Full article on AZBigMedia (with updated May numbers by Cooke Multifamily Team’s Research Director Thomas Brophy within the parentheses):
(1) Arizona fared better than U.S. unemployment in April 2020 at 12.6%, as opposed to 14.7% nationally (for May, Arizona was tied for 4th lowest unemployment at 8.9%, behind Utah which was #2 at 8.5%. Texas was 34th at 13%)
(2) Even during the economic boom in 2019, retail never regained all of the jobs lost between 2007 and 2010. Half the jobs lost in April, 128,600 were in those two sectors. The bright spots, groceries and building supplies added 3,000 jobs between the two subsectors. (In May, Retail gained 3.2% or 7,000 jobs)
(3) Phoenix still showed strong job gains in the advanced industry sectors. It’s in those sectors that Phoenix and other metropolitan area cities, and the state focused on new company recruiting efforts over the 10 years since 2010.
a. Manufacturing was flat, no jobs lost in year-over-year comparisons (in May 2020 contracted 4.8% YoY)
b. Aerospace, computer and electronic device production subsectors added 1,000 jobs. (in May the combined sector increased an additional 1,700)
c. Wholesale trade added 1,200. (In May, Wholesale Trade was up 1.9%, 1,600 MoM and up 5.9% or 4,900 YoY)
d. Financial activities added 9,500 jobs (In May, added 500 positions over-the-month, 900 over-the-year but is slightly below January 2020’s peak employment of 204,700 as of May is 202,000)
e. Bioscience healthcare sector added 10,100 new jobs
(4) Between the advanced industries, the Phoenix metro added 22,100 jobs. During 2019, the average month gained over 30,000 jobs in year-over-year comparisons with 2018.
(5) Of all U.S. metros over one million population (51 Metros), Phoenix and Dallas had the lowest year-over-year April job losses, 7.6%, according to U.S. Bureau of Labor Statistics (In May, the Phoenix MSA had the lowest unemployment rate at 8.3%, SLC #6 at 9.4%, Austin was 22nd at 11.4%, DFW #26 at 12.3%, San Antonio was #31 at 12.7% and Houston MSA #36 at 13.9%)
Here’s why Phoenix job numbers show bright spots and resilient economy
It may be hard to convince anyone among the more than 222,500 metropolitan area workers losing jobs in April that there is any good news on the job front.
A post-Great Recession economic development policy change by Arizona, Phoenix, and Valley cities about recruiting jobs succeeded. The April employment report has some bright spots in the dark clouds.
An entire year of Valley job gains was wiped out in 30 days with the metropolitan area unemployment rate climbing from a record low 3.7 percent unemployment rate in December 2019 to a never-seen-before-rise to a seasonally adjusted 12.6 percent in April 2020, according to the Arizona Office of Economic Opportunity.
Compared to the rest of the nation, Phoenix fared much better. Nationally, the unemployment rate hit 14.7 percent. In California, and some metro areas in the rust belt hit around 20 percent and more.