(The Center Square) – Arizona’s job growth increased at more than double the national pace from December 2024 to December 2025, a new report shows.
The Common Sense Institute of Arizona released a report detailing Arizona’s latest employment figure.
Year over year, Arizona gained 24,000 jobs and grew at a 0.75% rate, compared with the national average of 0.34%.
Zachary Milne, a CSI senior economist, told The Center Square this week that he projected Arizona would see between 1% and 2% year-over-year growth in employment.
Arizona has relied on the education and health sector for job creation during this period, he said.
Milne estimated 70% of all Arizona job growth came from this sector.
Without this sector, Arizona’s employment growth would be “stagnant,” Milne said.
Job growth in Arizona has slowed compared with 18 months ago, he said.
Milne added that this trend is happening across America.
Arizona has continued to experience a decline in manufacturing, he noted.
The CSI report found that, year over year, Arizona lost 2,600 manufacturing jobs, representing a 1.3% decline in the industry.
Arizona’s biggest industry is trade, transportation and utilities at nearly 20%, Milne said.
Year over year, this sector declined by 1.2 percentage points.
Private sector wages in Arizona increased by 3.5% year over year, ranking 23rd in America, the report said. Wages increased from $33.90 to $35.10 per hour.
Despite these increased earnings, Arizona wages, when adjusted for inflation, have declined by 3.6% since April 2020, according to the report.
Looking at the job numbers month-to-month, Arizona gained 6,400 jobs from November 2025 to December 2025. The state’s current unemployment rate is 4.3%, which ranks 31st nationwide
The state’s fastest-growing industry was construction month-over-month, which added 3,900 jobs and grew by 1.75%.
The mining and logging industry was the second-fastest-growing sector during this period, increasing by 0.61%.
The report cautioned against relying on monthly figures to assess Arizona’s current economic condition. It said Arizona has experienced positive job revisions in the past.
For example, Arizona initially reported 2,200 jobs in September 2025, but after revisions, the state reported 3,500. This represents nearly a 60% increase in jobs.
