By Roland Murphy for AZBEX
Employment in the Arizona Construction sector rose by 300 jobs in March, following the addition of 2,900 jobs in February, according to the latest report published by the Arizona Office of Economic Opportunity.
The state’s seasonally adjusted unemployment rate increased to 4.7%.
The national unemployment rate fell to 4.3%, down from 4.4% in February. In March 2025, Arizona had a seasonally adjusted rate of 4.2%. The national rate was also 4.2%.
Month over month, Arizona’s not-seasonally adjusted total nonfarm employment decreased by 10,900 jobs, or -0.3%. Year over year, NSA total nonfarm employment decreased by 17,800 jobs, or -0.5%.
“Prior to the pandemic (2010-2019), NSA nonfarm employment gained 10,800 jobs on average in March,” the report states.
The private sector shed 9,200 jobs, with only three of the 12 sectors tracked showing gains. Health Care & Social Assistance led gaining sectors by adding 1,400, followed by Other Services with 1,300 and Construction’s addition of 300. Trade, Transportation & Utilities led the declining sectors with a loss of 3,600 jobs.
Government employment dropped by 1,700 jobs, most of which occurred in Local Government’s loss of 1,200, cutting into February’s addition of 6,500.
Year-over-year, five of the 12 sectors reported gains, led by Health Care & Social Assistance’s adding 10,400.
The sectors with year-over-year losses were led by Leisure & Hospitality’s decrease of 8,500 jobs. Construction was down by 3,300 YoY.
Construction Employment
Statewide construction employment totals 223,700 jobs, up from a total of 223,400 for February. In March 2025, the sector reported 227,000.
The Arizona Construction sector features three major segments: Construction of Buildings, Heavy and Civil Engineering, and Specialty Trades Contractors. There are currently 51,300 jobs in Buildings, which is up 100 from February and up 1,400 from March 2025. Heavy and Civil Engineering was down 200 for the month at 27,000 and was up 100 for the year. Specialty Trades added 400 over the month for a total of 145,400, and the segment shed 4,600 year-over-year.
Construction jobs in the Phoenix Metro Area (Phoenix-Mesa-Scottsdale) increased by 100 over the month for a total of 179,300. The March 2025 number was 181,900. Metro Tucson was unchanged in March, remaining at 20,300, which is a loss of 800 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 added 100 to reach 4,000. Flagstaff was unchanged at 3,100. Prescott-Prescott Valley added 100 jobs to finish at 7,200. Lake Havasu City-Kingman was unchanged at 4,700, and Sierra Vista-Douglas added 100 to end at 2,100.