By Staff Reporter |
The labor market is on a continued decline in Arizona, per the latest federal data reporting for March.
Arizona’s reported numbers marked one of the worst months of decline in the labor market nationwide, according to an analysis published this week by the Common Sense Institute (CSI) in its review of Bureau of Labor Statistics (BLS) data for March.
CSI stated in a press release that the BLS data indicated Arizona’s labor market had exhibited an increased divergence from national trends this year: slowing employment growth, rising unemployment, and weaker wage growth. Overall, CSI said these behaviors indicated the state would be enduring a tougher economic environment.
Arizona recorded its first monthly job loss of this year, losing around 2,600 nonfarm jobs. This caused the state to be placed 12th in terms of worst employment performance nationwide. The state also lost 300 manufacturing jobs, bringing the year-over-year total to 1,300 jobs lost, and 1,600 trade, transportation, and utilities jobs, bringing the year-over-year total to 6,200 jobs lost.
Arizona and 15 other states experienced month-over-month job losses. March marked the seventh consecutive month of year-over-year job losses for Arizona.
“[T]he confluence of a falling labor force participation rate and rising unemployment rate further point to a souring labor market in the state – a trend we highlighted in the previous Jobs and Labor Force Update,” stated the CSI report.
The nation gained 178,000 jobs in March, overcoming the loss of 133,000 jobs in February.
Arizona had a middling ranking year-over-year for job growth nationally (36th) and a lower ranking year-over-year for hourly wage increases (44th). The jobs ranking improved slightly from earlier this year (43rd).
Arizona has been losing jobs year-over-year since last August, warned CSI, while the growth of jobs has slowed steadily since 2022.
In the latter dataset, Arizona hourly wages increased nearly two percent year-over-year. Real wages rose up by more than half a percent year-over-year, compared to the national average of 1.3 percent.
The state’s employment rate rose to 4.7 percent.
The trend in Arizona aligns with the overall decline experienced across the nation. Job openings fell in March, though a recent hiring surge surpassing several years of pacing indicates this decline may stabilize or even turn around.
Acting BLS Commissioner William Wiatrowski, a longtime component of the agency, has defended the labor market reports amid months of criticisms from President Donald Trump. It was the president’s dissatisfaction with BLS reports, in part, that prompted the removal of Wiatrowski’s predecessor last summer.
Earlier this year, Wiatrowski denied accusations that poorer reports were manipulated or influenced to benefit Democrats.
“I can tell you there is no outside interference in the data,” said Wiatrowski. “If anyone was cooking the books, I would be one of the first persons shouting.”
Trump has nominated another longtime BLS economist and twice member of the president’s Council of Economic Advisors, Brett Matsumoto, to take over as the permanent commissioner.
“For many years, the Bureau of Labor Statistics, under WEAK and STUPID people, has been FAILING American Businesses, Policymakers, and Families by releasing VERY inaccurate numbers,” said Trump in a Truth Social post in January. “I am confident that Brett has the expertise to QUICKLY fix the long history of issues at the BLS on behalf of the American People. Brett Matsumoto is a Brilliant, Reputable, and Trusted Economist who will restore GREATNESS to the Bureau of Labor Statistics.”
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