According to figures released by the Arizona Department of Commerce’s Research Administration, formerly part of the Arizona Department of Economic Security, Cochise County’s unemployment rate climbed to 5.4 percent in December, up from 4.5 percent in November.
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The county lost 100 non-farm jobs from November to December. In 2007, the annual non-farm job growth rate was 0.7 percent, reflecting a net gain of only 275 jobs for the year. Slowed job growth since the beginning of last year continues to be worrisome.
The decline is largely the result of a slowdown in construction throughout most of the county, and a slowdown in the housing and real estate market generally. This has impacted the financial activities industry, as well.
The county’s labor force in December was 56,500, down by 300 from November’s figures. The labor force includes those persons aged 16 and over who are employed or are actively seeking work. For the year 2007, the county’s labor force saw a net decline of 75, or 0.1 percent. Sluggish growth in the labor force is likely the result of a slowdown in population growth as a result of the slowdown in the housing market, as well as a larger proportion of retired persons moving to the area.
The county’s private sector lost 75 jobs in December, bringing the number of private sector jobs to 26,000. In 2007, the county’s private sector added 325 jobs, for job growth of 1.3 percent
Within the private sector, the number of goods producing jobs — which include manufacturing and construction — declined by 75 in December. This reflects the loss of 25 construction and 50 manufacturing jobs. In 2007, the county’s goods-producing sub-sector saw a net loss of 50 jobs, for job growth of -1.4 percent. The county’s construction industry saw the loss of 100 jobs, for job growth of -3.7 percent, while manufacturing gained 75 jobs, for job growth of 8.1 percent.
The private service-providing sub-sector stabilized at 22,625 jobs from November to December. Within this sub-sector trade, transportation and utilities added 50 jobs. Professional and business services, and educational and health services each added 25 jobs. Information and financial activities each lost 25 jobs from November to December. Leisure and hospitality lost 50 jobs while other services stabilized at 925 jobs.
For the year 2007, the county’s private service-providing sub-sector gained 375 jobs for job growth of 1.7 percent. Professional and business services gained 200 jobs for annual job growth of 4 percent. Trade, transportation and utilities added 175 jobs for job growth of 2.6 percent. Educational and health services gained 100 jobs for annual job growth of 2.5 percent. The leisure and hospitality industry gained 75 jobs, for job growth of 1.9 percent. Information lost 25 jobs in 2007 for job growth of -5.9 percent. Financial activities and other services each lost 75 jobs last year, bringing the annual job growth rate of each industry to -7.9 percent.
According to Arizona Department of Commerce estimates, adjusted for seasonality by the Cochise College Center for Economic Research, city level unemployment rates for 2007 were: Benson 7.6 percent, Bisbee 4.7 percent, Douglas 6.6 percent, Huachuca City 6.2 percent, Sierra Vista 2.5 percent, Tombstone 2.8 percent, and Willcox 6.6 percent. However, for December, seasonally adjusted rates were higher at: Benson 9.6 percent, Bisbee 6.0 percent, Douglas 8.4 percent, Huachuca City 7.8 percent, Sierra Vista 3.3 percent, Tombstone 3.6 percent, and Willcox 8.3 percent.
It’s important to note that the Arizona Department of Commerce’s unemployment rates for cities in Cochise County are based on a model that pegs city rates to the county rate based on data from Census 2000. The model does not pick up changes at the city level that differ substantially from county-level trends.
We should expect a continued slowing of job growth through 2008. The hardest-hit industries will continue to be construction, financial activities, information, and other services.
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