Arizona Construction Sector Snaps Back from Losing Streak, Adds 2,900 Jobs in August

Arizona (September 29, 2025) — Arizona’s construction industry roared back in August, reversing months of losses with a gain of 2,900 jobs, according to the latest report from the Arizona Office of Economic Opportunity. The rebound put construction among the state’s top job-gaining sectors for the month.

Arizona’s overall job market also showed strength. The state added 42,100 nonfarm jobs month-over-month on a not-seasonally adjusted basis, compared with a pre-pandemic August average of 54,000 jobs. Year-over-year, nonfarm employment rose by 38,500, or 1.2 percent. The seasonally adjusted unemployment rate held steady at 4.1 percent, while the national rate ticked up to 4.3 percent. One year earlier, Arizona’s rate was 3.7 percent, compared to a national rate of 4.2 percent.

Private employers were responsible for 18,700 of the new positions, in line with the pre-pandemic August average of 18,400 in the private sector. Health care and social assistance led the way with 5,300 jobs, followed by professional and business services with 4,700. The government added 23,400, mostly in local education, though that remains far below the pre-pandemic August average of 35,600.

Out of 12 sectors tracked, nine expanded in August. Construction’s 2,900 jobs ranked fourth overall and third among private industries. Information, leisure, and hospitality each lost 100 jobs, while other services held flat.

Compared to last year, health care and social assistance again set the pace with a gain of 23,500 jobs. Construction came in third with 4,800. Government employment dropped by 5,200, marking the steepest annual decline.

Construction employment statewide now totals 228,700, up from 223,900 the previous year. Within the industry, building construction reached 55,100 jobs after a 1,500 monthly increase and a 5,800-year-over-year gain. Heavy construction ticked up by 200 to 26,100, only 100 higher than last August. Specialty trades added 1,200 jobs for the month, bringing the segment to 147,500, though still 1,100 below the previous year’s level.

Metro Phoenix was the clear driver of growth, adding 2,700 jobs in August to reach 183,300, compared to 179,600 a year earlier. Metro Tucson gained 100 jobs to stand at 20,400, although that represents a year-over-year loss of 500 jobs.

In smaller markets where mining and construction are reported together, totals held steady for the second consecutive month. Yuma reported 4,100 jobs, Flagstaff 3,100, Prescott–Prescott Valley 7,200, Lake Havasu City–Kingman 4,600, and Sierra Vista–Douglas 2,100.

See full report.pdf here.