DEPT OF COMMERCE: MAY UNEMPLOYMENT NUMBERS FOLLOW NATIONAL TRENDS, RISE ONE-HALF PERCENT

FROM THE DEPT OF COMMERCE

June 19, 2008

CONTACT: Pati Urias or David Drennon, 602-771-1163
http://www.azcommerce.com


PHOENIX, AZ - Arizona’s seasonally adjusted unemployment rate in May reflected national trends, rising one-half percent to 4.4% in May, from 3.9% in April. Still, Arizona’s jobless rate remains below the national level, which shows an adjusted figure of 5.5% for the month of May. The construction industry continued to show weakness, yet again losing the highest number of positions in the goods-producing industries, and government losing the most overall, largely attributed to the end of the school year.

Arizona’s economy lost 6,700 nonfarm jobs in May. The service-providing industries lost 3,900 jobs while the goods-producing cluster lost 2,800.

Seven of eleven major supersectors lost jobs, while four created positions.

Government lost 2,500 jobs largely in local education. Federal government added 400 jobs.

Professional and business services increased employment by 400 jobs. Professional, scientific and technical services’ loss of 2,100 (due to the end of the tax preparation season) was offset by a gain of 2,300 jobs in the administrative and support and waste sector.

Leisure and hospitality employment lost 1,000 jobs in May, largely due to a decrease in food services and drinking places (-1,000).

Educational and health services posted a gain of 900 jobs. The majority of the jobs were in health care and social assistance.

Construction (-2,200) lost the largest number of jobs among the goods-producing industries. Building construction was down (-900), as was specialty trades (-1,500). Heavy construction, however, gained 200. Construction was down by 12.7% from one year ago.

Financial activities grew by 200 jobs. Finance and insurance was flat, while real estate and rental and leasing increased by 200.

Manufacturing had a decrease of 500 jobs in May. Durable-goods manufacturing was up by 100 while non-durable goods manufacturing dropped by 600.

Information lost 100 jobs, all of which were in the reported telecommunications sector.

Natural resources and mining lost 100 jobs overall, while the reported sub-sector of metal ore mining gained 100.

Trade, transportation and utilities pared 2,300 jobs with retail trade losing 1,700. Nearly all retail trade sub-sectors lost employment in the month.

Other services had a gain of 500 jobs.

Conclusion:

Job growth in Arizona continued to drop in May, losing 6,700 jobs, a 0.3% decrease from last month. This is the second consecutive month of job losses with 12,200 jobs lost in April and May combined. Over the year employment dropped 0.6%.

During May, seven of the 11 supersectors lost jobs while four increased employment levels. The four industries reporting increases were financial activities, professional and business services, educational and health services and other services. Construction continued to show weakness due to the effects of the real estate and financial markets on Arizona’s economy. Manufacturing showed seasonally related decreases in non-durable goods.