May 2025

Released June 24, 2025

Released April 18, 2025

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United States Employment Snapshot

• In May, among the 50 states and the District of Columbia unemployment fell in 13, rose in 14, and remained unchanged in 24.

• The highest unemployment rate was 5.9 percent in District of Columbia, and the lowest was 1.8 percent in South Dakota. Nationally, the unemployment rate remained unchanged in May.

• In May, payroll jobs rose in 37 states and fell in 11. The largest payroll job percent increase was 0.4 percent in Montana. The largest payroll job percent decline was 0.4 percent in Connecticut.

Arizona Employment Snapshot

• In May, Arizona lost 3,500 net payroll jobs and the unemployment rate remained unchanged at 4.1 percent. In the prior month, Arizona added 14,100 net payroll jobs.

• Over the past 12 months, Arizona added 25,100 net payroll jobs and the unemployment rate rose by 0.7 percentage points from 3.4 percent.

• Nationally, nonfarm payrolls rose by 139,000 in May, or 0.1 percent. Arizona is tied for 31st in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• In May, Arizona’s private sector lost 400 net private payroll jobs, and over the past 12 months it added 24,400 private payroll jobs. In the prior month, Arizona added 13,800 net private payroll jobs.

• In May, employment in Arizona fell by 622, and over the past 12 months it rose by 21,084.

• Arizona’s labor force participation rate fell to 61.4 percent in May from 61.5 percent and ranks 35th in the nation. In the past 12 months, the labor force participation rate has fallen by 0.1 percentage points.

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Arizona Payroll Employment

• Arizona lost 3,500 net payroll jobs, or -0.1 percent, on a seasonally adjusted basis during May. In the prior month, Arizona added 14,100 jobs. Arizona nonfarm payroll employment has increased in 8 of the past 12 months.

• Nationally, nonfarm payrolls rose by 139,000 in May, or 0.1 percent. Arizona is tied for 31st in the nation for percentage gain in nonfarm payroll employment over the past 12 months.

• Arizona lost 400 private sector jobs, or 0 percent. on a seasonally adjusted basis during May. In the prior month, Arizona added 13,800 jobs. Arizona private sector payroll employment has increased in 8 of the past 12 months.

• Nationally, private sector payroll jobs rose by 140,000 jobs in May, or 0.1 percent. Arizona is tied for 26th in the nation for percentage gain in private sector payroll employment over the past 12 months.

• The best performing sectors on a seasonally adjusted basis during May were Leisure and Hospitality (2,100) and Education and Health Services (2,100).

• The poorest performing sectors during the month were Trade, Transportation, and Utilities (-2,200) and Government (-3,100).

• The best performing sectors during the last 12 months were Education and Health Services (24,700) and Leisure and Hospitality (6,600).

• The poorest performing sectors during the last 12 months were Manufacturing (-4,200) and Trade, Transportation, and Utilities (-6,400).

Arizona Labor Force

The labor force participation rate is the percentage of the civilian noninstitutionalized population age 16 and older who are employed or actively looking for work.

• The labor force participation rate in Arizona fell to 61.4 percent in May from 61.5 percent in the prior month.

• Arizona ranks 35th in the nation.

• The 10-year high for the labor force participation rate in Arizona was 62.2 percent occurring in December 2019, and the 10-year low was 60 percent occurring in November 2015.

• The national labor force participation rate fell by 0.2 percentage points to 62.4 percent in May.