Phoenix unemployment rate reaches 10-year low

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Total non-farm employment in Metro Phoenix reached 2,023,400 payrolls in April 2017, representing an annualized increase of 48,800 jobs. As a result, unemployment was reported at 3.9 percent in April, down 60 basis points from one year prior. This is the lowest unemployment rate we’ve seen in Metro Phoenix in ten years.

Job growth was led by the Leisure & Hospitality and Financial Activities sectors, which added 14,700 jobs and 8,800 jobs, respectively. Mining, Logging & Construction rounded out the top third sector with the most annual growth, adding 5,500 jobs.

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The Trade, Transportation and Utilities, Professional and Business Services, and Education and Health Systems are the top three employment sectors, representing 19 percent, 17 percent and 15 percent of all jobs, respectively. Government and Leisure and Hospitality round out the top five representing 12 percent and 11 percent of all jobs, respectively.

Strong diversification within Metro Phoenix’s employment sectors is expected to remain as Phoenix continues to grow and attract a variety of companies. Just this week, Arizona was recognized as top state for economic competitiveness ranking as the number one mountain region state in Site Selection magazine’s 2017 Prosperity Cup and the top state in economic development within the five-million to eight-million population category by Area Development magazine’s Gold Shovel Awards.

In addition, Phoenix’s high rate of population growth continues to attract various company types. According to the United States Census Bureau, Phoenix had the largest numeric increase of any city between 2015 and 2016.

National unemployment fell by 10 basis points to another cyclical low of 4.4 percent in April. Approximately 211,000 net new jobs were added in the U.S. in April 2017. Year-to-date employment gains of 738,000 jobs indicates steady gains for the year.

Source: JLL Research; U.S. Census Bureau

Visit our Phoenix Research webpage for additional market insight.

About the author

Keeley Buyer, Research AnalystKeeley Byer is a market research analyst for the JLL Phoenix office. With four years of market research experience and eight years of commercial real estate technology experience, he continually tracks and analyzing trends affecting the Phoenix Metro commercial real estate market.

 

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