Employment in the Arizona Construction sector posted a second consecutive month of solid gains in June, rising by 2,900 positions, according to the latest report published by the Arizona Office of Economic Opportunity.
Construction employment year-over-year is up by 2,300.
The state’s seasonally adjusted unemployment rate edged upward to 4.9% after coming in at 4.8% in May.
The national unemployment rate dipped to 4.2% after having been reported at 4.3% in March, April and May. In June 2025, Arizona had a seasonally adjusted rate of 4.3%. The national rate was 4.1%.
Month-over-month, Arizona not seasonally adjusted total nonfarm employment fell by 46,000 jobs, or -1.4%. Year-over-year, NSA total nonfarm employment lost 27,900 jobs, or -1.9%.
“Prior to the pandemic (2010-2019), NSA nonfarm employment lost 51,600 jobs on average in June,” the report states.
Private employment lost 9,800 jobs, with six of the 12 total sectors tracked showing losses. Government dropped more positions than all other declining sectors combined by shedding 36,900 jobs, led by the State Government subsector’s decline of 9,200 and Local Government’s loss of 28,200, both of which were fueled primarily by seasonal losses in the Education category.
The next two largest declining sectors were Leisure and Hospitality dropping 11,100 and Private Educational Services’ loss of 4,800 jobs.
Trade, Transportation and Utilities saw June’s largest gains, adding 4,700 positions. Construction was the second leading sector at 2,900. Other gaining sectors saw increases of 300 or fewer positions, and Information was flat.
Year-over-year, eight of the 12 sectors reported gains, led by Health Care & Social Assistance adding 16,800. Construction’s YoY gain totals 2,300, and the sector’s 1.0% YoY gain in Arizona slightly bested the 0.7% national average for Construction.
The sectors with year-over-year losses were led by Government at -6,500. Manufacturing, which is considered closely related to Construction, had the fewest losses among declining sectors with -1,800.
Construction Employment
Statewide construction employment totals 227,700 jobs, up from a total of 224,800 for May. In June 2025, the sector reported 225,400. Construction employment is up 2.3% YoY and up 2.9% MoM.
The Arizona Construction sector features three major segments: Construction of Buildings, Heavy and Civil Engineering, and Specialty Trades Contractors. There are currently 51,900 jobs in Buildings, which is up 600 from May and up 3,000 from June 2025. Heavy and Civil Engineering was up 300 for the month at 26,900 and was down 600 for the year. Specialty Trades gained 2,000 over the month for a total of 148,900, and the segment shed 100 year-over-year.
Construction jobs in the Phoenix Metro Area (Phoenix-Mesa-Chandler) increased by 2,800 over the month for a total of 183,000. The June 2025 number was 180,400. Metro Tucson rose by 200 in June, ending at 20,400, which is a loss of 100 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 and Sierra Vista-Douglas were both unchanged, ending at 4,000 and 2,100, respectively. Flagstaff, Prescott-Prescott Valley and Lake Havasu City-Kingman all added 100. In order, those three areas reported 3,200, 7,400 and 4,800 construction jobs.