December jobless rate drops


Published/Last Modified on Saturday, January 22, 2005 11:29 AM MST


Howard Fischer/ Capitol Media Services


PHOENIX -- Arizona's jobless rate dropped sharply in December -- but not because more people are working.

In fact, just the reverse is true: The number of Arizonans actually employed dropped by about 5,000 between November and December. But the number of people looking for work slid more -- by close to 13,800.

The result was a statewide seasonally adjusted unemployment rate of 4.2 percent. That's down three-tenths of a point from the prior month, and eight-tenths from a year earlier.

In the Phoenix metro area, the December jobless rate slid to 3.3 percent despite the loss of 6,700 people in the workforce.

Pima County bucked the statewide trend, actually adding 500 jobs. That resulted in a 3.1 percent unemployment figure, aided in part by the fact that 1,400 fewer people were out searching for a job.

Don Wehbey, senior economist for the state Department of Economic Security, said people have dropped out of the labor force.

Wehbey said that in order to be counted as unemployed, an individual actually has to be looking for work. So those who have simply given up cease to be part of the statistics.

He cited figures showing that the average duration of unemployment, even with the improving economy, is about five months.

Wehbey said others may have decided to go back to school or even decided to leave the state.

Whether the new figures are a trend or an aberration remains to be seen. Wehbey said that answer will come when DES does its next monthly household survey.

There were some bright spots in the economy.

The leisure and hospitality industry picked up another 1,400 jobs last month, bringing total employment in that sector up by 7,700 since December 2003. Wehbey said the welcome snow in northern and eastern Arizona portends a continued strong tourism season as people flock to the slopes; prior years have been disappointing.

Wehbey also said the state's manufacturers managed to add 300 jobs in December, the third consecutive monthly increase. But overall employment in that sector still remains 1,000 below a year ago.

Overall, he said, the trends look good. He said the rate of job growth was better in the second half of 2004 than the first half, with 65,00 new jobs since September. And the most recent figures from the U.S. Bureau of Labor Statistics show Arizona has the fifth fastest increase in the percentage of people employed in the nation.

But Wehbey said the state's long-term outlook remains dependent both on the overall national economy continuing to improve, as well as the international market for Arizona goods and services.

Seasonally adjusted unemployment rate:

Area / December 04 / November 04 / December 03

U.S. / 5.4% / 5.4% / 5.7%

Arizona / 4.2% / 4.5% / 5.0%

Phoenix metro / 3.3% / 3.7% / 4.3%

Tucson metro / 3.1% / 3.4% / 3.7%

Apache County / 11.0% / 12.1% / 13.3%

Cochise County / 3.7% / 4.0% / 4.5%

Coconino County / 5.5% / 5.6% / 6.4%

Gila County / 5.8% / 6.2% / 7.2%

Graham County / 5.8% / 6.2% / 6.0%

Greenlee County / 3.8% / 4.0% / 6.8%

La Paz County / 6.7% / 7.1% / 6.0%

Maricopa County / 3.2% / 3.6% / 4.2%

Mohave County / 3.1% / 3.3% / 4.6

Navajo County / 9.4% / 10.2% / 10.6%

Pima County / 3.1% / 3.4% / 3.7%

Pinal County / 4.3% / 4.5% / 5.7%

Santa Cruz County / 11.1% / 12.2% / 12.2%

Yavapai County / 2.3% / 2.6% / 3.0%

Yuma County / 21.8% / 23.4% / 23.3%

-- Source: Department of Economic Security

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