November 15, 2022

AZ Business Magazine

Arizona No. 5 best state for hiring as crisis worsens

new study found Arizona is the No. 5 best state for hiring as the unprecedented hiring crisis worsens. CareerCloud today released a study on the Best States to Hire Workers using data from the Census Bureau, BLS, Tax Foundation, and the St. Louis Fed.

The rankings were determined by analyzing five factors: business tax policies, population increases, adults with bachelor’s degrees, diversity, and job openings to compete against.

Arizona ranked No. 23 in its business tax policies, No. 4 in population increase, No. 29 for adults with bachelor’s degrees, No. 12 for diversity, and No. 10 for job openings.

READ ALSO: 5 of 10 fastest-growing Arizona cities are in the West Valley

LEARN MORE: Here’s why Arizona jobs recovered faster than the U.S.

It has never been more challenging to hire workers. The Bureau of Labor Statistics (BLS) reported on October 4 that there were 10.7 million unfilled jobs in the United States while unemployment is at  3.7%. This means there were a historically low .5% unemployed Americans for every open job.  Simply put, employers are currently hiring from the smallest pool of unemployed job candidates than at any time in the 21st century. Moreover, many of the job seekers are holding out for jobs they are more passionate about.

For comparison, there were 1.5 unemployed Americans for every job opening in September 2007, prior to the Great Recession, a number that grew to 6.5 in July 2009 coming out of it.

Factors That Impact The Hiring Crisis

The hiring crisis facing business owners is based on myriad factors.


The Great Resignation, meanwhile, remains a major factor in this trend with quit rates at 2.7%,  the highest level relative to unemployment in three decades. While it is true, this means employers have more chances to poach talent, it also leaves them vulnerable to getting two-week notices of their own.

In response, companies have been implementing changes to boost retention rates, including increasing both salary and benefits and offering more flexibility to workers. Despite such efforts, one in five employed adults are actively applying for new positions, according to a Morning Consult survey. Workers in that study cited a desire for higher wages as the primary factor driving their job search.


Moreover, there is a national trend around “Quiet Quitting” which refers to employees doing their bare minimum job and no longer going above and beyond at the workplace. Workers have been becoming less engaged at work since the second half of 2021, according to a Gallup report, and quiet quitters now comprise about at least half of the U.S. workforce. Engagement is falling fastest among younger workers.

Such a trend can have a material impact on companies. Gallup estimates that a lack of engagement costs global employers $7.8 trillion in lost productivity.

The long-term impact of these trends will have on bottom lines remains to be seen but it puts a greater emphasis on recruiting top talent committed to the success of the organization. Ultimately, 50% of small business owners said it was harder to hire in the third quarter of 2022 than it was a year ago, according to a recent CNBC/SurveyMonkey Small Business Survey.

Amid concerns about a potential recession, however, workers may be losing some of the advantages gained in the past several years. The ability of employers to find and retain the best workers depends on many factors, including geography, as the economic situation and the talent pool vary widely from state to state.

Key Findings

To find the best states for hiring workers now, CareerCloud analyzed federal data in five categories including job openings, population growth, education levels, diversity, and the business tax climate. Here are some of our key findings:

Top States: Florida is the best state for hiring, followed by Washington, Delaware, Nevada, and Arizona.

Bottom States: West Virginia is the worst state for hiring, due to poor scores on population growth, education levels, diversity, and the job openings rate. Louisiana and Ohio are the second- and third- worst states for hiring, respectively.

Migration Matters: Eight of the top 10 states on our list are in the top quartile for population growth.