In June, the non-seasonally adjusted civilian labor force in the Prescott MSA (Metropolitan Statistical Area) increased by 1,325, or 1.3% compared to the previous year. April and May did not perform as well, with the labor force shrinking slightly over the year in April and remaining nearly the same in May. On a seasonally adjusted basis, the labor force shrank in both April and May.

DEEPER DIVE: Here’s where the residential real estate market stands in 2025

INDUSTRY INSIGHTS: Want more news like this? Get our free newsletter here

In the Prescott MSA, non-seasonally adjusted resident employment increased slightly over the year in June by 0.7%, or 806, compared to the same month last year. In contrast, both April and May posted year-over-year decreases, falling by 970 (-0.9%) and 849 (-0.8%), respectively.  On a seasonally adjusted basis, employment fell in both April and May. At the state level, non-seasonally adjusted employment showed over the year increases throughout the second quarter.

Non-seasonally adjusted unemployment in the Prescott MSA rose by 519 (12.4%) over the year to 4,719 in June. April and May reported more significant increases in unemployment, growing by 524 (17.0%) to 3,603 in April and 860 (24.2%) to 4,413 in May. On a seasonally adjusted basis, unemployment remained at 4,060 in April and then rose to 4,182 in May. At the state level, Arizona showed increases in year-over-year unemployment throughout the second quarter.

The non-seasonally adjusted unemployment rate for the Prescott MSA came in at 4.4% in June, up 0.4 percentage points from 4.0% a year prior. April and May similarly showed increases over the year, rising by 0.5 percentage points in April to 3.4% and 0.9 percentage points in May to 4.2%. On a seasonally adjusted basis, the unemployment rate remained at 3.8% in April, then rose to 3.9% in May. For Arizona as a whole, the non-seasonally adjusted unemployment rate was 3.5% in April, 4.1% in May, and 4.5% in June.

Non-seasonally adjusted hourly earnings in the Prescott MSA posted year-over-year gains in the second quarter of 2025. April and May saw strong wage growth, with hourly earnings up 10.9% to $27.80 and 10.0% to $27.60, respectively. June saw a smaller gain of 4.3% to $26.8. Based on this rate, the estimated annual salary for a full-time worker is $55,744.

Seasonally adjusted total nonfarm employment in the Prescott MSA dipped slightly in the last two months but managed to dodge that trend with no growth in April. Employment remained the same over the month in April at 72,000, dipped 0.3% to 71,800 in May, then fell a further 0.7% to 71,300 in June. In comparison, Arizona employment grew in April with +14,100 jobs, then fell in both May (-3,300) and June (-8,400).

Non-seasonally adjusted total nonfarm employment in the Prescott MSA recorded year-over-year declines in the second quarter of 2025. In April, employment fell by 1.4% to 72,100, followed by a 1% decline in May to 72,000 and a 0.4% decline in June to 70,400.

Among industries in the Prescott MSA, State and Local Government posted the strongest year-over-year growth in June, increasing by 7.4% to 8,700. Other Services (+3.8%) and Private Education and Health Services (3.1%) also saw solid growth.

On the other hand, Manufacturing experienced the largest decline, falling 10.5% year-over-year to 3,400 jobs, followed by Federal Government, down 5.0% to 1,900. Other notable decreases included Trade, Transportation, and Utilities (-3.6%), Professional and Business Services (-2.7%), and Leisure and Hospitality (-2.0%). Employment levels in Mining, Logging, and Construction, Information, and Financial Activities were unchanged over the year.

Non-seasonally adjusted retail sales excluding food and gasoline in the Prescott MSA fell year-over-year in both April and May after strong first-quarter growth. In April, sales dropped by 0.2% to $262.0 million, and in May, sales declined 0.4% to $266.1 million.

In the Prescott MSA, non-seasonally adjusted housing permits showed mixed performance in the second quarter of 2025. Total permits rose in both April and June, showing increases of 27.8% to 271 in April and 147.4% to 287 in June. On the other hand, Permits fell in May by 25.5% to 137. Single-family permits were similarly mixed, showing losses in April and May but gains in June. After falling 39.7% in April to 111 and 26.2% in May to 124, single-family permits rose 25.9% in June to 141.