(JULY 10, 2026) — Arizona’s labor market continues to show resilience, but the latest employment data shows a clear slowdown—especially in Southern Arizona.
Statewide, Arizona added 2,000 seasonally adjusted jobs in May, while the unemployment rate rose to 4.8%, above the national rate of 4.3%. On a non-seasonally adjusted basis, the state lost 14,300 jobs during the month, reflecting the usual seasonal slowdown that often accompanies the start of summer.
Economists say employers remain cautious as they navigate economic uncertainty, elevated borrowing costs, rising energy costs and a shrinking labor force. While Arizona is still outperforming many states over the longer term, the pace of hiring has moderated considerably…