After reporting gains in August, Arizona Construction employment posted a loss of 1,900 in September, according to the latest report published by the Arizona Office of Economic Opportunity.
Construction employment has gained 5,800 jobs year-over-year.
The state’s seasonally adjusted unemployment rate held steady once again at 4.9% in September. The national unemployment rate rose to 4.2%, up from 4.1% in August.
Month-over-month, Arizona’s not seasonally adjusted total nonfarm employment rose by 23,700 jobs, an increase of 0.7%. YoY, NSA total nonfarm employment gained 22,700 positions, also 0.7%.
“Prior to the pandemic (2010-2019), private sector employment averaged a gain of 5,500 jobs in September,” the report states.
Private employment added 1,500 jobs. Only five of the 12 general sectors reported increases. As it was in August, Government was once again the leading category by an overwhelming margin, posting additions of 22,200. Private Education Services was the leading private sector, coming in with 5,400. Construction’s drop of 1,900 positions made it the second-lowest performing sector after Health Care & Social Assistance, which fell by 2,400.
Construction’s YoY gain of 5,800 jobs put the sector in third place behind Health Care & Social Assistance’s 12,500 and Professional & Business Services’ 9,400 position gains.
Leisure & Hospitality posted the greatest YoY losses in September at 7,800. Other sectors with significant YoY drops were Financial Activities and Government, which were down 6,100 and 3,200 positions, respectively. Manufacturing closed out YoY declining sectors, down 1,100.
Construction Employment
Statewide construction employment totals 228,200, down from 230,100 in August. In September 2025, the sector reported 222,400 jobs.
The Arizona Construction sector features three major segments: Construction of Buildings, Heavy and Civil Engineering, and Specialty Trade Contractors. There are currently 52,400 jobs in Construction of Buildings, which is down 600 MoM and up 4,000 from August 2025. Heavy and Civil Engineering reported 27,000 for the month, down 300 MoM and down 400 YoY. Specialty Trades was at 148,800, a decrease of 1,000 from the previous month and an increase of 2,200 YoY.
Construction jobs in the Phoenix Metro Area (Phoenix-Mesa-Chandler) dropped by 1,700 over the course of the month, falling from 185,600 to 183,900. The September 2025 total was 178,000. Metro Tucson reported 20,400, a decrease of 400 for the month. The YoY total was unchanged.
Yuma, Flagstaff, Prescott-Prescott Valley, Lake Havasu City-Kingman and Sierra Vista-Douglas combine Mining and Construction jobs in reporting their sector totals. Yuma and Flagstaff were unchanged for the month, with Yuma at 4,000 and Flagstaff at 3,100. Prescott-Prescott Valley fell by 100 to 7,300; Lake Havasu City-Kingman was unchanged at 4,7800, as was Sierra Vista-Douglas with 2,000.