October 21, 2026
Summary
Arizona lost 300 nonfarm jobs month-over-month (MOM) on a seasonally adjusted basis in September (-0.01%), ranking 27th among all states and Washington D.C. For context, the U.S. gained 0.02% total nonfarm jobs MOM (+29,000). Although these are preliminary numbers, as it stands, this is the second consecutive month of job losses. 25 states reported job loses this month. Year-over-year (YOY), however, Arizona gained 18,800 jobs (+0.58%), ranking 22nd among all states and Washington D.C. and surpassing national job growth (+0.31%). Arizona’s manufacturing sector lost 400 jobs (-0.21%) leaving the sector with 300 less jobs than December 2025, even after reporting job gains the last two months in a row. Arizona’s unemployment rate remains at 4.9% for its fourth consecutive month.
Key Findings
- Arizona’s job growth rate remains positive over the last year. Arizona’s +0.58% nonfarm growth rate ranks 22nd among all states over the last 12 months.
- Arizona lost 300 nonfarm jobs in September. Professional and Business Services (-0.34%) and Education and Health Services (-0.23%) account for most of the net job losses.
- Although year-to-date job growth was positive through September, employment growth has stagnated since April and the state has lost a total of 5,800 jobs (-0.18%) since July.
- Job gains have been concentrated in the Phoenix Metro; Flagstaff and Yuma have seen significant job losses over the last year.
Download the report above for a PDF version of the full labor market.
