The article, Brisk job growth drops Arizona unemployment rate, from www.azcentral.com, reports that Arizona gained a net 33,800 jobs last month, well ahead of the nearly 24,000 it has averaged in October since the Great Recession ended in 2009. The hiring boost dropped Arizona's unemployment rate to 6.1 percent from 6.3 percent . Over the past year, Arizona has added 60,300 jobs, a 2.3 percent growth rate. If the state can maintain that pace in the final months of 2015, it could snap a string of relatively sleepy 2 percent growth in recent years. Both numbers are better than the 1.9 percent national job-growth figure but rank far below Arizona's historic growth rate. "There are no surprises in this report. Long ago most people who track the economy gave up the idea that some big boom was on the way," said Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W.P. Carey School of Business at Arizona State University. McPheters said ASU's forecast called for 2.4 percent job growth this year and the state remains on track for its best year since the recession. While McPheters sees more steady improvement, Forbes magazine recently suggested Arizona would lead the nation in job growth through 2019, calling the state one of the “brighter spots in a slumbering U.S. economy." Construction, once a pillar of the state's economy, has gained 4,700 jobs over the past 12 months, which ranks seventh among the 11 major industrial sectors. Click HERE for a link to the article.
The article, Study: Arizona a top destination for businesses relocating from California, from the Phoenix Business Journal, reports that Arizona is the third-best market for California disinvestment, according to a seven-year Spectrum Location Solutions study of companies leaving the state. Texas, Nevada and Arizona are in the top three slots, following by Colorado, Washington, Oregon and North Carolina. Report author Joseph Vranich, a site selection consultant, confirmed that more than $68 billion in capital has been diverted to other states as a result of the more than 1,500 disinvestment actions – the act of a company pulling up stakes and relocating. “Companies moving to other states save 25 percent to 35 percent of operating costs compared to California costs,” Vranich said. “As California’s business climate worsens, chances are that more companies will seek places that are friendlier to business interests,” Vranich said.
The article, Why Forbes projects Arizona to lead U.S. in job growth, from www.azcentral.com, reports that Forbes Magazine has named Arizona the best state for future job growth. The magazine in October used forecasts from Moody’s Analytics to call Arizona one of the “brighter spots in a slumbering U.S. economy thanks in part to renewed migration.” The Moody’s report projected a job growth rate of 3.1 percent through 2019. As the U.S. economy slowly recovers from the Great Recession, experts said Arizona has become a landing spot for expanding businesses because of its skilled workforce, available real estate and diversified economy. Large companies headquartered in the Midwest and Southeast are expanding in the Valley and bringing plenty of jobs with them. Chicago-based Northern Trust Bank expects to add 1,000 jobs at its new Tempe operating center by 2018. Home Depot Inc., headquartered in Atlanta, will add about 800 jobs to its Tempe call center in an existing warehouse in 2016. Dallas-based Santander Consumer USA Holdings Inc., a consumer finance firm, plans to hire up to 970 employees at a new facility in Mesa, according to the Greater Phoenix Economic Council. Arizona’s job outlook has been in large part shaped by a steady influx of baby boomers retiring to the desert, said Lee McPheters, a professor of economics at Arizona State University’s W.P. Carey School of Business. “There’s a path toward economic recovery (in Arizona),” McPheters said. “We’re a lower cost state than our neighbors, one that continues to attract retirees, which creates jobs in food service and health care.” McPheters said the Valley’s combination of available infrastructure and a talent pool of young college graduates also work in the state’s favor when companies look to leave an economic footprint in Arizona. “There aren’t a whole lot of obstacles in Arizona,” McPheters said. “The opportunities outweigh the obstacles significantly.”