The unemployment rate in Arizona dropped for the first time since April, following increased local hiring in October.
Job reports from the Arizona Workforce Informer for the month of October show that Arizona added 27,400 jobs last month, lowering the unemployment rate for the state to 9.5 percent from September’s 9.7 percent.
One of the main factors in recent job growth has been the expansion of output in Arizona’s economy, economics research professor Lee McPheters said.
“Job growth requires increases in output,” McPheters said. “The economy and output are expanding now, not at a rapid pace, but by enough to create additional demand for workers in some industries.”
The increase to Arizona’s job total is the largest reported in October since 2004 — when the job market grew by 1.6 percent — and the third largest for the month in 10 years. In 2003, there was a 1.2 percent job gain.
The unemployment rate also fell in the Valley, according to the report. The jobless rate decreased from 8.7 percent in September to 8.5 percent in Maricopa and Pinal counties.
The only Arizona regions to report increased unemployment were Mohave and Yuma counties. Unemployment in Mohave County increased to 10.9 percent, up from 10.8 percent in September. Yuma County, with the second highest unemployment rate in the country, increased to 25.8 percent from 23.9 percent.
The national unemployment rate remained unchanged at 9.6 percent.
Growth was seen in every counted sector except the information sector, which is comprised mostly of the publishing and communications fields. The sector reported losing 300 jobs in the state, according to the report.
The largest growths came from the trade, transportation, and utilities sector — adding 7,100 jobs — and the educational and health services sector, which added 6,400 jobs.
This continues a trend of growth in both of these sectors that has occurred throughout the year — 13,400 jobs in education and health services and 12,600 jobs in trade, transportation and utilities.
Despite growth in almost every sector, other services, manufacturing, financial activities, government, and information are still posting job losses for the entire year. The largest reported losses so far are in the government sector, which has lost 8,600 jobs this year, according to the report.
Reach the reporter at michael.reppenhagen@asu.edu
