A new Common Sense Institute labor market analysis, based on the latest BLS data, finds that Arizona outperformed the nation in job growth in June, even as the state’s unemployment rate and labor force participation moved in the wrong direction.
This performance should be taken with caution given the large revision to May’s job growth figures, which revised a 2,000 job gain in the state to a 1,600 job decline, notes the Common Sense Institute (CSI).
Among the key findings was the fact that Arizona added 2,400 nonfarm jobs in June, ranking 22nd nationally for month-over-month job growth.
According to CSI, Arizona continues to outperform the nation in annual job growth. The state added 23,600 jobs (+0.72%) over the past year, exceeding the national growth rate of 0.32% and ranking 15th among all states and Washington, D.C.
Arizona’s unemployment rate rose to 4.9%, its highest level since the pandemic and the 10th-highest among all states and Washington, D.C.
The Labor force participation continues to decline. Arizona’s participation rate fell for the fifth consecutive month to 60.3%, down 1.8 percentage points from one year ago.
Manufacturing employment weakened in June (-0.52%), following a large negative revision to last month’s figures which turned a 600 job gain to a 1,200 job loss for the month of May. Over the past year, the manufacturing sector has shed 1,800 jobs (-0.93%) in the state.
Arizona’s mining sector remained the state’s fastest-growing industry, adding 1,400 jobs (+8.92%) over the past year, while Education and Health Services grew 3.71%, outpacing national growth.
Large revisions to May’s employment estimates highlight the volatility of monthly labor data. Arizona’s initially reported gain of 2,000 jobs was revised to a loss of 1,600 jobs, one of the largest downward revisions in the country.
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