The latest jobs report issued this week by the Arizona Department of Administration shows a decline in the unemployment rate. The Arizona unemployment rate fell to its lowest level in four years as we added 22,700 nonfarm jobs. This marks the third consecutive month that the unemployment rate has decreased.
For the first time since November 2008, the unemployment rate has dropped below 8.0%. The U.S. seasonally adjusted unemployment rate decreased two-tenths of a percentage point from 7.9% in October to 7.7% in November. A year ago the Arizona seasonally adjusted rate was 9.1%, and the U.S. rate was 8.7%
Arizona’s jobless rate has dropped 3.4 percentage points from its peak in January 2010. According to the report, job growth has been broad-based and steady throughout 2012. Arizona added close to 60,000 jobs since January.
One in every 7 jobs created nationwide last month was generated in Arizona.
The Private Sector accounted for 59,100 of the Total Nonfarm job gains. This is the largest over-the-year gain since January 2007 and the 9th consecutive month of over-the-year private sector growth above 2.0%. Government accounted for the remaining 500 jobs over the year.
Gains were observed in nine of the eleven major sectors with two showing losses.
Arizona’s Workforce and Employment Report:
Professional and Business Services (PBS) gained 5,000 jobs (1.4%). This is well above the ten-year average (’02-’11) of 1,300 jobs. All three of the subsectors had above-average November job gains with Administrative and Support and Waste adding the most (3,400 jobs). Professional, Scientific and Technical Services added 1,500 jobs while Management of Companies and Enterprises added 100 jobs.
Education and Health Services (EHS) added 1,900 jobs. Gains in November are typical for this sector, historically averaging 1,600 jobs. Above-average November job gains could be compensating for lower-than-expected gains in this sector in October. Educational Services gained 300 jobs while Health Care and Social Assistance added 1,600 jobs.
Financial Activities gained 1,700 jobs as subsectors across the board posted job growth. These gains were seen in the sectors related to refinancing and some rental and leasing activity. The Finance and Insurance subsector gained 1,100 jobs. Real Estate and Rental and Leasing had an atypical gain of 600 jobs. This could be compensating for above-average losses in October.
Leisure and Hospitality (L&H) gained 1,100 jobs. This was below the historical average (’02-’11) of 2,000 jobs. Within the subsectors, Accommodations and Food Services posted strong gains (2,800 jobs). These gains were slightly offset by losses within Arts, Entertainment, and Recreation (-1,700 jobs).
Government added 900 jobs in November, most of which came from State Education (500 jobs) and Local Education (1,400 jobs). Unreported non-education sectors within State (-200) and Local (-200) government lost jobs resulting in a net gain of 300 jobs in the State government and 1,200 jobs in the Local government. These gains were offset by losses in Federal Government (-600 jobs).
Construction was the only industry to post losses, shedding 2,800 jobs over the month. It is not uncommon for this sector to experience losses during November. Historically, Construction averaged losses of 2,300 jobs. Specialty Trades lost 2,600 jobs while Construction of Buildings lost 200 jobs and Heavy Construction was flat.
Other Services and Information gained 900 jobs each. Historically, these sectors average gains of only 300 and 600 jobs respectively in the month of November.
Manufacturing added 300 jobs, essentially from job gains in Durable Goods.
Natural Resources and Mining remained flat over the month. Over the Year Total Nonfarm posted over-the-year employment gains of 59,600 jobs (2.4%). This is the largest over-the-year employment gain since February 2007. The year-to-date average Nonfarm employment gain as of November is 2.05%.
Professional and Business Services (PBS) recorded the largest over-the-year gain among all sectors adding 18,000 jobs (5.2%). This is the largest PBS over-the-year gain since January 2007. The majority of PBS gains were in Administrative and Support and Waste (13,500 jobs). Professional, Scientific, and Technical Services gained 4,900 jobs while Management of Companies and Enterprises lost 400 jobs.