by Staff Reporter | Aug 1, 2026 | Economy, News
By Staff Reporter |
Inflation cooled for the Phoenix metro area last month, and expenditures went up.
The Common Sense Institute (CSI) reported that Phoenix metro’s Consumer Price Index rose 2.8% year-over-year in June, a slight reduction from a 3% reading in April. Energy prices dropped by more than 6% in a single month, attributed to easing tensions with Iran.
CSI noted that Arizona’s growth rate was slower than the rest of the nation. Arizona’s home prices have also cooled while home prices climb nationally.
Over the past seven years, prices have increased in the Phoenix metro area by more than 33%. The typical household pays nearly $1,700 more a month on average for its regular expenditures than they did in the last year before the pandemic hit: around $5,200 to nearly $6,900. CSI estimated that the average Phoenix metro household would have been paying just $600 more compared to 2019 if inflation had followed a steady 2% increase rate these past seven years.
From the national perspective, the Joint Economic Committee (JEC) reported that headline personal consumption expenditure price index inflation rose to nearly 4% from June 2025 to last month. The Federal Reserve’s target for that metric is 2%. Core personal consumption expenditure price index inflation was reported to be nearing 3.3%.
Services inflation rose by 0.13% and goods inflation dropped by 0.63%.
Real personal consumption expenditures increased by $68 billion, or 0.4%. Real personal consumption expenditures on all services increased by $28 billion, or 0.26%, and real personal consumption expenditures on all goods increased by $42 billion, or 0.73%.
The JEC reported that the nominal personal savings rate declined by 0.1% to 2.7%. Headline personal income increased by $55 billion, or 0.2%, and real disposable income per capita increased by nearly 0.3%.
U.S. News & World Report ranked Arizona fourth for economy in its latest Best States annual report for 2026. This marked the highest ranking achieved by the state this past year among all scorecard metrics. The state ranked high for business environment, seventh; growth, seventh; and employment, 17th.
Arizona also ranked 33rd for fiscal stability and 42nd for opportunity: 28th for economic opportunity, 32nd for equality, 35th for affordability, 30th for long-term fiscal stability, and 33rd for short term fiscal stability.
All metric rankings tallied, Arizona came in 34th overall.
Elsewhere, Arizona ranked 21st for healthcare, 23rd for infrastructure, 29th for crime and corrections, 41st for natural environment, and 43rd for education.
The Arizona Commerce Authority issued a new report this month indicating that Arizona is exceeding its goals for the 2026 fiscal year: more than 26,000 potential new jobs added (131% of goal), nearly $110 billion in capital expenditures (2,749% of goal), and more than $81,000 in wages (137% of goal).
Yet, Arizona’s unemployment rate has been outpacing job growth. The state was one of seven states to experience an increase in unemployment, and its rate recently hit a high of 4.9%, numbers not seen since the pandemic. Labor force participation also fell to a total nearing a 10-year low.
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by Staff Reporter | Jul 25, 2026 | Economy, News
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.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Staff Reporter | Jul 24, 2026 | Economy, News
By Staff Reporter |
A new data analysis.shows that Arizona is facing more of an affordability crisis than other states as the 2026 elections heats up.
Arizona households presently carry above-average debt across auto loans, credit cards, and mortgages. Arizonans are also falling behind on payments at rates well above the national average, according to new analysis by the Common Sense Institute (CSI).
In Arizona, CSI found that auto loan debt is 7% higher, credit card debt is 8% higher, and mortgage debt is 22% higher than the national average.
Arizona also sits at the bottom half of the nation in terms of average credit score, which is 666. The state ranks 30th overall, having fallen seven points in 2025 and experiencing the 10th-fastest drop in average household credit score among all states.
Arizona experienced the second-largest increase in per-capita debt out of 11 reported states. The state has experienced a rise in per-capita debt amounting to nearly 130% since 2003. Only Texas reported a worse increase in per capita debt, at 148%.
That metes out to an average per-capita household debt of $74,000. CSI reported that this average debt in Arizona has largely been driven by mortgage debt.
The same can be said for households elsewhere on that point. Nationally, household debt neared $20 trillion by the end of last year — much of that driven by mortgage debt ($13.2 trillion, an increase of 4.5%), followed by auto loans and student loan balances ($1.7 trillion respectively, reflecting increases of 0.7% and 3%) and credit card debt ($1.3 trillion, an increase of 5.5%).
Arizona didn’t lead by all negative metrics. Arizona’s higher education-related debt was 3% lower than the national average, and student loan debt was 8% lower than the national average.
And according to CSI, less than 23% of Arizona households have liquidity resilience, or ability to handle potential credit problems — far less than the average household nationwide. CSI attributed this to Arizonans possessing higher-than-average debt, higher delinquency, and a lower cash cushion than the average household in the nation.
The latest data from the Consumer Price Index also reflected that Arizona had more sluggish growth than the rest of the nation. Yet, Arizonans have been spending an average of more than $1,000 more per month than they would have if inflation had risen steadily at 2% since December 2020.
The average Phoenix-area household was spending about $6,900 per month as of June 2026, compared to the projected $5,800 under a 2% inflation trajectory.
In December 2020, the average Phoenix-area household was spending about $5,200.
The findings contrast with Gov. Katie Hobbs’ recent messaging on Arizona’s economy.
In April, Hobbs announced that Arizona ranked second in the nation for economic performance and fifth for economic outlook in the American Legislative Exchange Council’s annual Rich States, Poor States report. She also argued that her administration’s policies have lowered costs for working families.
But these findings add to a growing body of affordability and economic data that critics say undercut those claims.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Jul 21, 2026 | Economy, News
By Matthew Holloway |
Rep. Abe Hamadeh (R-AZ08) praised a new $100 billion investment by Taiwan Semiconductor Manufacturing Company (TSMC) that will add four advanced semiconductor fabrication plants at the company’s north Phoenix campus and raise its total planned Arizona investment to $265 billion.
The White House and Department of Commerce announced the expansion Thursday, saying it resulted from a trade and investment agreement reached between the United States and Taiwan earlier this year.
The four additional facilities will bring TSMC’s planned American footprint to 12 advanced semiconductor manufacturing and packaging facilities, all located in Arizona. The Arizona Commerce Authority said the expanded Phoenix campus is now expected to include 10 semiconductor fabrication plants, two advanced packaging facilities, and a research and development center.
Hamadeh, whose Eighth Congressional District includes the TSMC campus, praised President Donald Trump’s manufacturing agenda and said the project would create new employment opportunities for residents of the West Valley.
“These targeted investments in Arizona’s Eighth Congressional District aren’t just welcome — they’re exactly the kind of bold, America-First moves our district needs,” Hamadeh said in a Thursday announcement.
“My constituents are ready to work, ready to build, and hungry for the high-paying jobs these projects will deliver right here in the Grand Canyon State,” he added.
Hamadeh said he believes veterans should receive priority for employment opportunities connected to the expansion. His office has made economic development and workforce growth central parts of what it describes as a “Peace through Prosperity” agenda.
Commerce Secretary Howard Lutnick said the investment would create tens of thousands of American jobs. The Commerce Department said the expansion is expected to generate significant construction and high-technology employment while increasing domestic production of advanced semiconductors.
TSMC Chairman and CEO C.C. Wei said the expansion is intended to meet growing demand from the company’s American customers and strengthen the domestic semiconductor supply chain. The latest commitment follows a $100 billion expansion announced in March 2025, which raised TSMC’s planned Arizona investment from $65 billion to $165 billion. That expansion added three fabrication plants, two advanced packaging facilities, and an R&D center to the company’s original plans.
TSMC initially announced a $12 billion Phoenix facility in 2020. The company expanded the project to $40 billion in 2022 with plans for a second fabrication plant and increased the commitment to more than $65 billion in 2024 by adding a third plant. The two initial facilities were projected to create approximately 4,500 direct TSMC jobs, while the first three were projected to create 6,000 direct manufacturing jobs and more than 20,000 construction jobs.
TSMC currently employs more than 3,500 people in Arizona. The company’s first Arizona fabrication plant began high-volume production using its N4 manufacturing process during the fourth quarter of 2024. Construction of the second plant’s main structure was completed in 2025, with production using N3 technology targeted for the second half of 2027.
Construction of the second plant’s main structure was completed in 2025, with production using N3 technology targeted for the second half of 2027.
The company broke ground on its third plant in April 2025. That facility is scheduled to manufacture semiconductors using TSMC’s N2 and A16 process technologies, with production targeted to begin by the end of the decade. Before the newest expansion, the Commerce Department finalized an award of up to $6.6 billion in direct funding and made up to $5 billion in loans available under the federal CHIPS incentive program to support TSMC’s first three Arizona plants. The facilities are intended to produce some of the world’s most advanced semiconductors and provide American technology companies with access to domestically manufactured chips.
Hamadeh’s office said the expansion would help establish Arizona’s Eighth Congressional District as the “Silicon Desert” and strengthen the country’s position in semiconductor and artificial intelligence manufacturing.
“This major investment is further proof that the Trump Administration is laser-focused on restoring American manufacturing dominance,” Hamadeh said.
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 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.”
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