March Small Business Jobs Report Highlights Persistent Hiring Challenges

March Small Business Jobs Report Highlights Persistent Hiring Challenges

By Ethan Faverino |

The National Federation of Independent Business (NFIB) March Jobs Report, released earlier this week, shows the Small Business Employment Index declined 1.9 points to 101.6. While the index pulled back from February, it remains above the 2025 average of 101.2 and the long-term historical average of 100.

In March, a seasonally adjusted 32% of small business owners reported having job openings they could not fill, down just 1 point from the prior month but still well above the historical average of 24%. Of those, 27% had openings for skilled workers (down 1 point), and 12% had openings for unskilled labor (up 2 points).

“While small businesses are not hiring extensively, they continue to face difficulties related to labor cost and quality,” stated Chief Economist Bill Dunkelberg. “Despite the current stagnant employment growth, economic conditions could change rapidly.”

NFIB State Director Chad Heinrich added, “The numbers tell a clear story — small businesses want to hire, but qualified applicants are hard to find. Add the uncertainty around tax conformity, and owners simply can’t plan with confidence. Inaction at the Capitol has a real cost.”

A seasonally adjusted net 12% of owners reported plans to create new jobs over the next three months, unchanged from February and near the historical average of net 11%. Overall, 52% of owners said they were hiring or trying to hire in March, down 2 points from the previous month.

Among those attempting to hire, 45% reported few or no qualified applicants for the open positions, down 1 point from February. Specifically, 22% reported few qualified applicants (down 3 points) and 23% reported none (up 2 points).

Labor quality remained a top concern, with 15% of small business owners citing it as their single most important problem—unchanged from February and above the historical average of 12%. This marks the first time since December 2016 that labor quality has consistently registered at or above 15%. Meanwhile, 10% of owners identified labor costs as their top problem, up 1 point from February.

On the compensation front, a seasonally adjusted net 33% of owners reported raising worker pay in March, down 1 point from February. Looking ahead, a net 18% plan to increase compensation over the next three months, down 4 points from the prior month and the lowest reading since July 2025. Despite the recent softening, both actual and planned compensation levels remain above their historical averages.

“Employment growth has stagnated, as hiring plans continue to slide toward the historical average,” the report noted. Job openings have reached their lowest levels since the recovery from the COVID-19 recession.

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.

Arizona Corporation Commission To Host Summer Preparedness Workshop

Arizona Corporation Commission To Host Summer Preparedness Workshop

By Ethan Faverino |

The Arizona Corporation Commission (ACC) will host its annual 2026 Summer Preparedness Workshop on Tuesday, April 14, at 9:00 a.m. in Hearing Room One at the Commission’s Offices. The workshop will also be available virtually.

This annual event serves as a critical exercise in which Arizona’s regulated electric utilities present detailed plans to the Commission outlining their readiness to meet peak electricity demand during the state’s intense summer heat.

The workshop allows the ACC to review utility preparations, verify proactive grid maintenance efforts year-round, and confirm that infrastructure remains safe, reliable, and resilient for customers.

Arizona’s summer temperatures routinely drive record-breaking electricity demand as residents rely heavily on air-conditioning. In recent years, major utilities—including Arizona Public Service (APS), Salt River Project (SRP), and Tucson Electric Power (TEP)—have repeatedly set new peak demand records amid scorching heat, with highs often exceeding 115 degrees in the Phoenix area.

In 2025, utilities forecasted and prepared for peaks exceeding 8,400 MW for APS and SRP each, while emphasizing additions of solar, battery storage, and other resources alongside adequate reserves to maintain reliability.

The commission uses the workshop to ensure utilities demonstrate sufficient generating capacity, transmission readiness, maintenance schedules, emergency response protocols, and contingency measures for high-demand periods.

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.

U.S. Trade Deficit Widens In February But Remains Below 12-Month Average

U.S. Trade Deficit Widens In February But Remains Below 12-Month Average

By Ethan Faverino |

The Joint Economic Committee released its analysis of the latest Monthly Trade Update, drawing on data from the Bureau of Economic Analysis, U.S. Census Bureau, Treasury Department, and Bureau of Labor Statistics. The U.S. recorded a total trade deficit of $57.35 billion in February 2026, an increase of $2.67 billion from January but 11% below the 12-month average.

The goods trade deficit stood at $84.60 billion in February, up $2.47 billion from the previous month and 8% below the 12-month average. Meanwhile, the services trade surplus narrowed slightly to $27.26 billion, down $204 million from January and 1% below the 12-month average.

Over the 12 months through February 2026, the cumulative U.S. trade deficit totaled $775.60 billion. This included a goods trade deficit of $1.11 trillion, partially offset by a services trade surplus of $329.60 billion.

Largest Goods Trade Deficits and Surpluses

During the 12 months, the United States recorded its largest goods trade deficit with Mexico ($194.61 billion, representing 17.76% of the total goods deficit), Vietnam ($187.93 billion, 17.15%), and China ($172.90 billion, 15.78%).

The largest goods trade surpluses were with the Netherlands ($65.56 billion), the United Kingdom ($42.57 billion), and Hong Kong ($36.16 billion).

Key Export and Import Categories

The top exported goods by value over the 12 months were civilian aircraft, engines, equipment, and parts; pharmaceutical preparations; and non-monetary gold. These categories together accounted for 17.14% of total U.S. goods exports.

On the import side, the leading categories were pharmaceutical preparations, computers, and passenger cars, which together made up 20.25% of the value of all imported goods.

February Trade Flows

Total exports in February reached $314.79 billion, up $12.56 billion from January and 8% above the 12-month average. Goods exports rose to $206.92 billion, while services exports increased to $107.87 billion.

Total imports climbed to $372.14 billion, up $15.23 billion from January and 5% above the 12-month average. Goods imports totaled $291.52 billion, and services imports reached $80.61 billion.

12-month Overview

Over the full 12-month period through February 2026:

  • Total exports amounted to $3.49 trillion ($2.25 trillion in goods and $1.25 trillion in services)
  • Total imports reached $4.27 trillion ($3.35 trillion in goods and $917.14 billion in services)

The U.S. exported the most to Mexico ($343.77 billion), Canada ($327.91 billion), and the United Kingdom ($105.71 billion), which together represented 34.89% of total exports. Imports were highest from Mexico ($538.38 billion), Canada ($367.20 billion), and China ($275.12 billion), accounting for 35.52% of total imports.

Major export port districts included New York City, NY ($268.93 billion), Houston-Galveston, TX ($242.43 billion), and Laredo, TX ($166.74 billion). On the other side, the leading ports were Los Angeles, CA ($369.30 billion), Chicago, IL ($352.76 billion), and New York City, NY ($319.81 billion).

Import Duties and Tariff Rates

In February 2026, the U.S. collected $21.24 billion in import duties, 13.25% below the 12-month average. Over the 12 months, total calculated duties reached $293.80 billion.

The average applied duty rate in February was 8.48%, 0.56 percentage points lower than the 12-month average. The top categories by duty revenue were passenger cars ($28.62 billion at 16.54%); other parts and accessories of vehicles ($19.12 billion at 14.21%); and electric apparatus ($15.11 billion at 15.09%).

The leading countries of origin by calculated duty revenue were China ($94.80 billion at an average rate of 35.99%), Mexico ($22.93 billion at 4.28%), and Vietnam ($20.84 billion at 10.06%).

Terms of Trade and Currency Movements

The U.S. dollar weakened against several major currencies over the period: down 5.8% against the Chinese yuan, 12% against the euro, 6.4% against the British pound, and 16.1% against the Mexican peso. However, it strengthened 3.6% against the Japanese yen.

Export prices rose 3.54% year-over-year (2.22% for agricultural exports and 3.76% for non-agricultural). Import prices increased 7.44% overall, with fuel imports falling 10.53% while non-fuel imports rose 8.64%.

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.

Senator Werner To Hold Final DCS Oversight Hearing On Child Safety Reforms

Senator Werner To Hold Final DCS Oversight Hearing On Child Safety Reforms

By Ethan Faverino |

Senate Health and Human Services Committee Chair Carine Werner (R-LD4) will hold the final Department of Child Safety (DCS) oversight hearing of the legislative session on Monday, April 6, at 9 a.m. The hearing caps a months-long investigation into systemic failures that left vulnerable Arizona children unprotected despite repeated contacts with the child welfare system.

The oversight effort, launched after several high-profile tragedies, exposed critical breakdowns in how DCS handles reports of abuse, coordinates with partners, and responds to warning signs.

Among the cases that drew urgent attention were Emily Pike, a 14-year-old who ran away from a group home and was later found dead, Rebekah Baptiste, a 10-year-old who died after multiple reports of abuse were filed but not addressed with sufficient urgency, and Zariah Dodd, a 16-year-old in DCS care who was reported missing and later found murdered in Phoenix.

In each instance, the children had prior involvement with the system, yet missed opportunities for timely intervention, poor information sharing, and delayed action contributed to fatal outcomes.

“This investigation made one thing painfully clear. People were raising red flags, but the system wasn’t connecting the dots or acting fast enough,” stated Senator Werner. “These children were not invisible. They were known. Reports were made. And still, the response fell short. That cannot happen again.”

Through a series of stakeholder meetings and hearings involving DCS officials, law enforcement, child welfare experts, and affected families, Senator Werner’s committee identified key gaps in coordination, documentation, reporting, and response times. That work has culminated in a targeted package of bipartisan reform bills designed to prevent similar failures.

  • SB 1125 strengthens coordination between DCS and Arizona’s Indian tribes by requiring efforts to establish memoranda of understanding. These agreements focus on sharing best practices in intake, investigations, placement, case management, and service coordination; designating tribal liaisons; and providing tribes access to regulatory actions, licensing sanctions, and safety violations involving group homes where tribal children are placed.
  • SB 1126 improves information sharing between schools and DCS investigators. In compliance with federal privacy laws, schools must, upon request, identify other schools that have sought a student’s records, note any withdrawals, and provide relevant information or records during active abuse or neglect investigations. The bill also prohibits schools from barring employees from speaking with DCS caseworkers.
  • SB 1127 tightens mandatory reporting requirements, stipulating that individuals with a duty to report suspected abuse or neglect who have direct knowledge must report immediately to DCS and may not delegate responsibility to another person.
  • SB 1174 enhances DCS’s centralized intake process by requiring hotline workers to compile and review a child’s full history—including prior hotline calls and investigations involving the child and siblings—so patterns of concern are immediately visible. Workers must also review recent non-report calls when assessing new allegations.
  • SB 1175 mandates that DCS caseworkers photograph children during every contact in an abuse or neglect investigation and maintain those images in the case file. When developing safety plans, caseworkers must review photos to identify any decline in the child’s appearance or health.
  • SB 1496 strengthens legal protections and representation for children in dependency cases, including provisions addressing the Department’s role as representative payee for benefits and efforts to identify more appropriate non-DCS individuals for that responsibility.
  • SB 1631 ensures that children who are alleged victims of sexual abuse receive a forensic interview conducted by a trained professional immediately or within 72 hours of the report. The requirement includes specific definitions of sexual abuse and allows documented good cause exceptions for limited delays, such as the child receiving inpatient care or not being located.

Presentations at Monday’s hearing will feature insights from Casey Family Programs, a national nonprofit dedicated to improving child welfare and reducing unnecessary foster care placements; Collaborative Safety, which partners with agencies to enhance child protection practices and lower risks; and an update from the Arizona Department of Child Safety on policy changes implemented since the investigation began.

“The reforms we’re advancing are about making sure information is shared, warning signs are taken seriously, and experienced professionals step in immediately when a child is in danger,” added Senator Werner. “When a child’s life is on the line, there is no room for delays, confusion, or missed communication.”

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.

Willoughby Urges Action On Gas Prices After Favorable EPA Ruling

Willoughby Urges Action On Gas Prices After Favorable EPA Ruling

By Ethan Faverino |

Arizona House Majority Whip Julie Wiloughby (R-LD13) praised a recent Trump administration decision recognizing the significant impact of internal emissions on Arizona’s ability to meet federal air quality standards.

The ruling grants the Phoenix metropolitan area relief from stricter federal requirements, opening the door for potential long-term reforms to the state’s expensive summer gasoline blend mandated in Maricopa and Pinal Counties.

The decision, issued last week by the U.S. Environmental Protection Agency (EPA), found that the Phoenix-Mesa nonattainment area would have met the 2015 ozone National Ambient Air Quality Standards (NAAQS) if not for emissions originating outside the United States. This finding, under Section 179B of the Clean Air Act, prevents reclassification to a more severe status. It acknowledges that a major share of emissions affecting Arizona is beyond the state’s control.

For months, Willoughby has collaborated with local and federal officials to pursue reforms addressing Arizona’s higher summer fuel costs. In January, she sent a letter to the EPA initiating discussions on permanent changes to lower costs for families while maintaining compliance with air quality standards.

“The main reason drivers in Maricopa and Pinal counties pay more for gas in the summer is that these areas are forced to use a special boutique blend made only for Arizona,” explained Willoughby. “It costs more to produce, limits supply, and leaves our state more vulnerable to price spikes. The question is whether this requirement is still doing anything meaningful to improve air quality. If it is not, then Arizona families are being forced to pay more for little to no benefit.”

Willoughby noted that industry operations are cleaner and national fuel standards have evolved since Arizona’s blend was last updated. “Industry is cleaner today than it was when Arizona’s blend was last updated, and fuel standards nationwide have changed significantly since then. There is a strong possibility that Arizona can move to a lower-cost fuel option without sacrificing air quality. If the evidence supports that conclusion, we should act immediately.”

To advance the issue, Willoughby introduced a package of five measures aimed at lowering fuel costs, evaluating compliant fuel options, and requiring the state to adopt a lower-cost fuel once federally approved.

“In order to change the blend, Arizona must submit a request to the EPA to revise our State Implementation Plan and show that we can still meet federal air quality standards with the new blend,” added Willoughby. “The modeling used to make that demonstration must take into account the fact that a major share of the emissions affecting our state comes from outside our borders and is beyond Arizona’s control. The Trump Administration’s recent decision recognizing international transport acknowledges this impact and gives Arizona more room to reevaluate whether our current fuel requirements are still justified. With the federal government signaling openness, this may be our best and only opportunity to get this done.”

In February, Willoughby requested that the Maricopa Association of Governments (MAG) model the impacts of switching from Arizona’s current boutique gasoline blend (Reid Vapor Pressure of 7.0 psi) to a more widely available, lower-cost blend with an RVP of 7.4 psi.

Preliminary modeling completed in March showed that the switch would increase the maximum ozone concentration in the Phoenix metropolitan area by between zero and 0.01 parts per billion.

“That is a negligible impact and more than enough reason to move this conversation forward,” continued Willoughby. “Just as important, Governor Hobbs’ administration already has these results. MAG provided the modeling to her Department of Environmental Quality, which means the Governor could begin acting on this now if she wanted to. She does not need to wait. She does not need more excuses. If Governor Hobbs is serious about lowering fuel costs, she should direct her agency to act immediately.”

In a follow-up letter to MAG Director of Environmental Planning, Matt Poppen, Willoughby highlighted the positive results from the Comprehensive Air Quality Model with Extensions (CAMx v7.32) and Community Multiscale Air Quality (CMAQ v5.5) analyses. The CAMx results showed no changes in the 2023 design value attainment at any monitoring site, while CMAQ predicted a maximum impact of just 0.01 ppb at three sites.

Willoughby also requested additional modeling for a Federal Reformed Gasoline blend with an RVP of 7.8 psi, used in some other western states, and discussions on next steps for a State Implementation Plan revision.

“The modeling is favorable. The facts are lining up in Arizona’s favor. We should seize this opportunity and make the case for lasting gas affordability now,” concluded Willoughby.

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.