Arizona Unemployment Numbers Stable In January

Phoenix, AZ – Arizona’s seasonally adjusted unemployment rate was 4.3% in January, essentially unchanged from a revised rate of 4.2% in December 2007. At the national level, the adjusted unemployment rate also remained relatively level at 4.9%.

Average annual employment growth in 2007 was 1.2%, representing an increase of 31,500 jobs over the 2006 level.

Arizona’s economy lost a less than seasonally expected 46,000 nonfarm jobs in January for a level of 2,647,500 jobs. The over-the-year gain in January 2008 (Jan. 2007 – Jan. 2008) was 16,800 (0.6%). Ten of 11 major industries reported employment losses in January. Jobs declined in both goods-producing (-5,800) and in service-providing industries (-40,200). Private sector employment has shown slight over-the-year job losses for the last five months. What follows is a rundown from each sector:

Construction (-5,300) lost the largest number of jobs in the goods-producing industries, mostly in specialty trades (-2,800).

Professional and business services lost 10,000 in January. Employment services, business support services and services to buildings and dwellings all showed losses in January.

Leisure and hospitality pared 5,200 jobs. Accommodation and food services had the largest decrease
(-4,800).

Financial activities employment declined by 1,900. Finance and Insurance was down by 400 while real estate and rental and leasing lost 1,500 jobs.

Educational and health services trimmed a seasonally expected 3,900 jobs with the majority of the losses occurring in educational services (-2,300). The hospital sector was the only sector that gained jobs within this industry (+200).

Information had a loss of 500 jobs. Telecommunications, which decreased by 200, continued to show fluctuations in employment levels.

Other services trimmed 900 jobs.

Government employment declined by a less-than-seasonally expected 8,600 jobs. The bulk of the losses occurred in local education (-4,800), similar to losses in private education.

Natural resources and mining was the only major industry to gain jobs (+100). Job levels in mining have shown continued growth during the past few years.

Manufacturing experienced a loss of 600 jobs. The majority of losses occurred in durable goods (-400). Durable goods had losses in the fabricated metal, and aerospace products sectors
(-200 total jobs).

Trade, transportation and utilities pared the second largest number of jobs (-9,200) for a supersector. Losses were spread among all component sectors with building materials and garden equipment dealers showing the only increase (+300). Seasonally expected post-holiday losses in retail trade accounted for the majority of the decline (-7,100).

Conclusion:
Arizona’s economy showed fewer post-holiday season related losses in January. The seasonally adjusted unemployment rate was 4.3%. Natural resources and mining was the only major industry to show a gain. Total job losses; however, were below the 10-year-average. A slowing economy was evident in January.

Note: The release of January 2008 employment numbers includes benchmarked, or revised, data from both the establishment and household surveys. Nonfarm payroll employment was revised for 2006 and 2007, while labor force data was benchmarked back to 2003. For more information on the benchmarking process, see Thursday’s Arizona Workforce Employment Report.

Source: Arizona Dept. of Commerce

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