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PHOENIX — In November, Arizona reached its highest unemployment rate since the COVID pandemic’s end. This figure now stands at 4.3%, still under the national average of 4.6%. Such timing is significant as Arizona gears up for a statewide election, where current Governor Katie Hobbs seeks reelection for another four years. Her upcoming State of the State speech is poised to highlight recent economic triumphs including employment expansion by tech giants like TSMC and LG Energy Solutions. Read more about these developments here and here.
Arizona unemployment
Area / November 2025 / September 2025* / November 2024
(Rates not seasonally adjusted unless noted)
Arizona (seas adj) / 4.3% / 4.2% / 3.9%
U.S. (seas adj) / 4.6% / 4.4% / 4.2%
Apache / 8.2% / 8.6% / 7.2%
• Source: Arizona Office of Economic Opportunity
Meanwhile, the Republicans vying for a chance against Hobbs are focusing on the state’s economy as a campaign issue. State Chief Economist Doug Walls described the recent report as a “mixed bag” with both concerns and opportunities. Arizona continues to outpace national averages despite challenges highlighted by a 49% drop in building permits, particularly in residential and multi-family apartments. Such declines are often linked to rising interest rates influencing large construction projects. For more in-depth economic analysis, consult the source here.
The construction sector’s lag is noteworthy. As Walls mentioned, interest rates have a crucial role, affecting both housing inventories and the time it takes to sell homes. Despite declining home prices, the median listing price in Phoenix dipped below $470,000 from $525,000 in 2022, with buyers hesitating amid fluctuating rates. New legislation aims to address housing affordability, such as the recent “middle housing” law signed by Hobbs. Learn more about this initiative here.
In the realm of job creation, numbers appeared stagnant. The state saw a reduction in the job openings rate to 4.8%, marking a decrease from previous years. This trend suggests employers’ uncertainty about economic conditions as they refrain from new hires. These figures mirror the broader context of softer growth in retail and service industries post-COVID. Additionally, Wall has indicated a strong correlation between higher unemployment rates and evolving market dynamics.
Comparative performance in job growth also plays into political narratives. Congressman Andy Biggs cited Arizona’s drop to 47th nationally in job growth during 2025 as evidence of statewide economic challenges. However, year-over-year data paints a slightly brighter picture, with recent figures placing Arizona 22nd. Such discrepancies illustrate the complexity of interpreting economic statistics.
As Hobbs prepares her reelection narrative, she may underscore past economic successes. The state ranked first in job growth in 2019 and eighth in 2022. Although still below its historical highs, Arizona maintains a competitive edge. Hobbs’s strategy likely involves emphasizing consistent private sector job gains, portraying her leadership in a positive light. During these economic shifts, how the electorate perceives such changes could sway election outcomes.
Arizona’s political scene remains dynamic as stakeholders explore legislative measures to boost the housing market and construction sectors. While economic forces primarily drive these sectors, political backing and new policies could help bolster recovery and development. Stay updated with Arizona’s political and economic landscape via Howard Fischer’s insightful reporting on X, formerly known as Twitter.
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