Phoenix city businesses created 42% of new Arizona jobs over last 5 years
New hires in August hit 60,500 in the Phoenix metro area, a gain of 2.9 percent over last year, according to the Arizona Office of Economic Opportunity. The unemployment rate for the metro climbed slightly to 4.8 percent from 4.6 percent in July. That’s almost 8 of 10 new jobs in Arizona coming in the Phoenix-Mesa-Scottsdale metro.
The Phoenix metro total workforce in August was 2.12 million, compared with 2.06 million in August 2018.
Education, bioscience and healthcare had the biggest job gains, adding 18,700 jobs since last August. Education services—not including public school hiring—added 8,000 jobs; bioscience and healthcare added 10,700.
Solid job growth has been the pattern for Valley cities over the past five years. The city of Phoenix is 24 percent of the state’s population, yet businesses in the city accounted for 42 percent of all new jobs in Arizona over the past five years.
Phoenix Community and Economic Development is actively recruiting new businesses and helping expand existing businesses in the city. According to OEO data and numbers from the U.S. Bureau of Labor Statistics, over the five-year period from August 2014 to July 2019,
City staff has been directly involved in creating 1 out of 6 new jobs in Arizona, or nearly 4 of 10 new jobs in the city of Phoenix. These new jobs are often a joint effort with its partners, Arizona Commerce Authority and Greater Phoenix Economic Council.
The city staff, was involved in creating over 10,000 of the 70,000 new Arizona jobs in the past 12 months, and over 54,000 new jobs during the last five years.
In the metro area, construction hiring continues at a robust 9.5 percent pace, with 11,900 new hires in August compared to a year earlier. The majority of those hires were in specialty trades, where the labor shortage is acute in the Phoenix area.
Manufacturing posted its 36th consecutive month of hiring gains, a 5.8 percent jump with 7,500 new jobs in the sector. The Phoenix metro has been continually hiring in industrial sectors, while the hiring remains flat to slightly rising across the U.S in the sectors.
Despite some financial service firms announcing Valley layoffs, the sector workforce posted a net gain of 900 jobs in year-over-year hiring. However, in one of the largest year-over-year hiring declines since 2009, 2,700 jobs were lost in banking during August.
Business and professional services, including scientific and technical professionals, added 6,000 new jobs in August compared to last year. Despite it being a shoulder season, leisure and hospitality hiring added 4,900 jobs with 3,800 of those in restaurants and bars, a healthy 5.6 percent gain.
August is typically a slow month for new Arizona hires, reflected in an 11,400 statewide decline in jobs from July, but an increase of 78,200 compared to last August. The OEO reports that the drop in new hires in August was smaller than what was typically experienced over the last 10 years.
Phoenix is the fifth-largest American city, home to 1.7 million people. For the third year in a row, it is America’s fastest-growing city. Phoenix was named the 2017 “Highest Performing City” by Governing Magazine. Key industries include advanced business and financial services, technology, health and life sciences, hospitality, and advanced manufacturing. At 517 square miles, with world-renowned mountain trails and opportunity for diverse lifestyles, Phoenix is nearly one half the size of Rhode Island. An average of around 100 people every day choose Phoenix to be their new home. Founded in 1868, Phoenix’s wild-west roots grew to host major events in a dynamic downtown for the Super Bowl, NCAA championships and music festivals. For more information, visit Phoenix.gov. For economic development information, visit Phoenix.gov/EconDev.