Arizona Unemployment Plummets Half a Point YoY as Healthcare Sees Job Surge

The unemployment rate in Arizona has declined by half a percent compared to last year, as highlighted in a recent year-end report from the Arizona Office of Economic Opportunity. Currently, Arizona’s unemployment rate stands at 3.7 percent, slightly higher than October’s figure but notably lower than the national average of 4.2 percent.

Over the past year, the state successfully added 59,800 jobs, marking a 1.8 percent increase since 2023. The healthcare and social assistance sectors exhibited the most significant expansion, contributing 26,200 new jobs. Other industries, including government, trades and transportation, and professional and business services, also experienced substantial growth.

Healthcare jobs in Arizona have surged by 18 percent since 2022, while the national average stands at 13 percent. These trends reflect shifting demographics and a growing demand for healthcare services, according to Doug Walls, the Director of Arizona Labor Market Information.

Interestingly, 85 percent of the job growth this year occurred within the private sector. However, not all sectors fared well; construction, information, and manufacturing reported notable job losses compared to last year.

Additionally, Arizona’s total seasonally adjusted workforce grew by roughly 30,000 individuals, an increase of 0.8 percent since 2023. Despite the evolving job landscape, Arizona ranks 25th in the nation regarding unemployment rates, placing it squarely in the middle of the national spectrum.