The U.S. unemployment rate changed little in July at 4.2% while total nonfarm payroll jobs increased by 73,000, according to the Bureau of Labor Statistics’ August 1st employment situation summary. Job gains occurred in ambulatory health care services (+34,000), individual and family services (21,000), and hospitals (16,000). Employment losses occurred in federal government (-12,000). Employment showed little or no change in other major industries. Average hourly earnings for employees on nonfarm payrolls increased by 12 cents (0.3%) to $36.44. The average workweek for private nonfarm employees edged up by 0.1 hours to 34.3 hours. Economic revisions for May and June were abnormally large, with nonfarm employment revised down in May by 125,000 to +19,000 and in June by 133,000 to +14,000. –Delaney O’Kray-Murphy
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Compensation costs for nondefense workers increased 0.9%, seasonally adjusted, in the three months ending June 2025, according to the U.S. Bureau of Labor Statistics Employment Cost Index Summary. Wages and salaries increased 1.0% and benefit costs increased 0.7% from March 2025. In the 12 month ending June 2025, compensation costs for civilian workers increased 3.6%, wages and salaries increased 3.6%, and benefit costs increased 3.5%. Private industry worker compensation increased by 3.5% over the year, with wages and salaries rising by 3.5% and benefits increasing by 3.4%. Inflation adjusted, private industry wages increased 0.8% over the year in June. Within the private industry, compensation costs for union workers increased by 4.3% and for non-union workers by 3.4%. State and local government compensation increased 4.0% over the year in June, with wages and salaries rising 3.9% and benefits increasing 4.1%. -Delaney O’Kray-Murphy
The June 2025 release of the National Job Openings and Labor Turnover (JOLTS) report stated that the number of job openings in the U.S. was little changed at 7.4 million, with a job openings rate of 4.4%. The number of job openings increased in retail trade (+190,000). The number of job openings decreased in accommodation and food services (-308,000), and healthcare and social assistance (-244,000).
Nationally, the number of hires changed little at 5.2 million. The hires rate was 3.3% in June, 3.4% in May, and 3.5% in April. The number of total separations in the nation changed little at 5.1 million, with a rate of 3.2%. The number of quits changed little at 3.1 million with a rate of 2.0%. The number of layoffs and discharges were unchanged at 1.6 million and a rate of 1.0%. Layoffs and discharges increased in mining and logging (+5,000). -Alex Jaeger
According to the July 23rd State Job Openings and Labor Turnover (JOLTS) report, the job openings rate decreased in one state, increased in three states, and were little change in all other states. The job openings rate for Arizona was 4.3% in May, 3.7% in April, and 5.1% in March. The number of job openings decreased in one state, increased in three states, and changed little in all other states. The largest increase in the job openings level was in New York (+84,000). The largest decrease in the number of job openings occurred in New Jersey (-35,000). Hire rates decreased in three states, increased in eight states and were little changed in all other states. The hire rate for Arizona was 4.3% in May, 3.2% in April, and 3.2% in March. The number of hires decreased in three states, increased in ten states, and changed little in all others. The largest increases in hire levels were seen in Pennsylvania (+45,000) and Arizona (+34,000). The number of layoffs and discharges decreased in five states, increased in one state and was little changed in all other states. The largest decrease in the layoffs and discharges level occurred in Florida (-66,000). Nationally, the layoffs and discharge rates were little changed. -Alex Jaeger
In June, metropolitan unemployment rates were higher in 217 of the 387 metropolitan areas, lower in 147, and unchanged in the remaining 23. The June non-seasonally adjusted unemployment rates for the Tucson and Phoenix metropolitan areas came in at 4.6% and 4.0%, respectively. Yuma had the highest unemployment rate in Arizona at 15.2%, while Phoenix had the lowest. Sioux Fralls, SD-MN, had the lowest unemployment rate at 1.8%, followed by Rapid City, SD, at 1.9%. El Centro, CA, had the highest rate at 18.9%. The largest over-the-year unemployment rate increase occurred in Yuma, AZ, with a 2.5 percentage point change, while Kanakee, IL, had the largest decline of 1.4 percentage points. -Delaney O’Kray-Murphy
June building permits for Arizona totaled 4,553, 14.9% lower than the same month a year ago on an unadjusted basis. Over the year, single-family permits fell 11.4% to 2,984. The Phoenix-Mesa-Chandler metropolitan area recorded 3,435 total and 2,139 single-family permits for June, down 16.7% and 7.1% over the year, respectively. Likewise, the Tucson metropolitan area posted declines in building permits over the year with total permits at 373, an 18.7% drop, and single-family permits at 322, a 20.1% decrease. Four counties had an increased number of single-family building permits compared to the same month last year – Apache, Graham, Maricopa, and Yavapai. Greenlee county had no change, and all others experienced a drop in single-family permits. –Valorie Rice
House prices in Phoenix changed little over the year in May at 0.9%. The national house price gain during the same period was 2.3%, down from 2.7% the month prior. The S&P CoreLogic Case-Shiller Index 20-city composite posted a 2.8% increase over the year in May, down from April’s change of 3.4%. New York remained the metropolitan area with the highest annual gain in house prices at 7.4%, followed by Chicago at 6.1%. In May, the number of metropolitan areas with neutral or negative house price changes rose to four, up from two in April (Tampa and Dallas), with Tampa recording the largest annual decline at -2.4%. -Valorie Rice
The U.S. direct investment abroad position, or cumulative level of investment, increased by $206.3 billion to $6.83 trillion at the end of 2024, according to statistics from the U.S. Bureau of Economic Analysis. The rise was led by an $88.4 billion increase in European investments, primarily in Luxembourg and Germany. By industry, manufacturing affiliates experienced the largest increases, led by computer and electronic product manufacturing.
Foreign direct investment in the United States position increased $332.1 billion to $5.71 trillion at the end of 2024. The increase was led by a $204.7 billion increase from Europe, including $52.9 billion from the U.K. and a $39.7 billion increase from Germany. By industry, manufacturing investment increased the most. -Delaney O’Kray-Murphy
Real gross domestic product (GDP) increased at an annual rate of 3.0% in the second quarter of 2025, according to the advanced estimate released by the Bureau of Economic Analysis. The increase in real GDP primarily reflects a sharp decrease in imports, which are a subtraction from GDP. These movements were partly offset by decreases in investment and exports. Within imports, the decrease primarily reflects a reduction in goods, led by nondurable consumer goods, except food and automotive (mainly medicinal, dental, and pharmaceutical preparations). The price index for gross domestic purchases increased 1.9% in the second quarter, compared with an increase of 3.4% in the first quarter, and the personal consumption expenditures (PCE) price index increased 2.1%, compared with an increase of 3.7%. Excluding food and energy, the PCE price index rose 2.5%, compared with an increase of 3.5% in the first quarter. -Delaney O’Kray-Murphy
