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NEW REPORT: Arizona Ranks 3rd in Nation for Job Growth in First Quarter of 2026

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Spring 2026 Economic Update shows Arizona's labor market added about 15,500 nonfarm payroll jobs, State is 11th in the nation for year-over-year private sector job growth

Phoenix, AZ – Arizona's economy continued to demonstrate resilience in the first quarter of 2026, with total nonfarm employment increasing by about 15,500 jobs and the state ranking third nationally in percentage job growth, according to the Spring 2026 Arizona Economic Update. The report tracks labor market conditions and key economic indicators across the state, putting the data into context. Additionally, a new Office of Economic Opportunity analysis placed Arizona as 11th in the nation for year-over-year private sector job growth from April 2025 to April 2026.

"Despite price-hiking and job-killing policies from Washington, DC, Arizona's economy continues to grow," said Governor Katie Hobbs. "Now third in the nation for job growth, Arizona is showing that our dynamic economy is resilient and gaining momentum. But I know that too many Arizonans still feel left out of our economic growth and are struggling with the price-hiking and job-killing policies out of Washington. I'm going to continue doing everything in my power to ensure we continue growing and attracting businesses, creating jobs and lowering costs so every family has the opportunity they need to thrive."

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Q1 2026 Arizona: By the Numbers
  • 3,268,200 total nonfarm payroll jobs statewide in Q1 2026
  • +15,500 jobs added quarter over quarter, a 0.5% increase
  • 3rd in the nation for percentage job growth among all 50 states
  • 118,700 job hires recorded during the quarter, up about 2,700 from the prior quarter
  • 110,000 job separations, down about 6,300 from the prior quarter

Top Growing Sectors (Year Over Year)
  • Private Education and Health Services: +11,800 jobs / +2.2%
  • Other Services: +1,900 jobs / +1.8%
  • Natural Resources and Mining: +1,100 jobs / +7.1%

"The Arizona Office of Economic Opportunity tracks employment data every month to give businesses, workers, and policymakers the most accurate and timely picture of our state's economic health. What this report shows is that Arizona's labor market remains resilient and continues to grow in the sectors that matter most to Arizona families," said Mary Foote, Director, Arizona Office of Economic Opportunity. "We will keep using this data to build workforce strategies that connect Arizonans with real economic opportunities in today's labor market."

"The momentum Arizona built in the first quarter carried into April, and the data tells a consistent story. Year-over-year job growth continued across several key sectors, average weekly earnings moved higher, and the labor force contracted slightly — a combination that points to a labor market finding its equilibrium rather than losing ground. That gives Arizona a reasonable foundation for cautious optimism as the state moves into the summer months," said Jim Rounds, CEO, Rounds Consulting Group, Inc.

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Private Education and Health Services led all sectors in year-over-year job growth, driven by Arizona's ongoing population expansion and rising demand for healthcare and social assistance services. Natural Resources and Mining ranked among the fastest-growing sectors in percentage terms, supported by Arizona's copper industry and sustained demand tied to electrification and energy infrastructure. Other Services posted gains fueled by continued consumer demand for personal and repair services.

Arizona's labor market continues to benefit from strong population growth, sustained business investment, and ongoing expansion in healthcare, advanced manufacturing, and professional services.

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