The U.S. unemployment rate changed little in June at 4.1%, with total nonfarm payroll employment increasing by 147,000, according to the Bureau of Labor Statistics’ July 3rd employment situation summary. Job gains occurred in Government (73,000), Health Care (39,000), and Social Assistance (10,000). Employment showed little change over the month in other major industries. Average hourly earnings for all employees on private payrolls rose by 8 cents, or 0.2%, to $36.60. The average workweek edged down by 0.1 hour to 34.2 hours in June. Additionally, this release revises April and May employment up by a combined 16,000. -Delaney O’Kray-Murphy
MORE NEWS: How the West Valley technology sector is booming
INDUSTRY INSIGHTS: Want more news like this? Get our free newsletter here
Total nonfarm employment in Arizona increased by 14,400 jobs over the year in June, with the seasonally adjusted unemployment rate remaining at 4.1%. The U.S. seasonally adjusted unemployment rate decreased b y 0.1 percentage points in June to 4.1%. Arizona non-seasonally adjusted total nonfarm employment decreased by 59,100 in June, worse than the pre-pandemic average of -51,600. Employment gains were reported in Trade, Transportation, & Utilities (1,600), Manufacturing (1,100), and Construction (600). Employment losses occurred in Government (-37,100), Professional & Business Services (-8,500), Leisure & Hospitality (-7,400), Private Educational Services (-5,900), Health Care and Social Assistance (-1,700), Financial Activities (-700), Other Services (-600), and Information (-500). No net change was reported in Natural Resources & Mining. -Delaney O’Kray-Murphy
In June, over the month state unemployment rates were lower in two states, higher in one state, and stable in the remaining 47 and the District of Columbia. Arizona’s seasonally adjusted unemployment rate remained the same over the month at 4.1%. South Dakota had the lowest unemployment rate at 1.8%. The District of Columbia had the highest unemployment rate at 5.9%, followed by California and Nevada at 5.9%. Over the year, nonfarm payroll employment increased in 15 states and was essentially unchanged in 35 states and the District of Columbia. The largest job gains occurred in Texas (198,300), Florida (142,300), and New York (100,100). The largest percent increases occurred in South Carolina (2.9), Idaho (2.5), and Hawaii (2.3). -Delaney O’Kray-Murphy
In May, over the year metropolitan unemployment rates were higher in 285 of the 387 areas, lower in 84, and stable in the remaining 18. The May unemployment rate for the Tucson and Phoenix metropolitan areas came in at 4.2% and 3.7%, respectively. Yuma had the highest unemployment rate in Arizona at 13.9%, while Phoenix had the lowest. Sioux Falls, SD-MN, had the lowest unemployment rate at 1.7%, and El Centro, CA, had the highest rate at 17.4%. The largest over-the-year unemployment rate increase occurred in Yuma, AZ, with +2.2 percentage points, and the largest decrease occurred in Elkhart-Goshen, IN, with -1.1 percentage points. -Delaney O’Kray-Murphy
The May 2025 release of the Job Openings and Labor Turnover (JOLTS) report stated that the number of job openings in the U.S. was little changed at 7.8 million, with a job openings rate of 4.6%. The number of job openings increased in accommodation and food services (+314,000) and in finance and insurance (+91,000). The number of job openings decreased in federal government (-39,000). Nationally, the number of hires was little changed at 5.5 million. In May the rate was 3.4%, 3.5% in April, and 3.4% in March. The number of total separations in the nation was little changed at 5.2 million, with a rate of 3.3%. The number of quits was little changed at 3.3 million with a rate of 2.1%. The number of layoffs and discharges changed little at 1.6 million and a rate of 1.0%. Layoffs and discharges decreased in finance and insurance (-47,000). -Alex Jaeger
The U.S. trade deficit increased to $71.5 billion in May, up from a revised figure of $60.3 billion for April. Exports and imports were both lower over the month, with exports decreasing $11.6 billion while imports decreased $0.3 billion. Year-to-date, the May goods and services deficit was 50.4% higher than in the same period last year. The largest U.S. trade surpluses for May were with Netherlands ($4.8 billion), Hong Kong ($3.6 billion), South and Central America ($3.3 billion), and Switzerland ($3.3 billion). Trade deficits were recorded with European Union ($22.5 billion), Mexico ($17.1 billion), Vietnam ($14.9 billion), and China ($14.0 billion). The trade deficit with China reflected a $5.7 billion decrease for the month on a seasonally adjusted basis. -Valorie Rice
The U.S. Consumer Price Index (CPI) for all items rose 0.3% over the month in June 2025, up from 0.1% in May. The CPI for shelter drove the acceleration, rising 0.2% over the month. The shelter index includes rent, imputed owner-occupied rent, and short-term rentals. The gasoline index rose 1.0% in June and the food index rose 0.3%. Over the year, the all-items CPI rose 2.7%, up from 2.4% in May. Less food and energy, prices were up 2.9%.
Phoenix MSA all-items inflation remained subdued in June, with the index up 0.2% over the year. The all-items less food and energy index rose 0.1%. Consumer commodities prices fell 0.6% while services increased 0.6%. The Phoenix shelter CPIU fell 0.7% over the year in June. -George Hammond
The U.S. Producer Price Index for final demand was stable over the month in June, after rising 0.3% in May. Final demand prices for goods rose 0.3% over the month, while services declined 0.1%. Over the year, final demand prices rose 2.3%, with core goods prices up 2.5%. Producer prices for intermediate processed goods rose 0.1%, the third consecutive increase. The June increase was driven primarily by processed energy goods. In particular, the index for natural gas to electric utilities jumped 12.1%. The index for unprocessed goods rose 0.7%. -George Hammond
Older adults now outnumber children in many parts of the nation based on recent 2024 Census Bureau population estimates by characteristics (age, sex, race, and Hispanic origin). In 2024, there were 11 states where the population aged 65 and over was greater than that of the population aged 18 and under, up from just three states in 2020. Arizona was not among those states, as it still reports the younger population exceeding that of the older. However, nearly half of the counties in the state do have a larger portion of older adults compared to children, those being Cochise, Gila, La Paz, Mohave, Pima, Pinal, and Yavapai. The median age in Arizona for 2024 was 39.2 years, similar to the U.S. at 39.1 years. The Asian population was the fastest growing in the U.S. between 2023 and 2024, gaining 4.2%. It was also the fastest growing population in Arizona for that period, with a 6.8% increase. The second-fastest growing population in Arizona was Black or African American, rising 3.7% compared to 1.0% nationally. The Hispanic or Latino population in Arizona grew at a similar pace as the nation, 2.8% and 2.9%, respectively. -Valorie Rice
Arizona added business establishments at a higher rate than the nation between 2022 and 20233 based on the 2023 County Business Patterns, released by the Census Bureau on June 26. The number of establishments in Arizona grew by 1.9% in 2023 while national growth was 0.8%. All counties in Arizona save Apache experienced an increase in establishments with Pinal showing the highest growth at 4.2%. Within Arizona, the industries adding the largest share of establishments over the year were educational services (4.7%), health care and social assistance (4.4%), and construction (4.2%). An establishment is a single location where business is conducted or services are performed and not necessarily the same as
