PHOENIX — Arizona's job market outpaced the nation in July, adding 2,300 jobs and remaining in positive territory for the year. There are now more than 24,000 more jobs this July compared to the same month last year.
The state's unemployment rate held at 4.9% in July — considerably higher than the U.S. unemployment rate of 4.1%.
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The jobs picture looks healthier overall in 2026 compared to last year. Arizona was losing jobs half the time in 2025, but so far in 2026, May is the only month in the red. However, a closer look at the trend since February shows the number of jobs being added each month is declining.
Doug Walls with Arizona's Office of Economic Opportunity, who compiles the report, said the positive news extends beyond job numbers.
"Fortunately here in Arizona or the Phoenix metro area specifically, we do see the CPI growth slower than that of the U.S. overall, and so those price increases aren't eating into wages as much as they are in other places in the U.S.," Walls said.
Of the more than 24,000 jobs added on an annual basis, just over half are in the healthcare sector. Traditional white-collar jobs are adding nearly the same amount. Construction and warehouse jobs are also growing, but at a slower pace. The sectors losing the most jobs are hospitality, government, and financial activities.
One trend to watch: Arizona's civilian labor force is in a significant decline, dropping by more than 100,000 people since January. The biggest contributors are Baby Boomer retirements and a drop in international migration.
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