DEPT OF COMMERCE: ARIZONA UNEMPLOYMENT IN JULY RISES SLIGHTLY, LOSS OF JOBS SEASONALLY EXPECTED

FROM THE DEPT OF COMMERCE

August 14, 2008

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


(Phoenix, AZ) – Arizona’s seasonally adjusted unemployment rate for the month of July rose three-tenths of a percent from June’s 4.8% to 5.1%, following national trends as the economy continued to slow.  Nationally, the seasonally adjusted unemployment rate increased to 5.7% in July from 5.5% in June.

  The encouraging news is that job losses remained at near seasonally-anticipated levels.  It is typical for unemployment numbers to be higher in July, as the school year is out of session.   

Nonfarm jobs in Arizona lost 37,500 jobs in July.    Service-providing industries (-34,500 jobs) reductions were near the ten-year average for July (-1.5%).  The goods-producing industries posted a loss (3,000) for the eleventh consecutive month.   

Construction jobs decreased 3,000 in July.  This industry has shown job losses for eleven consecutive months.  Heavy construction was flat.  Specialty trades lost 2,100.

  Manufacturing lost 100 jobs in July.  



Natural resources and mining gained 100 jobs.  This was the only over-the-month reported increase for any major industry in July.

  Government job reductions numbered 11,300 in July.  These losses were mostly seasonal and concentrated in state government education (-1,000 jobs) and local government education (-9,600 jobs).  Federal government lost 100 jobs.  

Trade, transportation and utilities decreased by 4,000 jobs.  Over the year losses have continued for the fourth consecutive month.  While wholesale trade had a slight gain of 100 jobs, the retail trade sector lost 3,900 jobs.  The transportation, warehousing and utilities sectors reported a reduction of 200 jobs.   

Leisure and hospitality lost 8,400 jobs in July.  As expected, this industry showed seasonal related losses.   

Financial activities pared 1,000 jobs with losses being spread across all sectors.   

Professional and business services reductions totaled 3,300 with jobs being lost in all reported sectors.   

Educational and health services employment levels were decreased by 3,100 jobs.  These losses were concentrated in private educational services (-2,700 jobs) and social assistance (-700 jobs).  The health care subsector added 300 jobs.

  Information lost 300 jobs.



Other services had a loss of 3,100 jobs. 



Conclusion:

The most encouraging sign in the July 2008 employment figures was that over-the-month nonfarm job losses (-37,500) were near seasonally anticipated levels.  Arizona’s seasonally adjusted rate of unemployment increased to 5.1 percent in July from 4.8 percent in June.  The nation followed a similar pattern with the national unemployment rate increasing to 5.7 percent in July up from 5.5 percent in June.