Arizona unemployment rises slightly but outperforms national rate
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Unemployment in Arizona ticked up late last year, but the state fared better than the nation, per newly released data from the U.S. Bureau of Labor Statistics (BLS).
By the numbers: From September to November 2025, Arizona's seasonally adjusted unemployment rate increased by one-tenth of a percentage point to 4.3%, the Arizona Commerce Authority's Office of Economic Opportunity announced Wednesday.
- Arizona lost about 4,800 non-farm jobs from October to November.
- National unemployment during that period went from 4.4% to 4.6%.
Yes, but: The year-over-year numbers were more positive, with Arizona's total non-farm employment growing by more than 21,000 from November 2024 to November 2025.
- The state's unemployment rate rose from 3.9% in November 2024, which OEO labor market information director Doug Walls told Axios was driven by growth in the labor force.
- Walls noted the November job losses followed four months of positive gains.
What he's saying: Walls described the report as a "mixed bag."
- "People can come away feeling cautiously optimistic. I think there are still a number of bright spots," he told Axios.
- Employment growth is slowing nationally and Arizona isn't immune, Walls said.
- But the state is experiencing a flurry of manufacturing activity and has many projects in the works, which Walls said could help insulate the state.
Zoom in: The biggest year-over-year gains Arizona saw were in the health care and social assistance sector, which gained about 14,500 jobs.
Context: Unemployment and labor force data account for a two-month period from September to November because information wasn't collected during last year's federal shutdown, while employment numbers cover a one-month window from October to November, Walls said.
- December numbers will be available near the end of this month.
Editor's note: This story has been corrected by removing a reference to the Arizona Commerce Authority, which is separate from the Office of Economic Opportunity.