By Staff Reporter |

Arizona experienced increases to both unemployment and jobs in the month of June.

The latest monthly update from the Joint Economic Committee (JEC) reflected that Arizona was one of seven states to experience an increase in unemployment and one of 34 states to experience an increase in jobs last month.

Arizona unemployment rose by 0.1% for a total of 4.9%. In other words, employment fell by 22,427 last month and by 91,024 over the past 12 months. That unemployment rate reflects the state’s highest rate since the pandemic. 

Labor force participation fell by 0.4% to 60.3% last month, nearing the state’s 10-year low. This decline marked the fifth consecutive month of the downward trend. Over the past 12 months, the state’s labor force participation rate fell by 1.8%. Overall, Arizona ranks 37th in the nation for labor force participation. The state reached its 10-year high in November 2019, at 62.2%, and sank to its 10-year low in April 2020, at 60.2%. 

Net payroll jobs grew by 2,400 after a loss of 1,600 net payroll jobs in May. Arizona’s nonfarm payroll employment increased in nine of the past 12 months. 

Arizona also ranked 15th in the nation for percentage gain in nonfarm payroll employment over the last 12 months. The state’s private sector added 2,500 net private payroll jobs, reaching a total of 30,300 private payroll jobs over the past 12 months.

An analysis from the Common Sense Institute (CSI) found that Arizona outperformed the nation for job growth in June. CSI found Arizona’s national growth rate to be 0.72%, more than double the national growth rate of 0.32%.

CSI did warn that May’s employment estimates underwent significant revisions, which indicated volatility of monthly labor data. The state initially reported gaining 2,000 jobs for that month. The decline of 1,600 jobs marked one of the largest downward revisions in the nation, per CSI. 

JEC reported that Arizona’s best performing sectors for employment from May to June were trade, transportation, utilities, and professional and business services, collectively accounting for the addition of 5,700 jobs. The worst performing sectors were leisure and hospitality and manufacturing, collectively accounting for the loss of 4,200 jobs.  

From June 2025 to June 2026, the best performing sectors for employment were private education and health services and professional and business services, collectively accounting for the addition of 30,500 jobs. The worst performing sectors were leisure and hospitality and state and local government, collectively accounting for the loss of 9,900 jobs.

CSI found that Arizona’s mining sector was the fastest-growing industry in the state over the past year. The sector added 1,400 jobs over the past 12 months, a growth of nearly 9%. CSI also found that education and health services also grew at a steady clip of about 3.7%, outpacing national growth.

Nationally, unemployment fell in 30 states, rose in seven states, and remained unchanged in 14 states. The District of Columbia was included in the national analysis and maintained the highest unemployment rate, 6%. South Dakota had the lowest unemployment rate, 2%. 

Payroll jobs rose in 34 states and fell in 17 states. Alaska and New Hampshire had the largest payroll job percent increase, and West Virginia had the largest payroll job percent decline.

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