by Staff Reporter | May 11, 2026 | Economy, News
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.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Ethan Faverino | May 10, 2026 | Economy, News
By Ethan Faverino |
The Joint Economic Committee released its Monthly Employment Update for April 2026, showing the U.S. economy added 115,000 nonfarm payroll jobs, exceeding expectations. The gain was driven entirely by the private sector which added 123,000 jobs, while government employment declined 8,000.
Nonfarm payroll employment now stands at 158.74 million, with private sector payrolls at 135.43 million and government payrolls at 23.31 million. The headline unemployment rate (U-3) held steady at 4.3%, while the broader U-6 measure, which includes underemployment, rose 0.2 percentage points to 8.2%. The labor force participation rate declined 0.1 percentage points to 61.8%.
March’s job gain was revised upward by 8,000 to a total of 185,000, while February’s figure was revised downward by 64,000, resulting in a net loss of 156,000 jobs for that month.
In April, the strongest job gains occurred in trade, transportation, and utilities, which added 60,000 positions, and private education and health services, which added 46,000. Losses were recorded in information (-13,000) and financial activities (-11,000).
Over the past year, from April 2025 to April 2026, private education and health services led with 618,000 new jobs, followed by leisure and hospitality with 142,000. The largest declines came in federal government (-311,00) and information (-92,000).
Wage growth remained moderate over the year. Average nominal weekly and hourly earnings for all employees on private nonfarm payrolls both increased by 3.57%. For production and nonsupervisory employees, average nominal weekly earnings rose 3.97%, while average nominal hourly earnings increased 3.67%.
The Job Openings and Labor Turnover Survey for March 2026 showed job openings declining by 56,000 to 6.87 million, with the rate falling to 4.1%. Private education and health services and financial activities posted gains in openings, while professional and business services experienced the largest drop. Hires increased sharply by 655,000 to 5.55 million, and total separations rose by 356,000 to 5.38 million, with both quits and layoffs and discharges seeing notable increases.
In Arizona, the labor market softened in March as the state lost 2,600 net payroll jobs and the unemployment rate edged up 0.1 percentage points to 4.7%, following a gain of 10,100 jobs the previous month.
Over the past 12 months, Arizona has lost 8,600 net payroll jobs while its unemployment rate has risen 0.5 percentage points from 4.2%. The state’s private sector lost 2,400 jobs in March, and employment overall fell by 19,093 during the month. Arizona’s labor force participation rate declined to 61.4% ranking 34th in the nation.
From February to March 2026, Arizona saw gains in private education and health services and professional and business services, offset by losses in leisure and hospitality and trade, transportation, and utilities. Over the full year, private education and health services rained the strongest performer in the spare, while trade, transportation, and utilizes and financial activities posted the largest declines.
Nationally, the labor force participation rate stood at 61.9% in March.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Staff Reporter | May 9, 2026 | Economy, News
By Staff Reporter |
Arizona’s Permanent Land Endowment Trust Fund (PLETF) market value surpassed $10 billion, the Arizona Treasurer’s Office announced.
PLETF reflects the deposits and investments of proceeds from public land sales. The federal government gave nearly 11 million acres to Arizona for endowment when it achieved statehood in 1912, just as it had done for other states.
PLETF has 13 beneficiaries, but its main beneficiaries are K-12 public schools, which includes the Arizona State School for the Deaf and Blind. Other beneficiaries include the state’s universities; state prisons; the State Hospital; the legislative, executive, and judicial branches; the Arizona Miners’ Hospital; and the Arizona Pioneers Home.
(State law slated the Arizona Pioneers Home and Arizona Miners Hospital for termination in July 2032).
Arizona Independent Redistricting Commission data reported the remaining total of state trust land to be about nine million out of the original 11 million acres. The state has a total of nearly 73 million acres.
That nine million acre estimate equals about 13 percent of total land in the state. Privately-held land only makes up 14 percent of Arizona land.
PLETF’s 10-year returns were reported to have outperformed the average U.S. college and university endowments for the past decade.
In February, the PLETF had a fair market value of $10.1 billion.
The latest reported all-time high, the newest in a succession of all-time highs, can be attributed to the treasurer office’s director of endowments, Tim White.
White has managed PLETF’s stock portfolio for nearly 30 years (since 1999). Per the treasurer’s office, White has the ultimate decision-making responsibility on all holdings and trades for PLETF.
White’s tenure has overseen a growth of the PLETF fair market value from $475 million in 1992 to repeated all-time highs, including the most present reporting.
Despite this progress, some argue the PLETF could be doing more.
The Common Sense Institute Arizona (CSI) issued a report critical of the approach to the PLETF last November. In it, CSI argued that the administration of PLETF has failed for a long time — not just for the duration of this administration, but for the last 100 years.
CSI claimed PLETF could have been worth more than $163 billion, over sixteen times this latest historic amount, and could have distributed $140 billion to beneficiaries.
CSI estimated in its report that the ordered sale of remaining trust land over the next ten years would generate more than $18 billion in revenue and $55 billion in new economic activity.
The organization’s director of policy and research, Glenn Farley, told KJZZ last December that the state has taken the most action on growing the financial account but hasn’t taken enough action on selling the physical land. Farley advocated for a “foundational reevaluation” of the state’s timeline for land sales and its PLETF priorities.
“[T]his is not an administrative problem,” said Farley. “This is a 100-year problem. No administration in this state has really taken full advantage of this asset.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Ethan Faverino | May 7, 2026 | Economy, News
By Ethan Faverino |
The U.S. trade deficit widened in March, according to analysis released earlier this week by the Joint Economic Committee based on data from the Bureau of Economic Analysis, U.S Census Bureau, Treasury Department, and Bureau of Labor Statistics.
The total trade deficit reached $60.3 billion in March, an increase of $2.53 billion from February and 3% above the 12-month average. The goods trade deficit stood at $88.71 billion up $4.09 billion from the prior month and also 3% above its 12-month average. This was partially offset by a services trade surplus of $28.41 billion, which rose $1.56 billion from February and was likewise 3% above average.
For the full 12 months through March 2026, the United States recorded a total trade deficit of $700.49 billion. This reflected a goods trade deficit of $1.03 trillion, partially offset by a services trade surplus of $331.39 billion. Total exports over the period reached $3.53 trillion, while total imports totaled $4.23 trillion.
Largest Trade Imbalances by Country
Over the trailing 12 months, the largest goods trade deficits were with Mexico ($194.42 billion, 18.96% of the total goods deficit), Vietnam ($193.35 billion, 18.86%), and Taiwan ($177.28 billion, 17.29%). Additional notable deficits occurred with China, Thailand, Ireland, Germany, Japan, South Korea, and India.
The largest goods trade surpluses were recorded with the Netherlands ($68.49 billion), United Kingdom ($47.42 billion), and Hong Kong ($40.32 billion).
Top Exports and Imports
The leading exported goods by value were civilian aircraft, engines, equipment, and parts; pharmaceutical preparations; and nonmonetary gold. Together these categories accounted for 17.54% of all U.S. goods exports over the 12-month period.
The United States exported the most to Mexico ($347.18 billion), Canada ($327.56 billion), and the United Kingdom ($109.51). These three destinations represented 34.72% of total U.S. exports.
On the import side, the top categories by value were computers; pharmaceutical preparations; and passenger cars, which together made up 19.74% of all imported goods. The largest sources of imports were Mexico ($541.61 billion), Canada ($365.62 billion), and China ($266.59 billion), accounting for 35.74% of total U.S. imports.
Import Duties Decline
In March, the U.S. collected $20.49 billion in import duties—18.40% below the 12-month average—with the average applied duty rate at 6.85%, down 2.45 percentage points from the yearly average. Over the full 12 months, calculated duties totaled $301.30 billion.
The highest duty revenues came from passenger cars, vehicle parts, and electric apparatus, with notably higher average rates applied to certain categories such as iron and steel products. China remained the top source of duty revenue.
Currency Movements and Terms of Trade
From March 2025 to March 2026, the U.S. dollar weakened against several major currencies: by 4.9% against the Chinese yuan, 6.3% against the euro, 2.2% against the British pound, and 11.9% against the Mexican peso. It strengthened 6.1% against the Japanese yen.
A stronger dollar typically improves U.S. terms of trade by reducing the cost of imports, allowing the country to purchase more foreign goods for the same volume of exports.
Export and Import Price Trends
Year-over-year export prices rose 5.57 percent overall, while import prices increased 5.10%. Non-fuel import prices rose 5.85%, with notable variations across categories including industrial supplies and consumer goods.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | May 5, 2026 | Economy, News
By Matthew Holloway |
Arizona Senate Republicans announced on Monday that they passed a $17.9 billion budget for fiscal year 2027 that includes $1.45 billion in tax relief over four years and spends approximately $800 million less than Governor Katie Hobbs’ proposal.
The budget, approved by the Legislature and sent to Hobbs, is based on updated April revenue projections that showed a $200 million decrease in available resources.
According to Senate Republicans, the plan includes a series of tax changes intended to provide cost-of-living relief, including eliminating state taxes on tips and overtime pay, increasing the standard deduction, allowing full deductions for child-care expenses, increasing the dependent tax credit by $25, and creating a $6,000 deduction for seniors age 60 and older with retirement or pension income.
The proposal also includes conformity with federal tax policy changes associated with Donald Trump’s tax cuts, which the Senate said would ensure Arizona taxpayers do not need to refile their 2025 state tax returns.
“This is a serious, disciplined budget that puts Arizona families first,” Senate President Warren Petersen (R-LD14) said in a statement. “We cut taxes, protect essential services, and base every decision on real April revenue projections — not wishful thinking.”
He added, “In divided government, we faced the math, eliminated waste through targeted reforms, and delivered real results without raising taxes or growing government.”
The budget maintains current funding levels for K-12 education and public safety, preserves the voter-protected K-12 State Land Trust, and limits overall spending growth to 1.9 percent.
To address the projected shortfall, Senate Republicans said the plan includes policy changes aimed at reducing spending, including enhanced eligibility verification in public assistance programs such as the Arizona Health Care Cost Containment System (AHCCCS) and the Supplemental Nutrition Assistance Program (SNAP), a 5% reduction in agency operating budgets excluding public safety and child welfare agencies, and the repeal of certain tax credits and subsidies, including solar incentives.
The budget does not reduce base pay for Arizona Department of Public Safety troopers or firefighters and does not modify existing data center incentives previously signed into law.
The plan also includes $4.75 million in emergency funding for the Department of Public Safety, which Senate Republicans said the agency had requested and that the governor had previously vetoed as a standalone bill.
The Arizona Senate Republican Caucus said the budget reflects the constraints of divided government and relies on no new taxes or fees.
“This budget reflects the reality of divided government,” Petersen said. “While Democrats were on the floor today saying we need to raise taxes, we are instead delivering historic tax relief without burdening taxpayers. Your business and your wallet are on the ballot this fall. Vote wisely.”
The proposal now awaits Hobbs’ action.
House Speaker Steve Montenegro (R-LD29), Petersen, and other legislative Republican leaders are scheduled to hold a press conference on Tuesday at 1 p.m., according to a media advisory, to highlight the budget and urge Hobbs to sign the legislation.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | May 4, 2026 | Economy, News
By Matthew Holloway |
Arizona’s affordable housing shortage is primarily the result of years of underbuilding after the Great Recession, not the rise of short-term rental (STR) platforms like Airbnb, according to a new report from the Common Sense Institute.
The report, titled “Home Prices, the Great Recession, and the Sharing Economy: Evidence from Arizona and Airbnb,” found that Arizona homebuilders sharply reduced construction following the 2008 housing crash and never returned to pre-recession levels, even as population growth resumed. Permit activity in Arizona fell from nearly 90,000 annual authorizations in 2005 to just 12,600 in 2010. By 2019, the state was still authorizing only about 45,000 new housing units per year, roughly half its pre-recession pace.
According to CSI, Arizona built roughly 38,000 fewer housing units per year between 2008 and 2023 than would have been needed to keep pace with long-term historical trends. Researchers concluded that this persistent gap in construction created a housing deficit that continues to drive up prices across the state.
While Airbnb and similar platforms have drawn criticism for reducing housing supply, the report found that short-term rentals account for only a small share of Arizona’s housing stock and are concentrated in tourism-heavy markets rather than spread evenly across the state. According to the Arizona Association of Realtors, CSI found “no observable statistical relationship” between the growth of short-term rentals and rising home prices across most Arizona communities.
The institute stated that under a new analysis examining “the underlying causes of Arizona’s housing shortage and the role of the short-term rental market,” it found “no consistent statistical relationship between short-term rental growth and home price appreciation across Arizona communities.”
CSI further observed that short-term rentals represent less than 2% of Arizona’s 3.3 million housing units and that, statewide over ten years, “there is no — and sometimes even a negative — relationship between home price increases and the concentration of STRs.”
The report notes that Arizona’s housing market never fully recovered from the collapse of the mid-2000s housing boom. Phoenix-area home values fell by more than 50 percent during the recession, foreclosures surged, and builders dramatically slowed new construction. Although Arizona’s economy and population later rebounded, homebuilding lagged far behind demand.
CSI estimated that as of the second quarter of 2025, Arizona faced an immediate housing shortage of roughly 52,800 units statewide. Using a broader, long-term measure, the organization estimated that the state’s housing supply was short by more than 121,000 units at the time. Maricopa County alone is projected to have a deficit of more than 34,700 homes.
Housing affordability remains a major issue for Arizona families. CSI estimates the average home in Arizona now costs more than $426,000, approximately $53,000 more than it would have if home prices had continued along their pre-pandemic trend. The organization estimates Arizona households now need an annual income of about $95,800 to afford the average home under conventional mortgage guidelines, or roughly 92% of the state’s average household income.
“Arizona’s housing challenge is fundamentally a supply issue,” Glenn Farley, Director of Policy and Research at Common Sense Institute, said in a statement. “Homebuilding slowed dramatically after the Great Recession and has struggled to catch back up, even as Arizona continued adding people and jobs. The data consistently show that when housing production falls behind demand, whether because of permitting constraints, construction slowdowns, or long-term underbuilding, prices rise. Expanding housing supply will be essential to improving affordability across the state.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
