Arizona Construction employment reversed course in August and posted gains of 2,200 jobs around the state to offset losses in July, according to the latest report published by the Arizona Office of Economic Opportunity.
Construction employment gained 6,900 jobs year-over-year.
The state’s seasonally adjusted unemployment rate held steady at 4.9% in August. The national unemployment rate was also unchanged at 4.1%.
Month-over-month, Arizona’s not seasonally adjusted total nonfarm employment added 34,300 jobs, an increase of 1.1%. YoY, NSA total nonfarm employment gained 17,400 positions, or 0.5%.
“Prior to the pandemic (2010-2019), private sector employment averaged a gain of 18,400 jobs in August,” the report states.
Private employment added 9,800 jobs. Nine of the 12 general sectors reported increases. Government was the leading category by an overwhelming margin, posting additions of 24,500. Private Education Services was a distant second with 2,800. Construction’s 2,200 increase put it fourth place behind Healthcare & Social Assistance, which added 2,600.
Losses in the three declining sectors were all relatively small. Trade, Transportation & Utilities dropped 700, while Financial Activities and Other Services both fell 400.
Construction’s YoY gain of 6,900 jobs put the sector in third place behind Healthcare & Social Assistance’s 13,600 and Professional & Business Services’ 9,000 position gains.
Leisure & Hospitality posted the greatest YoY losses in August at 10,000. Other sectors with significant YoY drops were Financial Activities and Government, which were down 5,500 and 5,000 positions, respectively.
Construction Employment
Statewide construction employment totals 230,300, up from 228,100 in July. In August 2025, the sector reported 223,400.
The Arizona Construction sector features three major segments: Construction of Buildings, Heavy and Civil Engineering, and Specialty Trade Contractors. There are currently 52,100 jobs in Construction of Buildings, which is down 700 MoM and up 3,200 from August 2025. Heavy and Civil Engineering reported 26,800 for the month, up 400 MoM and down 200 YoY. Specialty Trades was at 150,900, an increase of 2,500 from the previous month and 3,900 YoY.
Construction jobs in the Phoenix Metro Area (Phoenix-Mesa-Chandler) increased by 2,200 over the course of the month, rising from 183,400 to 185,600. The August 2025 number was 178,800. Metro Tucson reported 20,800, an increase of 300 for the month and 200 YoY.
Yuma, Flagstaff, Prescott-Prescott Valley, Lake Havasu City-Kingman and Sierra Vista-Douglas combine Mining and Construction jobs in reporting their sector totals. All were unchanged for the month, with Yuma at 4,000, Flagstaff at 3,200, Prescott-Prescott Valley at 7,400, Lake Havasu City-Kingman at 4,800 and Sierra Vista-Douglas at 2,100.