A new report has found that Arizona continued to add jobs at the end of 2025, outperforming national job growth, while signs of softness emerged in manufacturing employment and wage growth.
According to the Common Sense Institute report, Arizona added 6,400 nonfarm jobs in December, a 0.20% monthly increase, ranking sixth fastest in the nation. Over the past year, Arizona added 24,400 jobs (+0.75%), more than double the national growth rate of 0.37%.
The report found that Arizona continued to add jobs in December (+6,400), extending more than a year of moderate but consistent employment growth.
However, the state lost 2,600 manufacturing jobs year-over-year, with the sector down 1.3% and employment falling to its lowest level of 2025.
Arizona’s unemployment rate remained at 4.3%, while labor force participation rose to 61.9%, the highest level since October 2023.
Construction added 3,900 jobs in December, and Education and Health Services accounted for more than two-thirds of job growth over the past year.
Average hourly wages declined $0.25 in December (-0.71%), though wages remain 3.5% higher than a year ago, with real wages up 1.3%.
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