Arizona unemployment ticks up in September

(The Center Square) — Unemployment slightly increased in Arizona in September but still remains well below the national average.

From August to September, unemployment increased from 3.4% to 3.5%, and the federal unemployment rate is at 4.1%, according to seasonally adjusted figures.

The public sector was the biggest winner with jobs month over month, with 20,400 jobs added, likely due to the school year starting, according to non-seasonally adjusted numbers. According to the report, over 11,000 of those are in the state government. The report also noted that the 29,300 jobs added is slightly above the 28,800 average added in September, which is based on pre-pandemic numbers from 2010-2019.

“Employment gains in the government sector occurred primarily within State Government (11,300 jobs), which is typical this time of year as local and state education hiring increases as schools begin their new years,” the report stated.

Meanwhile, health care and social assistance added 3,300 jobs. However, construction had the biggest cut with 1,700 jobs down. Financial activities lost 800 jobs and leisure and hospitality lost 600 jobs.

Since September of 2023, the biggest sector wins were health care and social assistance, which added over 25,000 jobs, professional and business services with nearly 12,000 jobs and trade, transportation and utilities adding 11,100 according to non-seasonally adjusted nonfarm numbers. Seasonal adjustments account for jobs that will typically go up or down significantly each year, like teaching.

However, the biggest cuts year-over-year have been in manufacturing, with 2,700 jobs cut in the sector year-over-year. This comes as the state continues to bolster apprenticeship efforts and attract companies to the state.

Still, the outlook seems positive for the state, as it added 65,900 jobs since last year.