by Matthew Holloway | Apr 27, 2026 | Economy, News
By Matthew Holloway |
Arizona’s job growth has fallen behind national trends over the past year, with the state recording a net loss of jobs and rising unemployment, according to a new report from Republicans on the Joint Economic Committee.
The February employment update for Arizona found the state added approximately 11,000 jobs month-over-month, but posted a net loss of about 300 jobs over the previous 12 months.
The report ranked Arizona 24th in the nation for job growth during that period.
Arizona’s unemployment rate rose to 4.6 percent, up from 4.2 percent one year earlier, while the state’s labor force participation rate declined to 61.7 percent, down 0.4 percentage points year-over-year.
Nationally, the labor market continued to expand, with U.S. payrolls increasing by roughly 178,000 jobs in March, while the national unemployment rate remained lower at approximately 4.3 percent.
The report indicates Arizona’s recent performance has lagged the national pace on several key labor metrics, including year-over-year job growth and unemployment trends.
At the same time, the data shows continued monthly job gains in Arizona, reflecting ongoing hiring activity despite weaker longer-term growth.
Other analyses have also pointed to slowing job growth in the state. A December 2025 update from the Common Sense Institute found Arizona’s job growth had moderated significantly compared to earlier post-pandemic years.
Separately, the Arizona Chamber Foundation reported that job growth in 2025 was minimal following revisions to earlier employment data.
Conversely, state officials have highlighted other economic indicators in recent months. Governor Katie Hobbs’ office cited a report ranking Arizona second nationally in overall economic performance, which includes measures such as population growth, domestic migration, and gross domestic product.
The Joint Economic Committee report focuses specifically on labor market conditions, including employment levels, unemployment, and workforce participation.
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 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 Matthew Holloway | Apr 11, 2026 | News
By Staff Reporter |
Arizona House Republicans are raising concerns about Governor Katie Hobbs’ recently released state energy plan, arguing it prioritizes solar development and government programs over housing availability and energy affordability.
In a press release, the Arizona House Republican Caucus said the plan advances policies that emphasize utility-scale solar projects, expanded renewable energy deployment, and the use of state-owned land for energy infrastructure.
The criticism follows the rollout of the governor’s broader energy strategy, which includes 31 recommendations developed by the Arizona Energy Promise Task Force to address rising energy demand, data center growth, and utility costs across the state.
According to House Republicans, the plan promotes solar development on state land, including areas near existing communities, rooftop solar installations on government buildings, and participation in virtual power plant programs.
Republican lawmakers cautioned that these proposals could affect the availability of land for residential development. Citing data from the Common Sense Institute, they noted that the Hobbs administration has “identified land closest to existing residential areas as ‘best’ for solar development,” adding that approximately 276,000 acres of state land within 10 miles of incorporated cities and towns could support up to 200,000 housing units.
House Majority Leader Michael Carbone (R-LD25) said the administration’s plan emphasizes renewable energy projects and related investments while raising concerns about impacts on housing supply and costs to taxpayers.
He explained in a statement, “Hobbs is calling this an all-of-the-above energy plan. It’s not. It’s a solar-heavy political plan that puts green industry insiders ahead of taxpayers, pushes utility-scale solar onto state land that could support badly needed housing, and says nothing about lowering gas prices for Arizona families. When Hobbs says ‘all of the above,’ what she means is more wind and solar.”
The governor’s office has described the energy plan as part of a broader effort to address affordability and reliability while bringing together stakeholders from utilities, industry, and government.
In separate announcements, the Hobbs administration has highlighted programs focused on lowering energy costs, including efficiency upgrades and rebate initiatives designed to reduce utility bills for Arizona households.
Carbone criticized Hobbs’ energy plan, stating, “You cannot claim to have an energy plan for Arizona while ignoring gasoline prices, fuel supply, and the infrastructure needed to keep this state moving. This report does not confront boutique fuel problems, does not address refinery or pipeline capacity, and does not even include the industry that supplies the fuel Arizona families and businesses rely on every day. That is not all of the above. That is selective politics dressed up as policy.”
He added, “Her report is long on politics and short on answers. It does not lower costs. It does not increase housing supply. It does not put taxpayers first. House Republicans are focused on affordability, reliability, and policies that serve Arizona families, not a narrow political agenda.”
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.
