Arizona Hits Lowest Unemployment Rate since October 2008 – 7.6%

The seasonally adjusted unemployment rate in Arizona dropped two-tenths of a percentage point from 7.8% in November to 7.6% in December, the lowest unemployment rate since October 2008. The U.S. unemployment rate dropped three-tenth of a percentage point from 7.0% in November to 6.7% in December. A year ago the Arizona rate was 7.9% and the U.S. rate was also 7.9%.  Arizona gained 6,900 Nonfarm jobs (0.3%) in December.  Over-the-month gains are typical in December, which has recorded only two losses since 1990 (1990 and 2008). The December job gain was slightly above the ten-year (’03-’12) average (6,700 jobs) and above the post-recessionary (’09-’12) average (3,600 jobs) gains.  The Private Sector accounted for all employment gains in December, adding 11,100 jobs (0.5%).  Government lost 4,200 jobs, with losses occurring within State       Education (-2,600 jobs) and Local Education (-2,500 jobs).  Seasonal job losses in Government are typical in December as schools break for the holidays.

Over the month, Trade, Transportation and Utilities recorded a job gain of 5,600 jobs, slightly below the ten-year (’03-’12) average gain of 5,700 jobs.  Education and Health Services added 2,400 jobs.  This was the largest December job gain for this sector since 2006 and more than the ten-year (’03-’12) average gain of 1,500 jobs.  Financial Activities added 2,200 jobs, nearly double the ten-year average (’03-’12) gain of 1,200 jobs.  Professional and Business Services gained 900 jobs, below the ten-year (’03-’12) average gain of 1,700 jobs.  Information (700 jobs), Leisure and Hospitality (300 jobs), and Other Services (100 jobs) also reported gains.  Government reported a loss of 4,200 jobs.  Over-the-month Government losses in December are typical and were recorded  in State  Education (-2,600 jobs) and Local Education (-2,500 jobs) in preparation for the winter break.  Construction lost 900 jobs from Buildings (-800 jobs) and Heavy (-700 jobs) Construction.  Specialty Trades recorded  its first December gain since 2005, adding 600 jobs.  Manufacturing lost 200 jobs.  Natural Resources & Mining remained unchanged over the month.

Over the year in December, 49,600 Nonfarm jobs were added to Arizona payrolls, an increase of 2.0%.  The Nonfarm employment growth rate for calendar year 2013 was also 2.0%.  Job gains (2.6%) in the Private Sector (54,000 jobs) were offset by the losses (-1.0%) in Government (-4,400 jobs).  Eight of the eleven major sectors reported gains with three reporting losses.  Trade, Transportation and Utilities reported the largest over-the-year gain of 15,100 jobs (3.1%) since September 2007.  Education and Health Services added 12,800 jobs (3.4%) followed by Financial Activities which added 10,400 jobs (5.8%).  Other major sectors with job gains include: Professional and Business Services (6,600 jobs), Leisure and Hospitality (6,400 jobs), Construction (4,900 jobs), Information (300 jobs), and Natural Resource and Mining (100 jobs).  Government (-4,400 jobs), Manufacturing (-2,500 jobs), and Other Services (-100 jobs) reported job losses.

Get detailed information, graphs and charts on Arizona data at www.azstats.gov