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    Home » Trends » Arizona Construction Shed 1,800 Jobs in January
    Trends

    Arizona Construction Shed 1,800 Jobs in January

    Brianna JohnsonBy Brianna JohnsonMarch 22, 2022No Comments3 Mins Read
    Credit: Arizona Office of Economic Opportunity
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    By Roland Murphy and Rebekah Morris for AZBEX

    Arizona’s seasonally adjusted unemployment rate decreased to 3.7% in January, down from 3.9% in December, according to the latest report published by the Arizona Office of Economic Opportunity.

    The national rate increased to 4.0% from 3.9%. In January 2021, the state had a seasonally adjusted rate of 6.1%, and the national was 6.4%.

    The state had a net loss of 44,800 non-farm jobs over the month. “Historically (2012- 2021), nonfarm employment has recorded a loss of 49,800 jobs in January,” the report states. The private sector lost 38,400 jobs in January. Professional and Business Services led declines with 14,100. Private sector historical losses, again from 2012-2021, average 40,800 in in January.

    Construction lost 1,800 jobs for the month. Year-over-year, the sector showed a gain of 4,900.

    All 11 sectors tracked posted year-over-year gains. Leisure & Hospitality led with 46,600 jobs from January 2020 to January 2021. Trade, Transportation & Utilities was second with 33,600. The two other top gaining fields were Professional and Business Services with 9,700 and Education & Health Services with 9,300.

    Construction Employment

    Credit: Arizona Office of Economic Opportunity

    Statewide construction employment totals 178,200 jobs, which increased by 1,800 from December 2021 and increased by 4,900 from January 2020.

    The Arizona Construction sector features three major segments: Buildings, Heavy, and Specialty Trades. There are currently 36,800 jobs in Buildings, which is up 300 from December 2021 and up by 1,300 from January 2020. Heavy Construction dropped 300 over the month for a total of 19,900 and dropped 300 over the year. Specialty Trades fell by 1,800 over the month for a total of 121,500, but the segment gained 3,900 over the year.

    Construction jobs in the Phoenix Metro Area (Phoenix-Mesa-Scottsdale) dropped 1,400 over the month for a total of 138,500. The January 2020 number was 134,800. Metro Tucson construction jobs were down 300 jobs for the month, totaling 17,900. The January 2020 number was 17,400.

    Yuma, Flagstaff, Prescott, Lake Havasu City-Kingman and Sierra Vista-Douglas combine Construction and Natural Resources jobs in reporting their job sector totals. Yuma was changed at 3,500, Flagstaff dropped 100 to 2,800. Prescott was unchanged at 6,700, as were Lake Havasu City-Kingman with 4,200 and Sierra Vista-Douglas at 2,000.

    Market Demand Replaces Slight COVID Decline

    Statewide construction employment has more than recovered the brief and minimal losses inflicted by COVID starting in March 2020. Current levels of employment are still 25.84% off peak employment experienced in the last peak employment period of 2006.

    Demand for construction services is far outpacing the supply of skilled labor. BEX pegs unmet demand at more than 22% of the total industry. Stated another way – Arizona construction could deliver another $4B in output if labor, materials and permitting/plan review roadblocks were removed.

    Year-over-Year change in statewide Construction Employment
    While 2020 started the year strong, the COVID impact was felt quickly in Arizona construction employment with muted gains in April through November 2020. Declines in YOY employment carried December 2020 through March 2021, then increases have been nearly absolute with only a slight decline in YOY employment in November 2021
    ADOA Arizona Department of Administration Arizona Office of Economic opportunity Construction Office of Employment and Population Statistics Unemployment
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