Arizona Unemployment Hits 4.8% in June as Labor Force Participation Falls to 60.7%
Updated
Updated · commonsenseinstituteus.org · Aug 21
Arizona Unemployment Hits 4.8% in June as Labor Force Participation Falls to 60.7%
1 articles · Updated · commonsenseinstituteus.org · Aug 21
Summary
Arizona’s unemployment rate rose to 4.8% in June, a new post-pandemic high and the 12th highest among states and Washington, D.C.
June payrolls still increased by 2,000 jobs, but the state’s labor force participation rate fell for a fourth straight month to 60.7%—1.4 percentage points below a year earlier—signaling a cooling labor market.
Arizona added 21,200 jobs year over year, or 0.65%, beating the national 0.32% gain, though its growth since early 2025 has lagged the U.S. and has been dragged down by a shrinking government sector.
Manufacturing added 600 jobs in June and mining gained 1,300 from a year earlier, while average hourly wages slipped $0.09 on the month but remained up $1.13, or 3.3%, from June 2025.
The report marks a sharp reversal from Arizona’s strong post-2020 labor market, even as U.S. unemployment held at 4.3% and World Cup-related activity helped lift national hiring.