Phoenix unemployment rates are lower than the national average. A decade after the subprime mortgage crisis and ensuing recession, unemployment is at 3.9 percent as of December 2017.
According to the U.S. Bureau of Labor Statistics, the national unemployment rate was 4.1 percent as of the same time, a 17-year low.
“I got a job that pays well above minimum wage without any experience,” said Jackie Anderson, a sophomore at the ASU Downtown Phoenix Campus.
“In the past, I heard a lot of college students complain that they have no money, or if they have a job it doesn’t pay very well. And I know a lot of people who are making a teacher’s salary working part time as an undergrad,” she said.
The job market in Phoenix is growing, indicating the economic climate is experiencing vast improvement. Phoenix had the highest hourly wage hike in 2017 over 2016 of any of the top 25 U.S. metro areas—7.6 percent.
Christine Mackay, director of the Community and Economic Development Department of Phoenix, said the growth is caused by the changing nature of Phoenix’s job market.
“A significant amount of it is the number of jobs in this market- advanced manufacturing and other strong base-industry jobs,” Mackay said. “It has a lot to do with the position of the state. Phoenix is now a go-to for high tech, high wage jobs.”
Mackay also stated that city leadership is responsible for the changing economic climate.
“You have to identify your vision. If you want your city to be a sustainable, quality city, you have to get the leadership together. And the mayor and city council really stepped up,” she said.
There are varying opinions on what is ultimately driving unemployment to such a low point in Phoenix. Councilwoman of the 3rd District Debra Stark said she sees growth in different areas entirely.
“We’re a family service-oriented city. There’s high employment rates in the resort and service industry,” Stark said. “There’s a lot of infill projects in the city. A lot of cool new venues as well. That takes someone to build it and someone to staff it,” she said.
According to the Bureau of Labor Statistics, 62 percent of the jobs in Phoenix are now in advanced industries. The hospitality and service industry is continuing to expand in Phoenix, adding over 25,000 jobs last year.
“We’re very pro-business here. That’s an attitude we’re proud of. That’s the way you attract companies,” Stark said.
Owner of the downtown Phoenix Bud’s Glass Joint Greg Centrone, had his own theory on Phoenix’s economic development.
“As the money comes in here, people are working. They spend the money at places like restaurants around here. As those businesses get more money they grow, and in turn they need to hire more staff,” Centrone said. “And more people are employed. As the developments get completed, more people move down here who can then also spend money since the economy is doing well.”
Centrone believes by helping each other, small businesses and institutions have more potential to grow. “If other cities looked at that, looked at the community, they’d be able to better support themselves,” he added.
Contact the reporter at Dylan.Simard@asu.edu.
