Arizona added nearly 57,000 jobs year-over-year in 2024 as Arizona job growth continues, according to an analysis.
Arizona added 3,400 seasonally-adjusted jobs over the month in December, similar to revised job growth in November of 3,500. The preliminary November data put growth at 4,100 jobs.
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In December, job gains were driven by trade, transportation and utilities (up 2,000); professional and business services (up 1,500); government (up 1,300); and other services (up 800). Leisure and hospitality and natural resources and mining jobs were also up slightly.
Jobs were down in December in construction (down 1,800); financial activities (down 400); and private education and health services (down 300). Jobs were stable over the month in manufacturing and information.
Arizona’s seasonally-adjusted unemployment rate ticked up to 3.8% in December, up from 3.7% in November. The state’s December rate was a bit below the U.S. at 4.1%.
As Exhibit 1 shows, Arizona’s labor market remained tight in December, with the unemployment rate still very close to all-time lows. A tight labor market is not unambiguously good or bad. From the employer side, tight labor markets can present challenges in hiring and retaining workers. From the employee side, tight labor markets can present opportunities for higher pay and new job opportunities.
Exhibit 1: Arizona and U.S. Unemployment Rates, Seasonally Adjusted, Percent
Arizona jobs increased by 56,900 over the year in December, according to the preliminary data. That translated into 1.7% growth, which outpaced the U.S. at 1.4%, but was relatively soft compared to performance earlier in the year.
As Exhibit 2 shows, private education and health services generated the most jobs, followed by government; trade, transportation, and utilities; and professional and business services. Jobs were down in construction, manufacturing, and information.
For the twelve months ending in December, Arizona jobs were up 2.1% from 2023, again outpacing the U.S. at 1.6%. Keep in mind that employment data for the last few months of 2023 and all of 2024 are preliminary and will be revised in early March.
Exhibit 2: Arizona Net Job Change (Thous.) and 2023 Annual Wages per Worker
Phoenix MSA jobs were up 33,500 over the year in December, for 1.4% growth. That accounted for 58.9% of state gains. The pattern of job gains across industries was similar to the state (Exhibit 3).
According to the preliminary data, for the twelve months ending in December, Phoenix MSA jobs were up 2.1%. That matched the state.
Exhibit 3: Phoenix MSA Net Job Change (Thous.) and 2023 Annual Wages per Worker
Tucson MSA jobs were up 4,000 over the year in December, which translated into 1.0% growth. As Exhibit 4 shows, Tucson job gains were driven primarily by private education and health services, with smaller contributins from other services; leisure and hospitality; financial activities; natural resources and mining; trade, transportation, and utilities; and government. Jobs were down in professional and business services; construction; and information.
According to the preliminary data, for the twelve months ending in December, Tucson MSA jobs were up 3,600 for 0.9% growth.
Exhibit 4: Tucson MSA Net Job Change (Thous.) and 2023 Annual Wages per Worker
Prescott MSA jobs were up 700 over the year in December, for 1.0% growth. As Exhibit 5 shows, job gains were driven by government, with smaller contributions from private education and health services and other services. Jobs were down in mining and construction and professional and business services.
According to preliminary estimates, for the twelve months ending in December, Prescott MSA jobs were up 1,000. That translated into 1.4% growth.
Exhibit 5: Prescott MSA Net Job Change and 2023 Annual Wages per Worker
If your business or organization requires more timely and in-depth forecast data and analysis, find out about the benefits of joining EBRC’s Forecasting Project and email EBRC director George Hammond at ghammond@arizona.edu.
