County unemployment stabilizes in December

By Robert Carreira
Center For Economic Research
Published/Last Modified on Wednesday, February 3, 2010 11:18 AM MST


According to figures released by the Arizona Department of Commerce, Cochise County’s seasonally adjusted unemployment rate stabilized at 7.1 percent in December. Cochise County’s unemployment rate remained the lowest in the state and was considerably below the state and national levels. The statewide unemployment rate in December increased from 8.9 to 9.1 percent. Nationally, the unemployment rate stabilized at 10 percent.


For 2009, Cochise County’s annual unemployment rate came in at 6.9 percent, up from 5.3 percent in 2008. At the state level, Arizona’s annual unemployment rate for 2009 was 8.5 percent, up from 5.5 percent. Nationally, the unemployment rate for 2009 was 9.3 percent, up from 5.8 percent.

According to ADOC estimates, adjusted for seasonality by the Cochise College Center for Economic Research, city level unemployment rates for December were: Benson, 12.4 percent; Bisbee, 7.8 percent; Douglas, 10.8 percent; Huachuca City, 10.2 percent; Sierra Vista, 4.2 percent; Tombstone, 4.7 percent; and Willcox, 10.7 percent. Annual rates for 2009 were: Benson, 12.1 percent; Bisbee, 7.6 percent; Douglas, 10.6 percent; Huachuca City, 10 percent; Sierra Vista, 4.2 percent; Tombstone, 4.6 percent; and Willcox, 10.5 percent.

ADOC unemployment estimates for the 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 from county-level trends. CER focus group discussions throughout the county indicate a likely overestimation of unemployment in Benson and Douglas due to the opening of the Wal-Mart Supercenter and ACT Call Center, respectively, in those cities. Sierra Vista’s unemployment rate is likely underestimated as indicated by comparison to recent American Community Survey data published by the U.S. Census Bureau.

Despite stabilization of the unemployment rate, Cochise County lost a seasonally expected 175 nonfarm jobs in December. Compared to December 2008, the number of nonfarm jobs countywide was down by 400, for a 12-month job growth rate of -1.1 percent. The pace of annual job losses has slowed considerably in recent months.

The county’s private sector lost 100 jobs in December. Since December 2008, the county has lost 300 private sector jobs, for job growth of -1.2 percent.

Within the private sector, the number of goods producing jobs, which includes manufacturing and construction, declined by 100 in December. Of these, 25 were in construction and 75 were manufacturing jobs. Since December 2008, the county’s goods producing subsector has seen a net loss of 50 jobs for a 12-month job growth rate of -2.1 percent. The county’s construction industry gained 100 jobs in the 12 months ending in December, for job growth of 5.8 percent. These were offset by the loss of 150 manufacturing jobs over the same period for job growth of -23.1 percent.

The number of jobs in the county’s private service providing subsector stabilized at November levels in December. Within this subsector, trade, transportation, and utilities gained 50 jobs, and educational and health services gained 75 jobs. These job gains were offset by the loss of 75 professional and business service jobs and 50 leisure and hospitality jobs. The number of jobs in information, financial activities, and other services stabilized at November levels.

In the 12 months ending in December, Cochise County’s private service providing subsector lost 250 jobs, for 12-month job growth of -1.1 percent. Trade, transportation, and utilities lost 325 jobs, for job growth of -5 percent. Other services lost 175 jobs, for job growth of -20 percent. Information lost 75 jobs, for job growth of -15.8 percent. Financial activities lost 25 jobs, for job growth of -3.7 percent. These job losses were partially offset by a gain of 25 educational and health services jobs, for job growth of 0.6 percent, and 325 leisure and hospitality jobs for job growth of 8.2 percent. Professional and business service jobs in December were at the same level as in December 2008.

December saw a loss of 75 government jobs in Cochise County, which included a loss of 50 state and local government jobs and 25 federal government jobs. In the 12 months ending in December, government jobs declined by 100, for a 12-month job growth rate of -0.8 percent. This reflects 175 new federal government jobs, for a 12-month job growth rate of 3.4 percent, offset by the loss of 275 state and local government jobs, for job growth of -3.6 percent.

Job losses in Cochise County are likely to continue into the first quarter of 2010. Based on recent trends, the county should begin to see overall positive job growth in the second quarter.

Robert Carreira, Ph.D. is director of the Center for Economic Research at Cochise College. If you have any questions on the economy, please contact the CER at (520) 515-5486 or by email at cer@cochise.edu. Check out the CER’s website at www.cochise.edu/cer.

COCHISE  COUNTY NON-FARM EMPLOYMENT

December 2009

November 2009

1-Month Change

December 2008

12-Month Change

12-Month Job Growth Rate

Total  Non-farm Jobs    

37,200

37,375

-175

37,600

-400

-1.1%

Total  Private Sector Jobs    

24,575

24,675

-100

24,875

-300

-1.2%

Goods  Producing Jobs  

2,325

2,425

-100

2,375

-50

-2.1%

     Construction*

1,825

1,850

-25

1,725

100

5.8%

     Manufacturing

500

575

-75

650

-150

-23.1%

Service  Providing Jobs

34,875

34,950

-75

35,225

-350

-1.0%

   Private Service Providing Jobs

22,250

22,250

0

22,500

-250

-1.1%

     Trade, Transportation, and Utilities

6,200

6,150

50

6,525

-325

-5.0%

     Information

400

400

0

475

-75

-15.8%

     Financial Activities

650

650

0

675

-25

-3.7%

     Professional and Business Services

6,025

6,100

-75

6,025

0

0.0%

    Educational  and Health Services

4,000

3,925

75

3,975

25

0.6%

     Leisure and Hospitality

4,275

4,325

-50

3,950

325

8.2%

     Other Services  

700

700

0

875

-175

-20.0%

   Government Jobs       

12,625

12,700

-75

12,725

-100

-0.8%

     Federal Government

5,250

5,275

-25

5,075

175

3.4%

     State and Local Government

7,375

7,425

-50

7,650

-275

-3.6%

*  Includes mining

Note. Discrepancies  due to rounding

Source:  Arizona Department of Commerce and Cochise College Center for Economic  Research

UNEMPLOYMENT  RATES

December 2009

November 2009

December 2008

United  States

10.0%

10.0%

7.2%

Arizona

9.1%

8.9%

6.6%

Cochise  County

7.1%

7.1%

6.2%

Benson

12.4%

12.6%

10.9%

Bisbee

7.8%

7.9%

6.8%

Douglas

10.8%

10.9%

9.5%

Huachuca  City

10.2%

10.4%

9.0%

Sierra  Vista

4.2%

4.3%

3.7%

Tombstone

4.7%

4.8%

4.2%

Willcox

10.7%

10.8%

9.4%

Note. Monthly figures are seasonally  adjusted. National, state, and county rates reported by the Arizona  Department of Commerce, in cooperation with the U.S. Department of Labor.  Sub-county monthly rates seasonally adjusted by the Cochise College Center  for Economic Research based on Arizona Department of Commerce unadjusted  figures.

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