Using data from several government and private sources and interviews with working families, this report examines the Arkansas economy, how Arkansas working families have fared economically in recent years, and their current challenges. The report offers suggestions about how the state can provide the tools families need to continue to move up the economic ladder while meeting their childrens basic needs. Statistics are provided on: (1) the unemployment rate in the state and by county; (2) racial/ethnic differences in unemployment; (3) average annual hours worked per year; (4) employment changes by economic sector; (5) average hourly wages; (6) family income trends for various income groups; (7) child poverty rates; (8) family income standards; (9) capital gains; (10) family financial assets; (11) state and local taxes as a share of family income; (12) usage of the federal earned income tax credit; (13) educational attainment; (14) hourly wages for different educational levels; (15) home ownership and housing affordability; (16) car ownership; (17) employment of former welfare recipients; (18) access to the state child health insurance program; (19) health care coverage; (20) food insecurity; and (21) food stamp participation rates. The report notes that poverty among Arkansas working families is not confined to any particular type of family, educational level, age, or race. More than 30 percent of low-income families work in the service sector, and 24 percent work in the retail sector. Responses to recent polls illustrate that Arkansas voters approve of policies supporting working families. Suggestions for policies include reducing the tax burden on low-income working families, improving access to quality early care and education, improving access to health care, providing greater access to education and training, and assisting with asset-building policies. (KB)