According to the most recent figures from the Arizona Department of Economic Security, Cochise County lost 400 non-farm jobs in January, moving from 37,975 to 37,575. From January 2006 to January 2007, the county saw the addition of 550 new jobs, for a 12-month job growth rate of 1.5 percent.

In recent months, the 12-month job growth rate has declined steadily. In the first quarter of 2006, 12-month job growth rates averaged 3.4 percent. This declined to an average of 3.1 percent in the second quarter, 2.7 percent in the third quarter, and 2.2 percent in the fourth quarter. The steady decline in job growth is largely the result of a slowdown in construction throughout most of the county. Another contributor has been higher interest rates, which discourage borrowing and raise the cost of previously incurred variable-rate debt, resulting in lower levels of spending in the economy.

The county's private sector lost 275 jobs in January, with total private-sector employment moving from 25,725 to 25,450. This reflects the creation of 575 private-sector jobs over the past year, for job growth of 2.3 percent

The county's goods-producing sector, which includes manufacturing, as well as mining and construction, saw a net loss of 50 jobs in January, moving from 3,700 to 3,650. Over the past year, the county has gained 175 goods-producing jobs, leading to a 12-month job growth rate of 5 percent. Most of these new jobs have been in the manufacturing industry.

The mining and construction industry grouping in Cochise County lost 50 jobs in January. Compared to January 2006, this reflects a net gain of 75 jobs, for job growth of 2.8 percent. A slowdown of the local housing market has reduced the growth of construction jobs over the past year, and this is expected to persist as higher interest rates and market corrections from the previous housing boom continue to take their toll.

The manufacturing industry in Cochise County stabilized at 900 jobs in January. Compared to January a year prior, this reflects the addition of 100 jobs, for 12-month job growth of 12.5 percent.

The private, service-providing sector in Cochise County lost 225 jobs in January, ending the month at 21,800. Compared to January 2006, this reflects the creation of 400 private, service-providing jobs, for job growth of 1.9 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 December and January, trade, transportation, and utilities lost 200 jobs, ending the month at 6,675. Over the past 12 months, 100 new trade, transportation, and utilities jobs were added, for a job growth rate of 1.5 percent.

The information industry stabilized at 425 jobs in January. Compared to January 2006, the information industry lost 25 jobs leading to a 12-month job growth rate of -5.6 percent.

Financial activities lost 50 jobs in January, ending the month at 950. In the January comparisons, 50 jobs were lost between January 2006 and January 2007, for a 12-month job growth rate of -5.0 percent. The slowdown in recent months is related to the downturn in the real estate market, which lowers the demand for financial activity support to real estate transactions.

Professional and business services gained 25 jobs in January, ending the month at 4,825. In the 12 months ending in January, professional and business services added 200 new jobs, for job growth of 4.3 percent. Much of the strong growth in this industry grouping is related to local defense contracting services that provide support to activities at Fort Huachuca.

The educational and health services grouping lost 25 jobs in January, ending the month at 4,075 jobs. Compared to January a year prior, educational and health services added 125 jobs for a 12-month job growth rate of 3.2 percent.

The leisure and hospitality industry grouping gained 25 jobs in January, ending the month at 3,875 jobs. This reflects the addition of 125 leisure and hospitality jobs over the previous 12 months, for a job growth rate of 3.3 percent.

Other services stabilized at 975 jobs in January. Between January 2006 and January 2007, other services lost 75 jobs for a 12-month job growth rate of -7.1 percent.

Cochise County's government sector lost 125 jobs in January, moving from 12,250 to 12,125. This reflects the loss of 25 government jobs over the 12 months ending in January, for a job growth rate of -0.2 percent.

Within the government sector, the federal government lost 50 jobs in January, ending the month at 4,700. This reflects a net loss of 225 jobs in the 12 months ending in January, for a job growth rate of -4.6 percent.

In January, state and local government jobs in Cochise County declined by 75, ending the month at 7,425. This reflects a gain of 200 jobs compared to January 2006, for a 12-month job growth rate of 2.8 percent.

We should expect a continued slowing of job growth throughout the first half of 2007. The hardest hit industries will continue to be construction, financial activities, information, and other services. Potential interest rate declines in the second half of 2007 may provide relief and give a boost to the county's struggling real estate market.

If you have any questions on the economy, please contact the CER at (520) 515-5486 or email the center at cer@cochise.edu. Be sure to check out the CER's website at www.cochise.edu/cer.