By Jonathan Eberle |
Arizona added 700 nonfarm jobs in August, a modest increase that ranked the state 31st nationally in monthly job growth, according to a new analysis by the Common Sense Institute (CSI). Nationally, the U.S. economy gained 22,000 jobs, while 18 states recorded employment losses.
On an annual basis, Arizona showed stronger momentum, adding 41,400 jobs over the past year, a 1.29% gain that placed it 15th in the nation. However, CSI noted that the state has shed 15,100 jobs since April 2025, marking the second-highest nominal job loss in the country during that period and the fifth worst relative decline at 0.46%. Arizona’s unemployment rate remained at 4.1% in August, unchanged for six straight months. Labor force participation also held steady at 61.4%, below its pre-pandemic level of 62.2%.
Manufacturing led the way in August with 1,100 new jobs, a 0.6% increase that ranked Arizona third nationwide for monthly manufacturing growth. Despite the improvement, the sector remains down 1,100 jobs compared to last year. Mining and Logging posted the strongest year-over-year growth, adding 1,500 jobs, or 10.2%. By contrast, Leisure and Hospitality lost 0.6% of its workforce last month, while the Information sector continues to lag behind with a 2.7% year-over-year decline.
Average hourly wages in Arizona rose to $34.91, up 4.1% from August 2024. Adjusted for inflation, real wages increased 2.7% over the past year—outpacing the national average of 0.7%. Still, CSI’s report highlighted longer-term challenges: since April 2020, real wages in the state have fallen 4.3%.
Overall, the report points to a mixed picture for Arizona’s labor market: modest gains in key industries and wage growth, offset by lingering job losses since the spring and participation rates that remain below pre-pandemic levels.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
