Tucson’s job growth lags behind state and national averages

While Arizona as a whole has experienced strong job growth in recent years, Tucson’s job market has been growing at a slower pace, falling behind both state and national averages.

In the past year, Tucson’s job growth was just 1.1%, significantly lower than the state’s average. This slower growth is making it more difficult for residents to secure stable employment.

George Hammond, director of the Economic and Business Research Center at the University of Arizona, says part of the slowdown is due to Tucson’s heavy reliance on government jobs. While government employment offers stability, Hammond says, it doesn’t grow as quickly as other sectors, leaving the city’s economy less dynamic.

“Tucson’s economy is more reliant on government jobs, which tend to be less volatile but also grow more slowly,” Hammond said.

One area seeing growth is housing construction. The number of building permits has increased, leading to more jobs in construction and retail. However, some residents are still struggling with the slow pace of recovery, especially in the wake of the COVID-19 pandemic.

Tucson resident Sherrette George has noticed firsthand the challenges in the local job market.

“Since COVID, a lot of these small businesses have closed, and big businesses like Sam Levitz and Kmart have gone bankrupt because it’s just too expensive,” George said.

She also expressed concerns about rising poverty and homelessness as fewer job opportunities lead to financial instability.

“If we’re not getting more jobs, more people are going to fall into poverty and homelessness,” she said.

Hammond predicts Tucson’s job growth will continue to slow, with a projected growth rate of 0.7% to 0.8% over the next few years. While national economic conditions may worsen, Tucson’s decline is expected to be more moderate. Hammond advises job seekers to remain persistent, as the local economy is expected to recover gradually.