By Ethan Faverino |
The U.S. economy added 165,000 jobs in October, significantly exceeding economists’ expectations, while Arizona reported a slight decline in payroll employment and an unemployment rate above the national average, according to the latest employment figures released by the Joint Economic Committee (JEC).
The JEC’s November 6 Monthly Employment Update reported that nationwide non-farm payroll employment increased by 165,000 in October, surpassing economists’ projections of approximately 59,000 jobs.
The gains included 159,000 private-sector jobs and 6,000 government positions, bringing total non-farm payroll employment to approximately 159.29 million.
The national unemployment rate declined slightly from 4.2% in September to 4.1% in October, while the labor force participation rate increased from 61.8% to 61.9%.
However, the broader U-6 unemployment rate, which includes individuals working part-time for economic reasons and certain workers marginally attached to the labor force, increased by 0.3 percentage points to 7.9%.
The latest report also included upward revisions to employment figures from the previous two months. September’s payroll gains were revised upward by 31,000, from an initially reported 29,000 to 60,000 jobs, while August’s figures were revised upward by 53,000 from the previously reported 133,00 to 186,000 jobs.
Professional and business services led national employment growth in October, adding 70,000 jobs, followed by private education and health services, which added 53,000 positions. Meanwhile, leisure and hospitality lost 13,000 jobs, and construction employment declined by 3,000.
Over the past 12 months, private education and health services recorded the largest employment gains nationwide, adding 525,000 jobs, followed by professional and business services with 269,000 additional positions. The information and financial activities sectors experienced the largest declines, losing 119,000 and 99,000 jobs, respectively.
Wage growth also continued over the past year. Average nominal weekly earnings for private-sector employees increased by 3.72%, while average hourly earnings rose by 3.12%. For production and nonsupervisory employees, weekly earnings increased by 3.62%, and hourly earnings grew by 3.31%.
Despite the stronger national employment figures, Arizona’s latest available state-level data reflected mixed employment trends.
According to the JEC’s September state employment snapshot, Arizona lost 300 net payroll jobs during the month, following a loss of 5,500 jobs in August.
The state’s unemployment rate remained unchanged at 4.9%, above the national rate of 4.2% recorded during the same month.
Arizona’s private sector lost 2,800 jobs in September, following a decline of 4,500 positions in August. However, the state added 18,800 total non-farm payroll jobs over the previous 12 months, including 23,400 private-sector positions.
The state’s unemployment rate increased by 0.5 percentage points over the past year, rising from 4.4% in September 2025 to 4.9% in September 2026.
Arizona also experienced a decline in labor force participation, with the rate falling from 59.9% in August to 59.7% in September. The figure ranked Arizona 37th nationally and represented a 2.4-percentage-point decline over the previous year.
The September participation rate also marked the state’s lowest level in the past decade, according to the JEC, compared to a 10-year high of 62.2% recorded in November 2019.
State and local government employment accounted for Arizona’s largest monthly sector gain in September, adding 2,600 jobs, followed by other services with 600 additional positions. Professional and business services experienced the largest decline, losing 1,600 jobs, while private education and health services shed 1,300 positions.
Over the past year, Arizona’s private education and health services sector added 14,700 jobs, followed by professional and business services with 7,800 positions. Leisure and hospitality recorded the largest annual decline, losing 8,800 jobs, while financial activities lost 6,700 positions.
Arizona tied for 21st nationally in percentage growth of total non-farm payroll employment over the previous 12 months and tied for 19th in private-sector payroll employment growth.
Separately, the JEC’s latest Job Openings and Labor Turnover Survey showed that nationwide job openings increased by 333,000 in September to 7.52 million, while the job openings rate rose to 4.5%.
Total hires increased by 131,000 to 5.40 million, while separations rose by 144,000 to 5.32 million. Although voluntary quits increased by 321,000 to 3.37 million, layoffs and discharges declined by 127,000 to 1.64 million.
The latest figures highlight a contrast between stronger-than-expected national job creation in October and Arizona’s maker employment performance in September, as the state continues to face declining labor force participation and an unemployment rate above the national average.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
