Why Arizona’s drop in job growth is ‘surprising’ experts

Article originally posted on AZ Central on September 3, 2025

Arizona has been a reliable and long-standing national leader in job growth. But so far this year, the state has taken a big step backwards.

Through the first seven months, Arizona has ranked 46th in bringing in new jobs. Despite the steep drop, it doesn’t indicate yet that the state is spiraling toward a recession. But it does surprise economic experts and signal a bit of a slowdown.

There is still a bright side to The Arizona Republic’s annual employment report. Job growth can be seen by Arizona’s larger employers over the last decade, especially in the health care sector. These employers account for nearly one in five jobs statewide.

This week on The Gaggle, a politics podcast by The Arizona Republic and azcentral.com, hosts Ron Hansen and Mary Jo Pitzl are joined by The Republic’s business reporter Russ Wiles. He joins the show to discuss his annual employment report, the most comprehensive study of Arizona’s top employers, and shares what’s driving Arizona’s economy.