/ Modified feb 26, 2015 4:01 p.m.

Arizona Employment Rising, But Recession Hangover Remains

State projects 2.2% growth this year, 2.4% next; Tucson area growth will pick up more slowly.

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Job growth report 2014-16
AZ Office of Labor Statistics

Arizona job growth will accelerate this year and next, with nearly 120,000 expected to be added to the work force, state economists predicted Thursday.

The state Office of Labor and Population Statistics released its annual employment forecast, saying job growth this year will be 2.2 percent and next year 2.4 percent.

In the Tucson metro area, job growth this year was forecast at 1.6 percent and for 2016 at 1.8 percent. That's a total of 12,300 jobs over the two years. Last year, the area added 4.900 jobs, a growth rate of 1.4 percent.

Aruna Murthy Aruna Murthy, economist with AZ Office of Employment and Population Statistics.
AZPM Staff

“Tucson usually takes longer to come out and grow jobs than Phoenix and the state," said state economist Aruna Murthy. "But across almost all sectors we’re expecting gain in jobs, across all 11 sectors, though the rate of growth may vary.”

Job growth will be led by leisure and hospitality at 8.2 percent and educational and health services at 7.7 percent, the forecast said. Leisure and hospitality is dominated by the tourism industry and restaurants.

The report, prepared under Murthy's direction, said Arizona has recovered 73.9 percent of the estimated 300,000 jobs it lost during the recession.

"Although the Arizona economy continues to feel some after effects of policies that were enacted post-recession, the major impacts of these policies are behind us, and the federal government does not appear to be a strong drag on the economy," Murthy's report said.

"There are many positive indicators suggesting improvement in the overall economy," the report said, including gross domestic product, overall employment levels, industrial production, wholesale and retail sales and residential real estate.

Jobs in Arizona's construction sector, a leader in the state during robust times, was notable for its modest expected growth of 2.3 percent in the next two years.

Read the state employment forecast by clicking here.

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