DEPT OF COMMERCE: ARIZONA UNEMPLOYMENT UP IN JUNE; STATE’S NUMBERS REMAIN BELOW NATIONAL AVERAGE

FROM THE DEPT OF COMMERCE

July 17, 2008

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


PHOENIX, AZ - Arizona continued to lose jobs in the month of June, pushing the state’s unemployment rate up four-tenths of a percent to 4.8%, as the state continues to see the impact of a housing-related decline.  While the state’s jobless numbers have increased significantly since the beginning of the year, Arizona’s rate remains below the national average of 5.5%.   

While the economy continues to show signs of slowing, not all industries are equally affected.          

Nonfarm jobs in Arizona declined by 49,200 in June.  This greater than seasonal decline was caused by continued cyclical losses in the goods-producing industries, with mostly seasonal losses occurring in the service-providing clusters.   

Service-providing industries (-48,700 jobs) reduced employment by well below than expected for June (0.1% vs. a 3.3% ,over-the-year10-year average), while the goods-producing industries posted losses for the tenth consecutive month.  Job losses occurred in both public and private sectors.   

Construction pared 700 jobs in June.  This industry has shown job losses for ten consecutive months.  Heavy construction (+100) was the one sector that added jobs.   

Manufacturing jobs increased in June and showed positive growth results among component sectors, excluding nondurable goods which remained flat.  Fabricated metal, computer and electronic parts and aerospace products and parts each showed a gain of 100 jobs.   

Natural resources and mining lost 100 jobs. 

 

Government jobs were reduced overall by 41,000 last month, most of which were in the area of education.   

Trade, transportation and utilities declined by 2,100 jobs.  Over the year losses have continued for the third consecutive month.  The loss of 1,100 in wholesale trade was well over the 10-year average for June; usually this sector gains jobs during the summer.     

Leisure and hospitality pared 4,200 jobs in June.  As expected, this industry continued to show seasonal related losses.  

Financial activities showed strength, increasing positions by 200, with the exception of credit intermediation and related activities subsector, which was down by 100.   

Professional and business services added 200 jobs in June.   

Educational and health services declined by 2,400 jobs; health care was relatively flat, while education services accounted for the bulk of the losses.    

Information lost 500 jobs.  This represents the third consecutive month of losses for this industry.  

Other services spread out over a variety of different sectors, added 1,100 jobs.   

Conclusion:

 

Arizona’s unemployment rate (4.8%) continued to stay below the national average of 5.5% in June.  Overall, Arizona’s economy experienced a greater than seasonally expected loss of jobs.  Aside from the typical seasonal losses that are common this time of year, figures for June include greater than normal losses in construction, manufacturing, retail trade.  Nonfarm jobs have declined 1.2% over-the-year. Manufacturing showed some strength against recent losses by adding jobs in June.  As the state continues to reel from the bust of the housing frenzy, the economy is slow but affecting each job sector in a different way.