Snapshot of the Greater Phoenix Job Market

Greater Phoenix performed well in recent years compared to other markets

by Kristen Stephenson

As a research-driven economic development organization, Greater Phoenix Economic Council (GPEC) constantly monitors metrics and data to understand the changing landscape and health of our regional and national economies. In this blog series, Kristen Stephenson, GPEC’s Senior Vice President of Research & Analytics, takes a deep dive into how economic indicators work together to paint a picture of where the region is headed.

How did Greater Phoenix finish 2024?

Greater Phoenix ended the year with total nonfarm employment of just above 2.5 million, increasing by 33,500 compared to December 2023. Growth in the healthcare sector was a significant factor, adding 20,900 jobs year over year. Government, wholesale trade, transportation and utilities, education, and real estate were the other sectors that added more than a thousand jobs in the last year.

In addition to being the fastest growing industry, healthcare is also the second-largest industry in Greater Phoenix. Since the Great Recession, the share of healthcare jobs in the market has grown from 8% of the economy to more than 14%. The region’s largest industry is professional and business services, accounting for one out of every six jobs in the market.

The Greater Phoenix unemployment rate in December was 3.1% (not seasonally adjusted), down from 3.4% a year ago. The region maintained a very healthy unemployment rate throughout 2024, ranging from a low of 2.3% in April to 3.9% in July. Unemployment rates have remained below 4% since August 2021.

How do we compare to other markets?

Greater Phoenix performed well in recent years compared to other markets. In December, most metropolitan areas in the U.S. had unemployment rates that were higher than a year earlier, with 266 of the 389 metropolitan areas showing increased unemployment. In the same time period, 95 areas had lower unemployment rates, including Greater Phoenix, while the rest remained unchanged. When focusing exclusively on large metropolitan areas (51 locations with a population greater than 1 million), Greater Phoenix was one of 11 that had an unemployment rate decrease. Earlier this year from March to May, the region had a run of three consecutive months where the unemployment rate decreased faster year over year than any other large metropolitan area.

Employment growth in the region was right on par with the national average, at 1.4% year over year through December. Earlier this year, Greater Phoenix came in as one of the fastest growing job markets, increasing by 2.6% from July 2023 to July 2024. That momentum has been present over the past decade – of the large metropolitan areas, Greater Phoenix was one of four metros that have had employment growth of greater than 30% over the last ten years, behind only Austin, Orlando and Raleigh, according to the Bureau of Labor Statistics.

What’s next for Greater Phoenix?

Employment is still expected to grow in 2025 and 2026, albeit at a more normalized rate than the last few years. Greater Phoenix rebounded very quickly from the pandemic-induced recession in 2020 and has now settled in at a pace more in line with longer term averages, with most job forecasts for the metro region coming in at just over 2% in 2025.

To monitor economic conditions in real time along with me, visit gpec.org/monitor. We hope you find the Monitor a valuable tool in understanding the ever-changing economic landscape.

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