PHOENIX – Continued strong growth in the construction industry helped keep the state’s jobless rate from dropping last month.
New figures from the Office of Economic Opportunity pegged the seasonally adjusted June unemployment rate at 4.7 percent. That’s the same as May and just a tenth of a point below a year earlier.
That compares to a national jobless rate of 4.0 percent.
The numbers reflect the loss of 4,800 jobs over the month. But Doug Walls, the agency’s research administrator, said that is not a surprise: He said the normal month-over-month loss at this time of the year is 9,100, particularly with seasonal declines in employment at private colleges as well as fewer people working at hotels, bars and restaurants.
And Walls noted that overall private sector employment is up 71,400 from the same time a year earlier.
The unemployment rate for the Lake Havasu City-Kingman Metropolitan Statistical Area, which comprises Mohave County, rose to 5.7 percent in June, compared with 4.6 percent in May. It’s down from 5.9 percent in the same month a year ago.
Total employment is 80,700 out of a civilian labor force of 85,600 in the county, according to the Office of Economic Opportunity.
A breakdown of nonfarm payroll employment in Lake Havasu City-Kingman MSA shows 44,100 private sector jobs, unchanged from May, and 7,400 government jobs, a decrease of 200.
Goods-producing industries added 100 jobs to 6,400, while service-producing industries lost 300 jobs down to 45,100.
One job out of every five added last year was in the state’s construction sector, which continues to show some signs of life after the bottom dropped out in 2006.
Then, in the middle of the housing boom, there were more than 244,000 people working to build homes, offices, roads and bridges. Within months, as the recession hit and the housing bubble burst, it plummeted to fewer than 110,000.
The latest report puts construction employment at slightly less than 160,000, meaning the industry has recovered just 37 percent of the jobs lost.
That compares with national figures that show more than three-fourths of the construction jobs lost during the recession are back.
The “why’’ behind that is that the pre-recession Arizona economy was not really diversified. Instead it was based on the idea that growth – and people moving here - would continue to drive it.
In fact, before the recession, close to one job out of every 11 was in construction. So when the bottom dropped out of the economy and the housing market, Arizona got hit harder than most places.
Walls said there are some positive signs for continued growth in the industry.
He said the state’s population grew 1.9 percent in the past year, versus 1.1 percent nationally. And Walls said there has been an uptick in home ownership rates.
Walls acknowledged that the state’s jobless rate has remained more or less the same for close to a year.
Daily Miner reporter Hubble Ray Smith contributed to this report.