Arizona posted one of the strongest job growth rates in the country during the first three months of 2026, according to a new economic report highlighting continued expansion across several key industries.
The Spring 2026 Arizona Economic Update found that the state added approximately 15,500 nonfarm payroll jobs during the first quarter, bringing total statewide employment to more than 3.26 million jobs. The increase placed Arizona third among all 50 states for percentage job growth during the period.
State officials also reported that Arizona ranked 11th nationally for year-over-year private sector job growth between April 2025 and April 2026, reflecting continued gains despite broader economic uncertainty.
Gov. Katie Hobbs pointed to the latest figures as evidence of Arizona’s economic resilience, while acknowledging that many households continue to face financial pressures. She said her administration remains focused on attracting businesses, creating jobs and expanding economic opportunities across the state.
According to the report, Arizona recorded about 118,700 job hires during the quarter, an increase from the previous three-month period. At the same time, job separations declined to roughly 110,000, suggesting a more stable labor market.
The strongest employment gains over the past year came from the private education and health services sector, which added nearly 11,800 jobs. Growth in healthcare and social assistance services continued to be fueled by Arizona’s expanding population and increasing demand for medical care.
Other services, including personal and repair businesses, added approximately 1,900 jobs, while the natural resources and mining sector posted one of the fastest growth rates in percentage terms, supported by Arizona’s copper industry and ongoing investments tied to energy and electrification projects.
Mary Foote, director of the Arizona Office of Economic Opportunity, said the data reflects continued strength in industries that play a major role in supporting Arizona workers and families. The agency uses employment data to help guide workforce development efforts and connect job seekers with opportunities across the state.
Economic analyst Jim Rounds said the labor market appears to be stabilizing rather than weakening, noting that job growth, rising earnings and a modest decline in labor force participation suggest Arizona is entering the summer months with a relatively solid economic foundation.
The report concluded that Arizona’s economy continues to benefit from population growth, business investment and expansion in sectors such as healthcare, advanced manufacturing and professional services, helping sustain momentum through the first part of the year.
