by Matthew Holloway | May 24, 2026 | Economy, News
By Matthew Holloway |
Arizona added 8,100 nonfarm jobs in April, outperforming the national monthly growth rate and ranking 16th among all states and Washington, D.C., according to a new analysis released by the Common Sense Institute (CSI) Arizona. The report, based on the latest Bureau of Labor Statistics data, found that while Arizona’s labor market showed improvement in April, broader employment growth in the state remains historically weak.
According to CSI’s Arizona Jobs and Labor Force April 2026 Update, Arizona posted a monthly employment increase of 0.25%, placing the state 16th nationally for job growth during the month. CSI reported that Arizona added 13,300 jobs over the past year, representing annual growth of 0.41% and marking the first positive year-over-year employment growth recorded in the state since August 2025.
Despite the gains, CSI’s analysis concluded that Arizona’s labor market continues to face longer-term challenges with growth “unusually and persistently slow.”
The report noted that statewide job growth has remained effectively flat over the past two years and follows several months of mixed labor market performance. In CSI’s previous employment update covering March 2026, Arizona lost 2,600 nonfarm jobs and recorded its seventh consecutive month of year-over-year job losses before April’s rebound returned annual growth to positive territory.
Arizona’s manufacturing sector continued to lag behind broader employment gains, while Mining and Logging posted the fastest monthly growth. The sector added 100 jobs over March, an increase of 0.60%. The report noted that “This is a comparatively small sector but it has shown consistent growth over the last five years; today the state’s mining sector employs 44% more workers than it did in June 2020.”
CSI reported that Arizona lost 500 manufacturing jobs year-over-year in April, while 39 states reported declines in manufacturing employment during the same period. The organization noted that manufacturing weakness has persisted both in Arizona and nationally in recent months.
Labor force indicators, including the unemployment rate and the labor force participation rate (LFPR), have remained largely unchanged since March.
Arizona’s unemployment rate held steady at 4.7% in April, matching the rate recorded in March, while labor force participation remained at 61.4%, according to the Bureau of Labor Statistics and CSI’s analysis. State labor data published by the Bureau of Labor Statistics similarly shows Arizona maintaining a 4.7% unemployment rate during April.
The report also found continued wage growth among Arizona workers.
According to CSI, average private-sector wages in Arizona increased 3.8% year-over-year, ranking the state third nationally in annual wage growth. Arizona workers now earn an average of $36.02 per hour, while real wages, adjusted for inflation, increased approximately 0.8% over the past year. By comparison, the average U.S. worker earned $37.41 per hour in April, an increase of 3.57% year over year.
CSI stated that although April represented a positive month for Arizona employment, the state’s labor market remains substantially weaker than the rapid growth experienced during the post-pandemic recovery period and continues to show signs of slower long-term expansion.
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.”
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 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 Ethan Faverino | Apr 19, 2026 | Economy, News
By Ethan Faverino |
The National Federation of Independent Business (NFIB) released a new report detailing the significant economic benefits and tax savings Arizona’s 706,640 small businesses will realize now that the 20% Small Business Tax Deduction has been made permanent.
The report also outlines additional federal tax relief measures signed into law that will support small business growth across the state.
According to the report, making the deduction permanent is projected to generate 26,000 new jobs annually in Arizona over the next 10 years, along with an annual increase in state GDP of $1.4 billion during the first decade. After 2035, the benefits grow even larger, with an expected $2.9 billion annual increase in state GDP and 49,000 new jobs created each year.
Nationally, the permanent deduction is expected to add 1.2 million jobs and $75 billion to U.S. GDP each year for the first 10 years, rising to 2.4 million jobs and $150 billion in annual GDP growth beyond 2035.
“Making the 20% Small Business Deduction permanent was a landmark win for Main Street — and Arizona small businesses are already seeing that benefit,” stated NFIB State Director Chad Heinrich. “But the conformity fight isn’t over, and every provision Arizona fails to adopt is a tax increase on hardworking small business owners.”
Since 2017, the Small Business Tax Deduction has allowed pass-through businesses to deduct up to 20% of their qualified business income. This relief has enabled small businesses to expand operations, hire more workers, invest in employees, and strengthen their communities. The deduction was originally scheduled to expire at the end of 2025, which would have resulted in a significant tax increase on nine out of ten small businesses.
On July 4, 2025, President Trump signed legislation making the 20% Small Business Tax Deduction permanent. This action provides long-term certainty for small business owners, allowing them to retain more of their earnings to reinvest in their operations rather than sending additional funds to federal and state governments. It also helps level the competitive playing field against larger corporations.
In addition to the 20% deduction, the legislation includes several other key provisions. The Section 179 small-business expense deduction was doubled from $1.25 million to $2.5 million and will now be indexed for inflation, allowing businesses to immediately deduct the full cost of qualifying equipment and property.
The 100% bonus depreciation under Section 168(k) was permanently restored, enabling businesses to fully deduct the cost of qualified property in the year it is placed in service rather than spreading depreciation over many years.
Lastly, the estate tax exemption was permanently increased to $15 million for individuals and $30 million for married couples filing jointly, with inflation adjustments. This change helps family-owned small businesses avoid being forced to sell or liquidate assets to pay taxes upon the owner’s death.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
