Employment in the Arizona Construction sector dramatically led those with gains in May, posting an increase of 2,700 positions, according to the latest report published by the Arizona Office of Economic Opportunity.
The jump in employment cut the sector’s year-over-year losses down to 900.
The state’s seasonally adjusted unemployment rate, however, nudged up to 4.8% after sitting at 4.7% for March and April.
The national unemployment rate held the 4.3% rate seen in March and April. In May 2025, Arizona had a seasonally adjusted rate of 4.3%. The national rate was also 4.3%.
Month-over-month, Arizona’s not-seasonally adjusted total nonfarm employment increased by 16,000 jobs, or 0.5%. Year-over-year, NSA total nonfarm employment increased by 49,805 jobs, or 1.3%.
“Prior to the pandemic (2010-2019), NSA nonfarm employment lost 6,700 jobs on average in May,” the report states.
The private sector lost 3,900 jobs, with six of the 12 sectors tracked showing losses. Government dropped more positions than all other declining sectors combined by shedding 10,400 jobs, led by the State Government subsector’s decline of 8,400.
The next two largest declining sectors were Private Educational Services’ loss of 3,900, followed by Professional and Business Services dropping 3,200.
Construction’s gain of 2,700 far eclipsed the next leading sector, Manufacturing, which posted a gain of 1,000.
Year-over-year, half of the 12 sectors reported gains, led by Health Care & Social Assistance, adding 15,900. Construction’s YoY loss totals 0.4%. Nationally, the sector is up 0.7% for the same period.
The sectors with year-over-year losses were led by a decrease of 5,200 jobs in Financial Activities. Construction’s YoY loss of 900 was the second smallest in the group of declining sectors.
Construction Employment
Statewide construction employment totals 222,800 jobs, up from a total of 222,100 for April. In May 2025, the sector reported 225,700. Construction employment is down 0.9% YoY and up 1.2% MoM, with a YoY percent change of -0.4%
The Arizona Construction sector features three major segments: Construction of Buildings, Heavy and Civil Engineering, and Specialty Trades Contractors. There are currently 51,00 jobs in Buildings, which is up 100 from April and up 5,200 from May 2025. Heavy and Civil Engineering was up 200 for the month at 26,600 and was down 700 for the year. Specialty Trades gained 2,400 over the month for a total of 146,800, and the segment shed 2,700 year-over-year.
Construction jobs in the Phoenix Metro Area (Phoenix-Mesa-Scottsdale) increased by 2,600 over the month for a total of 180,300. The May 2025 number was 180,700. Metro Tucson rose by 400 in May, ending at 20,400, which is a loss of 300 year-over-year.
Yuma, Flagstaff, Prescott-Prescott Valley, Lake Havasu City-Kingman and Sierra Vista-Douglas combine Mining and Construction jobs in reporting their job sector totals. Yuma, Flagstaff and Prescott-Prescott Valley were all unchanged, with Yuma reporting 4,000, Flagstaff reporting 3,100 and Prescott-Prescott Valley reporting 7,300.
Lake Havasu City-Kingman lost 100, ending with 4,700, and Sierra Vista-Douglas held steady at 2,100.