September unemployment rate climbs

According to the most recent figures released by the Arizona Department of Economic Security, Cochise County's seasonally adjusted unemployment rate increased to 4.3 percent in September, following a record-low rate of 3.8 percent in August. Despite the increase, the county's unemployment rate in September remained a full percentage point below the rate one year ago.

In September, Cochise County saw a net decrease of 625 jobs, along with a decrease of 450 people in the county's labor force. The labor force includes those persons aged 16 years and older who are employed or actively seeking work, and excludes active duty military personnel. In September, the county's labor force consisted of 57,350 actual or potential workers, of whom 54,900 were actually employed. The number of unemployed persons in the county during the month of September totaled 2,450, up from 2,275 in August.

In September, the number of non-farm jobs in the county increased by 50, ending the month at 38,600. This reflects the creation of 850 non-farm jobs in the 12 months ending in September, for annual job growth of 2.3 percent.

The private sector saw an increase of 100 jobs in September, with total private-sector employment in the county moving from 26,050 to 26,150. This reflects the creation of 825 private-sector jobs over the past year, for job growth of 3.3 percent.

The government sector in Cochise County decreased by 50 jobs in September, bringing the total number of government jobs to 12,450. This reflects the creation of 25 government jobs over the past year, for job growth of 0.2 percent.

Within the government sector, the number of federal government jobs stabilized at 4,975. In the 12 months ending in September, the federal government saw a net loss of 50 jobs in Cochise County, for job growth of -1.0 percent.

At the state and local government levels, the number of jobs decreased by 50 in September, bringing the total number of state and local government jobs to 7,475. Over the past year, state and local government jobs in Cochise County have expanded by 75, for job growth of 1 percent.

The county's goods-producing sector, which includes manufacturing, as well as mining and construction, saw a net loss of 50 jobs in September. This reflects the creation of 125 goods-producing jobs over the past 12 months, for job growth of 3.4 percent.

The mining and construction industry grouping in Cochise County lost 75 jobs in September, moving from 2,975 to 2,900. Compared to September of last year, this reflects a net gain of 50 jobs, for job growth of 1.8 percent. A slowdown of the local housing market has reduced the growth of construction jobs in recent months, and this is expected to persist as higher interest rates and inflationary pressures continue to take their toll.

The manufacturing industry in Cochise County gained 25 jobs in September, moving from 900 to 925. Compared to September of last year, this reflects the addition of 75 manufacturing jobs, for job growth of 8.8 percent.

The private, service-providing sector in Cochise County grew by 150 jobs in September, ending the month at 22,325. Compared to September of last year, this reflects the creation of 700 private, service-providing jobs, for job growth of 3.2 percent. The private, service-providing sector includes trade, transportation, and utilities; information; financial activities; professional and business services; educational and health services; leisure and hospitality; and the category of "other services."

Between August and September of this year, professional and business services gained 75 jobs, ending the month of September at 4,900. The industry groupings of trade, transportation, and utilities; educational and health services; and leisure and hospitality each added 25 jobs in September.

Information, financial activities, and other services each stabilized in September. The information industry ended the month at 425, financial activities came in at 1,000, and other services ended the month at 950 jobs.

The major contributor to job growth in the county's private, service-providing sector over the past 12 months was the professional and business services industry grouping, which added 450 jobs for job growth of 10.1 percent. Trade, transportation, and utilities gained 350 jobs over the 12 months ending in September, for job growth of 5.4 percent. Also contributing to job growth in the private, service-providing sector over the past year was the educational and health services industry, which added 100 jobs for a job growth rate of 2.6 percent. Leisure and hospitality gained 25 jobs over the past 12 months for job growth of 0.6 percent.

The "other services" industry grouping declined by 200 jobs in the 12 months ending in September, for job growth of -17.4 percent. The information industry declined by 25 jobs in the September comparisons, showing annual job growth of -5.6 percent.

At the state level, Arizona's seasonally adjusted unemployment rate increased to 3.7 percent in September, up slightly from 3.6 percent a month prior. In September of last year, the statewide unemployment rate was 4.8 percent.

Nationally, the unemployment rate fell to 4.6 percent in September, down from 4.7 percent a month prior. The national unemployment rate in September 2005 was 5.1 percent.

DES also produces unadjusted estimates of employment data for the incorporated cities and towns of Cochise County. The CER then makes seasonal adjustments to these data. It is important to note that the city-level estimates are based on a census share model, which presumes the labor force, employment, and unemployment in the county's seven cities are distributed similarly to what was observed in the most recent census. Using this model, changes in the county's employment situation will produce changes in the city data, but the ratio of city to county data will remain the same as that observed in the most recent census, conducted in 2000.

Based on the census share model, Benson's seasonally adjusted unemployment rate in September moved from 6.9 to 7.7 percent. Bisbee's unemployment rate in September increased from 4.2 to 4.7 percent. Douglas' seasonally adjusted unemployment rate in September climbed from 5.9 to 6.6 percent. The unemployment rate in Huachuca City moved from 5.7 to 6.3 percent in September.

In Sierra Vista, the seasonally adjusted unemployment rate in September increased from 2.2 to 2.5 percent. The unemployment rate in Tombstone climbed from 2.5 to 2.9 percent. In Willcox, the seasonally adjusted unemployment rate for September increased from 5.9 to 6.6 percent.

Employment figures, released monthly, are widely regarded as one of the most important economic indicators. However, employment figures are subject to sizable revisions. For the most up-to-date employment data for the local economy, please visit the CER's website at www.cochise.edu/cer.

If you have any questions on the local economy, please contact the CER at 515-5486 or email the Center at cer@cochise.edu.