According to figures released by the Arizona Department of Commerce, Cochise County lost 300 nonfarm jobs in June. The county’s unemployment rate in June rose to 5.0 percent, up from 4.5 percent the month prior. This represents the second consecutive half-point jump in the county’s monthly unemployment rate and the highest two-month increase on record, with records going back to 2000. Countywide unemployment in June was at its highest level since November 2005.

Compared to June last year, the number of nonfarm jobs in Cochise County was down by 625, for a job growth rate of -1.6 percent. The decline was led by job losses in trade, transportation, and utilities; financial activities; professional and business services; construction; and other services.

The county’s private sector stabilized at 25,225 jobs in June. Since June last year, the county has lost 700 private sector jobs, for job growth of -2.7 percent.

Within the private sector, the number of goods producing jobs – which includes manufacturing and construction – increased by 25 in June. This reflects a gain of 25 construction jobs and a stabilization of manufacturing jobs. Since June 2007, the county’s goods producing sub-sector has seen a net loss of 75 jobs, for job growth of -2.4 percent. The county’s construction industry lost 125 jobs in the 12 months ending in June, for job growth of -5.4 percent; while manufacturing gained 50 jobs, for job growth of 6.3 percent.

The county’s private service providing sub-sector lost 25 jobs in June. Within this sub-sector, educational and health services gained 25 jobs, while professional and business services gained 75 jobs. Financial activities, information, and other services each stabilized at May employment levels. Trade, transportation, and utilities lost 75 jobs, while leisure and hospitality lost 50 jobs.

In the 12 months ending in June, the county’s private service providing sub-sector lost 625 jobs, for job growth of -2.7 percent. Trade, transportation, and utilities lost 300 jobs, for job growth of -4.3 percent. Financial activities and professional and business services each lost 200 jobs, for 12-month job growth of -17.8 and -4.0 percent, respectively. The information industry and other services each lost 50 jobs in the 12 months ending in June, for respective job growth rates of -8.7 and -5.6 percent. Leisure and hospitality gained 100 jobs, for 12-month job growth of 2.5 percent; and educational and health services gained 75 jobs, for job growth of 1.8 percent.

The government sector in Cochise County lost 300 jobs in June. Job losses in the government sector reflect a loss of 25 federal government jobs and 275 state and local government jobs. The latter is due to seasonally expected job changes in the county’s school system. In the 12 months ending in June, the government sector gained 75 jobs for job growth of 0.6 percent. This includes a gain of 125 federal government jobs, for a job growth rate of 2.6 percent; and a loss of 50 state and local government jobs, for job growth of -0.7 percent.

At the national level, the unemployment rate stabilized at 5.5 percent in June, following May’s largest single-month increase in more than 22 years. Arizona’s unemployment rate in June rose from 4.4 to 4.8 percent. The state’s unemployment rate in June was the highest since September 2004.   

According to ADOC estimates, adjusted for seasonality by the Cochise College Center for Economic Research, city level unemployment rates for June were: Benson, 8.9 percent; Bisbee, 5.5 percent; Douglas, 7.7 percent; Huachuca City, 7.3 percent; Sierra Vista, 3.0 percent; Tombstone, 3.4 percent; and Willcox, 7.6 percent.

It’s important to note that the ADOC 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 since 2000 that differ substantially from county-level trends. CER focus group discussions in Benson indicate a lower unemployment rate than suggested by ADOC figures. The structure of Benson’s economy has undergone significant changes in recent years, with the opening of the Wal-Mart Supercenter and a surge in residential and commercial construction. Local business and community leaders report a shortage of labor in Benson, which has led to rising wages in the city.

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.