George W. Hammond, EBRC director and Eller research professor
Leisure and hospitality jobs remain down over the year
Arizona added 9,800 jobs over the month in April. That was another solid month of job growth after a revised gain of 9,400 in March. The preliminary data put March job gains at 8,700. The state unemployment rate (seasonally adjusted) dropped to 3.6%, down from 3.8% in March and below the U.S. at 3.9%. Arizona’s April rate was close to all-time lows.
Over the month job gains in April were driven by private education and health services (up 4,100); trade, transportation, and utilities (up 3,100); and financial activities (up 1,700). Those three sectors accounted for 90.8% of job gains in April. Also adding jobs were other services (up 900), government (up 500), professional and business services (up 400), information (up 100), and natural resources and mining (up 100). Jobs were down in construction (down 500) and leisure and hospitality (down 500).
Arizona added 64,600 jobs over the year in April, which translated into 2.0% growth. That outpaced the U.S. at 1.8%. Private education and health services; trade, transportation, and utilities; and government generated the most jobs. Together, those three sectors accounted for 98.0% of job gains. Construction, professional and business services, other services, and natural resources and mining also added jobs.
In contrast, leisure and hospitality dropped 7,900 jobs over the year. Also losing jobs were information (down 2,300), manufacturing (down 2,100), and financial activities (down 900).
Exhibit 1: Arizona Net Job Change (Thous.) and 2022 Annual Wages per Worker
The Phoenix MSA added 50,700 jobs over the year in April, for 2.1% growth. Phoenix accounted for 78.5% of statewide job gains. Private education and health services; trade, transportation, and utilities; and government dominated job gains. Leisure and hospitality, information, manufacturing, and financial activities all lost jobs over the year.
Exhibit 2: Phoenix MSA Net Job Change (Thous.) and 2022 Annual Wages per Worker
The Tucson MSA added just 2,300 jobs over the year in April, which translated into 0.6% growth. Tucson accounted for 3.6% of state gains. Private education and health services added the most jobs over the year, with 3,400. Manufacturing (up 900); construction (up 700); and trade, transportation, and utilities (up 600) also added a significant number of jobs.
Leisure and hospitality jobs declined 2,100 in April, followed by professional and business services, government, and information.
Exhibit 3: Tucson MSA Net Job Change (Thous.) and 2022 Annual Wages per Worker
Prescott MSA jobs rose 700 over the year in April, for 1.0% growth. Job gains were led by mining and construction, private education and health services, and government. Leisure and hospitality and professional and business services were down over the year.
Exhibit 4: Prescott MSA Net Job Change and 2022 Annual Wages per Worker
