Arizona jobless rate drops to 9.5%

A strong tourism season this spring has boosted hiring more than usual at restaurants, bars and hotels, and it helped lower the state's unemployment rate for the first time in four months, the Arizona Department of Commerce said Thursday.

Arizona added 9,900 new jobs from February to March. And 6,700 of those were in the leisure and hospitality industry, mostly at restaurants and bars.

The unemployment rate dipped to 9.5 percent from 9.6 percent, where it has been stuck since November.

The numbers have not been seasonally adjusted and are subject to revisions.

The hospitality numbers confirm what those in the industry and analysts have already discovered, that 2011 has brought the state a more robust winter-visitor and tourism season than it has experienced in several years.

"Hiring has increased, which isn't uncommon at this time of year because businesses tend to ramp up more for spring training, and also due to the great weather we experience this time of year," said Steve Chucri, president of the Arizona Restaurant Association. "But we have been busier than in more recent years. It's been a nice boost to restaurants."

Arizona restaurant sales last year grew by an unexpected $880 million, to reach $9.25 billion, he said. In the boom years of the mid-2000s, the growth was about $600 million to $700 million a year.

"I had the statistician run the numbers twice. To have that kind of growth in a year, well you don't expect that," Chucri said.

Hiring in the leisure and hospitality industry has been a little heavier this March than on average from 2001 through 2010, the Commerce Department said.

On average, March usually shows a 1.8 percent gain in jobs over February, but this year, the March increase was 2.6 percent.

Hotels and resorts are also having a good season.

"Most of the properties I have talked to had a pretty strong first quarter. So, that kind of gives them the confidence to continue to move forward," said Kristen Jarnagin, a spokeswoman from the Arizona Hotel and Lodging Association.

Smith Travel Research said that occupancy at Phoenix-area hotels, resorts and motels grew 9 percent in February compared with a year earlier. Nationally, occupancy increased 5 percent.

Jarnagin also said hotel rates have dropped about 25 percent over the past two years and have yet to recover.

Overall, Arizona's job gain was just a fraction, or 0.2 percent, compared with March 2010. It appears that, after almost three years of job losses, the state is finally gaining again. Here is how the state stands on some key sectors:

- Health services and private education added 14,000 jobs over the year, a 4 percent increase. Of those, 9,300 were in health care.

Arizona State University economist Lee McPheters said his data shows that the Phoenix area ranks first among all metro areas for growth in health care, with 10,000 more jobs added over the year and a 5 percent growth rate.

"Health care is growing nationally, but its not growing more rapidly in any other big metro area," he said.

- The trade, transportation and utility industry added 4,500 jobs in March, compared with a year earlier. That is a 1 percent increase. The bulk of that growth was in transportation and warehousing.

- The manufacturing sector has had weak hiring: only 1,100 jobs over the year, or less than 1 percent. Aerospace and parts lost 1,400 positions.

- Construction added 2,000 jobs over the month. The Commerce Department said that is typical and is about average for March. But the sector is still down 2,700 jobs from a year earlier.

- Professional and business services have shown the greatest losses, or about 10,800 jobs over the year. These jobs include lawyers, accountants, scientists and employment-service or temp jobs.

- Government job losses continue to mount. The state had about 4,600 fewer government jobs in March than a year earlier, mostly at city, county and school-district levels.

by Betty Beard The Arizona Republic Apr. 15, 2011 12:00 AM





Arizona jobless rate drops to 9.5%