The unemployment rate was steady (again) at 4.1%, but Arizona jobs continued an uneven performance, according to an analysis from Eller’s Economic and Business Research Center.
Arizona seasonally-adjusted jobs rose a modest 700 over the month in August, after a revised increase of 2,700 in July. The preliminary July estimate suggested a loss of 4,900 jobs. The state seasonally-adjusted unemployment rate was steady again last month at 4.1%. That was just below the U.S. at 4.3%.
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Over the month job gains were well distributed across industries in August. Trade, transportation, and utilities added 1,500, financial activities added 1,400, private education and health services add 1,200, and construction and manufacturing added 1,100 jobs each. Jobs were also up in professional and business services (up 600), other services (up 400), and natural resources and mining (up 200).
Jobs were down over the month in information (down 100), leisure and hospitality (down 2,300), and government (down 4,400).
Over the year, Arizona jobs rose 38,500 in August, for 1.2% growth. That was faster than the nation at 0.8%. Year to date through August, Arizona jobs were up 0.3%, compared to the same period one year ago.
Exhibit 1 shows state job growth over the year by industry and annual wages in 2024. Job gains were dominated by private education and health services, with smaller positive contributions by a wide range of sectors. Those gains were partly offset by losses in government; manufacturing; and information.
Exhibit 1: Arizona Net Job Change (Thousands) and 2024 Annual Wages per Worker
The best way to understand current employment trends in Arizona is to visualize the level of employment since 2019 (Exhibit 2). As the exhibit shows, state jobs have been generally rising, but at a slow pace, and that growth is unusually uneven.
Exhibit 2: Arizona Nonfarm Payroll jobs, Seasonally Adjusted, Thousands
Jobs in the Phoenix MSA rose 35,900 over the year in August, accounting for 93.2% of state gains. That translated into growth of 1.5%. Through August, Phoenix jobs were up 0.4%.
The Tucson MSA posted job growth of 4,300 over the year in August, for 1.1% growth. Year to date, Tucson jobs were down 0.1%.
For the Prescott MSA, jobs declined 300 over the year in August, which translated into a 0.4% drop. Year to date, Prescott jobs were down 0.8%.
