Tucson July Unemployment Drops 0.3% – But US Wages Down 23% from 2008

The seasonally adjusted unemployment rate for the state of Arizona increased one-tenth of a percentage point from 6.9% in June to 7.0% in July.  The U.S. seasonally adjusted unemployment rate also increased one-tenth of a percentage point from 6.1% in June to 6.2% in July.

A year ago, the Arizona seasonally adjusted rate was 8.1% and the U.S. rate was 7.3%.  Arizona shed 10,400 Nonfarm jobs (-0.4%) in July.  Losses were recorded within Government, which is typical in July.   Seasonal losses within Government were primarily in Local and State Education. The Private Sector recorded small gains (200 jobs), in a month that has historically (’04-’13) recorded losses (-12,900 jobs).  Nonfarm job losses in July were lower than the post-recession (‘09-‘13) average loss (-26,500 jobs) as well as the 10-year (‘04-‘13) average for July (-26,400 jobs).

Primarily due to the Yuma region that had a huge increase in unemployment from 23.6% in June to 29.2% in July (+2.4%). All other sectors were down, Flagstaff (-0.1%); Lake Havasu (-.2%); Phoenix & Pinal County (-0.2%); Prescott (-0.3%); and Tucson (-0.3%) from the prior month seasonally adjusted.

The unadjusted rate for Tucson was 6.6% in June and 6.9% in July, a decline of (-0.3%) three-tenths of a percent. The Tucson region added 3,100 jobs month over month, to show a 0.4% job growth in July.

Six of the eleven major sectors in the state had job gains while five recorded job losses.  Trade, Transportation, and Utilities recorded the largest over-the-month job gain (2,600 jobs), an atypical gain when compared with the post-recessionary-average (‘09-‘13) loss of 1,700 jobs and the 10-year (’04-’13) average loss of 1,000 jobs.  Professional and Business Services also recorded atypical gains (1,500 jobs) when historically (’04-’13) PBS has lost 1,200 jobs in July.  Other sectors to record job gains include Educational and Health Services (1,100 jobs), Other Services (900 jobs), Information (200 jobs), and Natural Resources and Mining (200 jobs).  Government recorded the largest job loss (-10,600 jobs).  The other sectors with job losses include Leisure and Hospitality (-3,900 jobs), Financial Activities (-1,200 jobs), Construction (-1,100), and Manufacturing (-100 jobs).

Arizona added 59,400 Nonfarm jobs (2.4%), the largest over-the-year gain of 2014.  Of these gains, the Private Sector added 56,400 jobs (2.7%), and Government added 3,000 jobs (0.8%).  This marks the 36^th month of over-the-year Private Sector growth at or above 2.0%.  Ten of the eleven major sectors reported gains with one reporting a loss.  Education and Health Services reported the largest over-the-year gain (19,900 jobs) followed by Leisure and Hospitality (11,800 jobs).  Other major sectors which reported job gains include: Professional and Business Services (11,000 jobs), Trade Transportation and Utilities (10,200 jobs), Financial Activities (7,600 jobs), and Government (3,000 jobs). Other Services (1,200 jobs), Manufacturing (500), Natural Resources and Mining (100 jobs) and Information (300 jobs) had small gains.  Construction was the only industry to record job losses, shedding 6,200 jobs.

The Arizona Unemployment Report followed a report from the US Conference of Mayors earlier in the week announcing that jobs are paying 23% less today that they did before 2008 recession.

In total, the report found $93 billion in lost wages. Jobs lost during the recession paid an average $61,637. As of 2014, jobs in the same sectors paid an average of $47,171 annually.

“Under a similar analysis conducted by the Conference of Mayors during the 2001-2002 recession, the wage gap was only 12% compared to the current 23%–meaning the wage gap has nearly doubled from one recession to the next,”  stated the Conference of Mayors in a statement.

The report also found that 73% of metro area households earn salaries of less than $35,000 per year.