George W. Hammond, EBRC director and Eller research professor
Tucson suffered job losses in August, driven by state government education
Arizona seasonally-adjusted jobs dropped by 2,500 over the month in August, after a revised 3,300 increase in July. The preliminary estimate suggested that the state added 3,000 jobs over the month in July.
Over-the-month job losses were led by government, with a decline of 7,900. In turn, those losses were concentrated in state government (in Tucson). Also contributing to losses were other services (down 1,000); financial activities (down 800); manufacturing (down 800); and construction (down 400).
Jobs increased in August in leisure and hospitality (up 4,400); private education and health services (up 3,000); professional and business services (up 600); information (up 300); and natural resources and mining (up 100). Employment was stable in trade, transportation, and utilities.
Arizona’s seasonally-adjusted unemployment rate was steady at 3.4% in August, same as July. That was well below the U.S. at 4.2%.
Arizona jobs rose 66,100 over the year in August, which translated into 2.1% growth. That exceeded the national average of 1.5%.
Private education and health care added the most jobs in August, followed by professional and business services; trade, transportation, and utilities; construction; financial activities; other services; natural resources and mining; leisure and hospitality; and government (Exhibit 1). Jobs were down over the year in manufacturing and information.
Exhibit 1: Arizona Net Job Change (Thous.) and 2023 Annual Wages per Worker
The Phoenix MSA accounted for the bulk of state job gains in August, at 82.6%. Over the year, the Phoenix MSA added 54,600 jobs. That translated into 2.3% growth.
As Exhibit 2 shows, job gains were dominated by private education and health services; professional and business services; trade, transportation, and utilities; and government. Jobs were down over the year in manufacturing; leisure and hospitality; and information.
Exhibit 2: Phoenix MSA Net Job Change (Thous.) and 2023 Annual Wages per Worker
Jobs in the Tucson MSA were down 1,300 over the year in August. That translated into a drop of 0.3%.
Job losses in Tucson were concentrated in government, particularly state government education (Exhibit 3). That likely reflected, at least in part, the financial difficulties at the University of Arizona. Professional and business services and information also lost jobs in August.
Those losses were partially offset by gains in private education and health services, as well as smaller gains across a number of industries.
Exhibit 3: Tucson MSA Net Job Change (Thous.) and 2023 Annual Wages per Worker
Job growth was better in the Prescott MSA in August, with an increase of 800 over the year. That translated into 1.1% growth.
Job gains were fairly evenly spread across government; private education and health care; trade, transportation, and utilities; mining and construction; financial activities, and other services (Exhibit 4). Jobs were down in professional and business services and leisure and hospitality. Jobs were stable in manufacturing and information.
Exhibit 4: Prescott MSA Net Job Change and 2023 Annual Wages per Worker
