Arizona’s job market cooled throughout 2025, according to the latest report from the Arizona Office of Economic Opportunity.
The year closed with a net loss of about 19,400 jobs.
The latest report from the Arizona Office of Economic Opportunity shows the state's unemployment rate jumped from 4.2% to 4.5% from January 2025 to January 2026.
And Arizona’s seasonally adjusted unemployment rate jumped to 4.5% in January, a tenth of a percent increase compared to December 2025.
"Job losses were largest within government, trade, transportation and utilities, leisure and hospitality, and construction. While health care and social assistance remained one of the few sectors continuing to add jobs," said Doug Walls with the Office of Economic Opportunity.
Walls says January’s overall losses were slightly lower than average, but that more data will be needed to see if that is part of a larger trend.
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