
United States 13.1% (11,985,000; 13,550,000)
Missouri 10.0% (256,100; 281,700)
Oklahoma 9.2% (127,200; 138,900)
Mississippi 6.1% (119,900; 127,200)
Louisiana 0.8% (195,900; 194,300)

 

Second Expansion (June 2009-February 2020)

 

Texas 41.9% (1,006,800; 1,428,900)
Tennessee 35.1% (264,000; 356,600)
United States 29.4% (13,076,000; 16,915,000)
Oklahoma 25.4% (140,600; 176,300)
Louisiana 25.0% (194,500; 243,200)
Arkansas 19.9% (100,100; 120,000)
Mississippi 16.2% (120,300; 139,800)
Missouri 13.4% (273,900; 310,600)

 

(Source: BLS, Current Employment Statistics)