PHOENIX — Arizona’s unemployment rate has hit a new record low, now at just 3.4%. The report released Thursday by the Arizona Office of Economic Opportunity is the latest sign of a strong labor market.
But many voters remain unconvinced the economy is on the right track.
Surveys show concerns about housing, inflation
A 12News viewer poll shows the economy remains among the top three concerns of Arizona residents, and a recent survey by the Center for the Future of Arizona shows more than 80 percent of voters want state and local government to do more to make housing affordable. In May, KJZZ reported a survey of Arizona swing voters shows, that despite a booming economy, 60 percent of them feel the state is heading in the wrong direction.
Nationally, a March New York Times survey showed half of Americans consider the economy to be in “poor shape” and two-thirds said “inflation is heading in the wrong direction.”
Arizona and the country are prospering in many areas
Perception is not always reality.
Wall Street is setting records and the CEO of the nation’s largest lender recently described the U.S. economy as “unbelievable”. U.S. Jobs reports are strong and The Wall Street Journal recently reported wage increases keeping pace with inflation.
America is also outperforming its peers. According to the progressive nonprofit Center for American Progress, compared to the quarter before the pandemic began, the U.S. showed the strongest economic recovery of all G7 countries for gross domestic product - a bounce back of 8.7 percent. And it’s not close. Canada comes in second at 4.5 percent.
UofA study shows Arizona economy 'in solid shape'
Arizona is showing signs of prosperity.
A new report from the U of A concludes the state’s economic outlook is “in solid shape” with “steady job gains.” Personal income rose 6.5 percent in 2023 over the previous year. Core inflation, once at the peak of 12 percent in 2022, is now at 3 percent in Phoenix.
House construction permits are up, which is an encouraging sign for inventory. But home prices continued rising through the first quarter of this year and the housing market “remains stressed,” according to the study. The Phoenix median price for a home hit nearly $445,000 in March.
“The baseline outlook calls for the U.S. economy to avoid recession in the near term, which translates into continued solid, but slowing gains in Arizona, Phoenix, and Tucson,” the study says.
New job numbers in Arizona show the state added 63,900 jobs over the past year. Month-over-month gains include 3,700 new jobs in healthcare and social assistance, 1,600 in manufacturing, and 1,200 in financial activities.
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