Phoenix Closes in on Record Workforce Size

Employers are making a strong return in the Phoenix metro area, adding 126,500 jobs in September which accounts for 88 percent of job growth in Arizona for the month in year-over-year data comparisons.  In total, Arizona added 143,900 jobs in the month as reported October 21 by the Arizona Office of Economic Opportunity.

Phoenix has recovered all jobs lost in the pandemic over the last 18 months. Greater Phoenix total employment squeaked past February 2020, the last month measured before the pandemic hit in March 2020.

The Greater Phoenix workforce stands at 2,231,800, compared to 2,105,300 last September and 2,231,400 in February 2020. Phoenix is within 0.3 percent of setting a new record to top December 2019’s 2,238,300 total workforce.

“Our economy is healthy and getting stronger as more of our residents return to work, earning higher wages to support their families,” said Phoenix Mayor Kate Gallego.  “We have recovered all jobs lost during the COVID-19 pandemic thanks to smart policies and the resiliency of private-sector employers.”

Private sector employment gains were seen in Leisure and Hospitality up 19.3 percent; Professional, Technical and Scientific up 11.6 percent; Education and Health Services up 7.8 percent. Construction was up 3.4 percent and Manufacturing was up 3 percent.

The seasonally unadjusted unemployment rate for the Phoenix metro in September, 3.8 percent, dropped nearly one percent compared to August and 3.1 percent compared to August 2020. It stood at 4.7 percent in August 2021 and 8.2 percent in September 2020.

The September Paychex-IHS Markit Small Business Employment Watch reported Phoenix small businesses increasing hiring 6.7 percent in September 2021 compared to a year earlier. That increase placed Greater Phoenix fourth in the nation in small business growth. Small business wages in Phoenix grew 5.3 percent in September over August, the third-highest in the nation.

The Paychex monthly data is reflecting the long-range trend that has Greater Phoenix placed near the top every month for the past several years, including during the pandemic, where Greater Phoenix outpaced the nation and the region.