Arizona’s unemployment rate highest in nearly five years
By GREG LINDSAY
Cronkite News Service
PHOENIX (Thursday, Sept. 18) _ Arizona’s unemployment rate is the highest it’s been in nearly five years, driven by slumps in construction, trade, utilities and transportation, and a leader in the construction industry says the worst is yet to come.
“The outlook isn’t good,” said Edward Sullivan, chief economist and staff vice president of economic research of the Portland Cement Association, which represents cement companies in the United States and Canada.
The state’s unemployment rate was 5.6 percent in August, up from 5.1 percent in July and from 3.7 percent in August 2007, the Arizona Department of Commerce announced Thursday. The nation’s unemployment rate stood at 6.1 percent in August.
Sullivan projects that Arizona’s unemployment rate will reach 6.7 percent during the first quarter of 2009 as the crisis among financial institutions adds to the state’s economic woes.
State figures show all areas of construction seeing job losses, with 2,100 positions cut in August and 37,200 cut so far this year.
Sullivan said construction could lose 70,000 jobs for the year.
“Unfortunately, it’s going to get worse before it gets better,” he said.
“It doesn’t look good for the construction industry for the next three to four years,” said Matthew Eicher, program manager at the Del E. Webb School of Construction at Arizona State University.
The last time Arizona’s unemployment rate was this high was September 2003, when it stood at 5.6 percent.
Dennis Doby, senior director of research administration at the Arizona Department of Commerce, said he expects unemployment to reach 6 percent before declining.
“Right now we’re near the bottom, but to say we’re at the bottom is difficult to say,” Doby said.
The category of trade, transportation and utilities posted the biggest losses for the month of August, shedding 2,400 jobs, bringing the total for the year to 7,000. Professional and business services lost 1,900 jobs during the month.
Meanwhile, the category of education and health services added 4,600 jobs during August, and private educational services added 3,500 jobs. The leisure and hospitality category added 1,000 jobs.
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Web Links:
_ Portland Cement Association: www.cement.org
_ Arizona Department of Commerce: www.azcommerce.com