by Matthew Holloway | Apr 15, 2026 | Economy, News
By Matthew Holloway |
A new report from the Common Sense Institute finds that rising costs for housing, groceries, insurance, and child care continue to strain affordability for Arizona families, even as inflation has cooled from its post-pandemic peak.
According to CSI’s latest affordability rankings, Arizona is now the seventh least affordable state in the nation and ranks 45th overall when comparing household incomes to the cost of essential expenses. The state has fallen 12 spots in affordability since 2019, but remains more affordable than Florida, Oregon, New York, Massachusetts, and California, which ranked 46th through 50th, respectively.
CSI’s analysis found that Arizona households retain about 19.6% of their gross income after paying for taxes and basic expenses such as shelter, groceries, health insurance, car insurance, gasoline, and child care. That amounts to about $1,700 per month left over, compared to the national average of 24.7% ($2,170 per month).
The report found that Arizona households are spending about $19,300 more per year on essential expenses than they did in 2019, exceeding the national average increase of $15,400. CSI estimates that Arizona households have effectively lost 3.8% of their gross income to rising prices since before the pandemic.
Housing costs have continued to be the primary cause of affordability challenges in the state. According to a recent report, shelter and utility costs for Arizona households rose by $9,012 annually between 2019 and 2025, a 59% increase that ranked as the fourth-largest increase in the country. Arizona also experienced some of the nation’s fastest-growing grocery and car insurance costs during the same period.
CSI reported that grocery costs rose by $3,375, child care costs by $3,950, health insurance costs by $1,302, car insurance costs by $1,355, and gasoline costs by $313 between 2019 and 2025.
The report found that child care remains a major expense for working families. In Arizona, one full-time working parent must devote about 38% of their gross income to cover child care costs, slightly below the national average of roughly 40%. Nationally, CSI estimated that the average household spends about 16.9% of gross income on child care for preschool- and school-aged children.
“Inflation reports may show things are cooling, but that doesn’t mean life is getting more affordable for Arizonans,” said Zachary Milne, Senior Economist and Research Analyst for the Common Sense Institute AZ. “Our analysis shows the cost of everyday essentials is still significantly higher than it was before the pandemic, and for many families, incomes haven’t kept pace. That gap is what continues to drive the affordability challenges we’re seeing across Arizona today.”
CSI noted that inflation in the Phoenix area has moderated in recent months, with consumer prices rising 2.2% year over year in December. However, according to CSI’s Arizona inflation update, prices in the Phoenix metro area remain 28.9% higher than they were in December 2019, resulting in an additional $1,441 in average monthly costs for a typical Arizona household.
Arizona households are also carrying greater debt, coupled with declining credit scores and rising delinquency rates, at levels significantly higher than the national average, according to CSI’s April 1 report.
CSI detailed its data sources and methodology on its website.
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 Ethan Faverino | Apr 12, 2026 | Economy, News
By Ethan Faverino |
New data from the Common Sense Institute’s Arizona Jobs and Labor Force Update shows Arizona added 5,100 non-farm jobs on a seasonally adjusted basis in January, representing a modest 0.16% increase from December. This gain ranked the state 25th highest among all 50 states and Washington, D.C. Nationally, the U.S. economy added 160,000 jobs in January, with 44 states reporting month-over-month job gains.
However, on a year-over-year basis, Arizona’s labor market weakened significantly. The state lost 15,000 jobs compared to January 2025, marking a stark contrast to the national gain of +0.20%. Arizona ranked 43rd in year-over-year job growth, one of 24 states experiencing annual job losses. This marked the 22nd consecutive month of annual job growth below 2% in Arizona.
Revised data now indicate the state has been experiencing year-over-year job losses since August 2025—the first negative annual reading since September 2024 and the largest percentage decline since March 2021.
Arizona’s manufacturing sector provided a bright spot in January, adding approximately 600 jobs. The state was one of only 20 to add manufacturing jobs that month. However, on an annual basis, manufacturing employment continued to contract, down 0.7% from January 2025, with Arizona among 40 states losing manufacturing jobs over the year.
Unemployment in Arizona edged up slightly to 4.5% in January from a revised 4.4% in December, giving the state the 35th highest unemployment rate nationally. The state’s labor force participation rate held steady at 62%. Nationally, the unemployment rate declined modestly to 4.3% in January and has remained at that level through March 2026.
Sector performance in January varied. The “Other Services” sector led growth, adding 1,300 jobs (+1.3%), though it remains one of Arizona’s smaller supersectors with just 105,000 workers. Construction added 800 jobs month-over-month.
On an annual basis, the Mining and Logging sector continued to outperform, expanding 7.2% since January 2025. Meanwhile, the state’s largest supersector—Trade, Transportation, and Utilities—added only 200 jobs in January. The Information sector posted the weakest annual performance, declining 1.83% year-over-year.
While employment growth has slowed, wage growth in Arizona remained robust at the start of 2026. Average hourly wages rose $0.47 in January, ranking the state 9th nationally for monthly wage growth. Over the past year, Arizona’s average hourly wage increased by $1.10, placing it 29th in the U.S. for annual wage growth. Private Sector workers in Arizona now earn an average of $35.32 per hour, up from $34.22 a year ago.
Nationally, average hourly wages rose 0.35% in January and have continued growing, with the U.S. rate reaching 3.5% year-over-year as of March. Real (inflation-adjusted) wages in Arizona were up 1.2% as of January. Roughly in line with national trends, though they remain down 3.4% since April 2020.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Apr 9, 2026 | Economy, News
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.
by Ethan Faverino | Apr 7, 2026 | Economy, News
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.
by Matthew Holloway | Apr 4, 2026 | Economy, News
By Matthew Holloway |
The U.S. added 178,000 jobs in March, with gains driven by the private sector, while federal employment declined and labor force participation edged slightly lower, according to the Joint Economic Committee.
The report shows job growth rebounded following a weaker February. Private employers added 186,000 jobs, while government employment declined by 8,000 positions.
In a statement posted to X, the JEC Republicans announced the findings, “Beating Expectations!”
The unemployment rate decreased slightly from 4.4 percent in February to 4.3 percent in March. The labor force participation rate declined by 0.1 percentage points to 61.9 percent.
The broader U-6 measure of unemployment, which includes underemployed and marginally attached workers, increased from 7.9 percent to 8.0 percent.
Revisions to prior months showed weaker job performance than initially reported in February. Job losses for that month were revised downward by 41,000, from a decline of 92,000 to a decline of 133,000 jobs. January’s figures were revised upward by 34,000, bringing total job gains for that month to 160,000.
CNN Senior Reporter Matt Egan told audiences Friday, “The job market bounced back in a big way in March. And that is good news. Really, blowing away expectations.”
Wage growth continued on a year-over-year basis. From March 2025 to March 2026, average nominal weekly earnings for all employees on private nonfarm payrolls increased by 3.52 percent, with hourly earnings rising by the same percentage.
For production and nonsupervisory employees, average weekly earnings increased by 3.69 percent, while hourly earnings rose by 3.38 percent over the same period.
Sector-level data showed gains concentrated in specific industries. From February to March, private education and health services added 91,000 jobs, while leisure and hospitality added 44,000.
Losses were recorded in federal government employment, which declined by 18,000 jobs, and in financial activities, which fell by 15,000.
On a year-over-year basis, private education and health services added 663,000 jobs, and leisure and hospitality added 176,000. Federal government employment declined by 330,000 over the same period, while trade, transportation, and utilities decreased by 154,000 jobs.
Job openings declined during the most recent reporting period. From January to February 2026, total nonfarm job openings decreased by 358,000 to 6.88 million. The job openings rate declined by 0.2 percentage points to 4.2 percent.
Sector data for job openings showed increases in other services, which added 77,000 openings, and professional and business services, which added 64,000. Declines were led by leisure and hospitality, down 213,000 openings, and private education and health services, down 78,000.
In a statement, White House spokesman Kush Desai said, “The March jobs report blew out expectations with strong construction job growth and a surge in manufacturing job creation as trillions of dollars in investments begin to materialize. America remains on a solid economic trajectory thanks to President Trump’s proven agenda of tax cuts, deregulation, tariffs, and energy dominance. Americans can rest assured that after the short-term disruptions of Operation Epic Fury are behind us, America’s economic resurgence is set to only accelerate.”
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 | Apr 2, 2026 | Economy, News
By Matthew Holloway |
Arizona households are carrying higher debt, seeing declining credit scores, and falling behind on payments at rates above the national average, according to a new analysis from the Common Sense Institute of Arizona (CSI).
The report, which examines credit data and financial trends, found that Arizona’s average credit score dropped by seven points in 2025, placing the state 30th nationally with an average score of 666.
The findings also show long-term growth in household debt. Since 2003, per capita debt in Arizona has increased by 129%, reaching approximately $74,000—one of the largest increases among U.S. states.
Across major categories, Arizona borrowers carry higher balances than the national average. Mortgage debt per capita is 22% higher, while auto loan balances are 7% higher and credit card debt is 8% higher, according to the report.
Missed payments are also more common in Arizona. The report found higher delinquency rates at multiple stages, including accounts 30, 60, and 90 days past due, as well as higher levels of derogatory marks on credit histories compared to national benchmarks.
The analysis also includes a measure of “Household Liquidity Resilience” that assesses households’ ability to withstand financial stress. By that measure, Arizona households are estimated to be 23% less prepared for financial disruptions than the national average. The report identifies the source of this unreadiness emerging from “generally higher than average debt, higher change of delinquency, and a lower cash cushion than the average U.S. household.”
Zach Milne, senior economist at CSI, said the data reflects ongoing financial strain tied to rising costs and borrowing conditions.
“Arizona households are facing residual financial pressure from post-pandemic inflation on top of higher borrowing costs, which continue to strain budgets,” Milne said. “Declining credit scores, rising delinquency rates, and above-average debt levels all point to broader affordability challenges across the state.”
He added, “As households absorb higher costs for housing and other essential expenses, many are becoming more vulnerable to financial shocks and less financially resilient.”
The report compares Arizona’s credit and debt trends to national data, highlighting differences in borrowing levels, repayment patterns, and financial stability indicators.
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.
