Located in:
- II. Strategic Elements
The Unified or Combined State Plan must include a Strategic Planning Elements section that analyzes the State’s current economic environment and identifies the State’s overall vision for its workforce development system. The required elements in this section allow the State to develop data-driven goals for preparing an educated and skilled workforce and to identify successful strategies for aligning workforce development programs to support economic growth. Unless otherwise noted, all Strategic Planning Elements apply to Combined State Plan partner programs included in the plan as well as to core programs.
- a. Economic, Workforce, and Workforce Development Activities Analysis
The Unified or Combined State Plan must include an analysis of the economic conditions, economic development strategies, and labor market in which the State’s workforce system and programs will operate.
- a. Economic, Workforce, and Workforce Development Activities Analysis
II. a. 1. B. Workforce Analysis
The Unified or Combined State Plan must include an analysis of the current workforce, including individuals with barriers to employment, as defined in section 3 of WIOA4. This population must include individuals with disabilities among other groups5 in the State and across regions identified by the State. This includes—
[4] Individuals with barriers to employment include displaced homemakers; low-income individuals; Indians, Alaska Natives, and Native Hawaiians; individuals with disabilities, including youth who are individuals with disabilities; older individuals; ex-offenders; homeless individuals, or homeless children and youths; youth who are in or have aged out of the foster care system; individuals who are English language learners, individuals who have low levels of literacy, and individuals facing substantial cultural barriers; farmworkers (as defined at section 167(i) of WIOA and Training and Employment Guidance Letter No. 35-14); individuals within 2 years of exhausting lifetime eligibility under the Temporary Assistance for Needy Families program; single parents (including single pregnant women); and long-term unemployed individuals.
[5] Veterans, unemployed workers, and youth, and others that the State may identify.
i. Employment and Unemployment
Provide an analysis of current employment and unemployment data, including labor force participation rates, and trends in the State.
ii. Labor Market Trends
Provide an analysis of key labor market trends, including across existing industries and occupations.
iii. Education and Skill Levels of the Workforce
Provide an analysis of the educational and skill levels of the workforce.
iv. Skill Gaps
Describe apparent ‘skill gaps’.
Current Narrative:
i. Employment and Unemployment
Population
Population growth in Arizona increased by 1.6 percent (110,302 individuals) in CY 2018. Roughly one-fifth of this growth (20.3 percent) is attributed to natural change (more births than deaths), while four-fifths of this growth (79.7 percent) is attributed to net migration (more individuals moving into Arizona than leaving). Special population changes are related to the temporary residencies caused by university students.
Figure 1
Source: Prepared by OEO in cooperation with the U.S. Census Bureau using 2010 Census data
Arizona’s population growth rate has exceeded 1.0 percent every year since CY 2012 (see Figure 1). CY 2009 and CY 2010 had particularly low population growth rates due to the impacts of the Great Recession. The employment levels in Arizona declined during these years, and, as employment opportunity is a major driver of population increases, net migration declined as well. As the state recovered, net migration began to increase. This population growth can, in turn, fuel additional economic growth through the infusion of new consumers demanding goods and services.
Unemployment
Arizona had an unemployment rate of 4.9 percent in June 2019, a significant improvement over the unemployment rate nearly ten years prior when peaked at 10.9 percent in December 2009 (see Figure 2). From December 2009 to June 2019, unemployment levels in Arizona declined by 168,639 individuals. The decline in the Arizona unemployment rate has largely followed the national trend of declining rates of unemployment during this same period. The United States unemployment rate was near its peak in December 2009 at 9.9 percent and has since declined 6.2 percentage points to 3.7 percent as of June 2019.
Figure 2
From 2010 through 2016, Arizona’s unemployment rate has consistently trended downward to historic lows. During the later years of the recovery, from 2017 through 2019, the Arizona unemployment rate began to flatten out or increase slightly. This change in trend was largely due to the significant increase in labor force levels during this same period. Arizona labor force growth was among the fastest of all states during this period as individuals entered into the workforce seeking employment opportunities.
Since April 2008, the Arizona unemployment rate has consistently trended above the United States unemployment rate. Between April 2018 and June 2019, the average difference between the two unemployment rates was 0.6 percent. Since August 2018, the difference has trended consistently over 1.0 percent and stands currently at 1.2 percent in June 2019. The higher unemployment rate in Arizona can be explained in part by the increase in population and labor force levels within the state. From 2008 to 2018, the civilian noninstitutional population has increased by 14.2 percent in Arizona. This is in comparison to the United States where its civilian noninstitutional population only grew by 10.3 percent. Consequently, a population increase in Arizona led to an increase in labor force levels, which grew by 8.6 percent from 2008 to 2018.
Unemployment rates vary dramatically between different demographic groups in the state. Table 7 displays 2018 unemployment rates by age group for Arizona and the United States. In both the United States and Arizona, the unemployment rates for individuals 45 to 54 years old was the lowest of all age group categories, while rates were highest for individuals 16 to 19 years old. Historically, it is typical for the unemployment rates among younger age groups to be higher than older age groups because of the differences in work experience and skill attainment in the two age groups.
Table 7: 2018 Unemployment Rate by Age Group
| Age Group | AZ Unemployment Rate | US Unemployment Rate |
|---|---|---|
| All Ages | 4.7% | 3.9% |
| 16 to 19 years | 17.3% | 12.9% |
| 20 to 24 years | 7.8% | 6.9% |
| 25 to 34 years | 5.0% | 3.9% |
| 35 to 44 years | 2.6% | 3.0% |
| 45 to 54 years | 2.3% | 2.8% |
| 55 to 64 years | 4.1% | 2.9% |
| 65 years and over | 5.8% | 3.3% |
Source: Produced by the Arizona Office of Economic Opportunity in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics
Unemployment rates were higher in Arizona compared to the United States for all but two age categories (individuals 35 to 44 years old and individuals 45 to 54 years old). Differences in unemployment rates were largest in individuals 16 to 19 years old and 65 years and older. Both age groups recorded significantly higher rates of unemployment in Arizona than in the United States as a whole.
In June 2019, the Labor Force Participation Rate[11] (LFPR) in Arizona was 61.6 percent of the civilian non-institutionalized population[12]. The LFPR in Arizona has grown modestly since June 2013 when the rate in Arizona was 59.6 percent. From June 2013 to June 2019, over 487,440 individuals entered into the labor force, which grew by 16.1 percent. In comparison, the United States labor force grew by 4.7 percent over the same period.
| Figure 3 |
Source: Produced by the Arizona Office of Economic Opportunity in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics; Local Area Unemployment Statistics
Table 8 displays the 2018 United States and Arizona LFPR for seven distinct age categories. The LFPR were lowest for individuals 16 to 19 years old and highest for those 35 to 44 years old in both Arizona and the United States. The LFPR were higher for all but one age category, individuals 20 to 24 years old, in the United States than they were in Arizona. The United States LFPR has consistently been higher than the Arizona LFPR for years so this is not a new development occurring in 2018.
Table 8: 2018 Labor Force by Age Group
| Age Group | AZ Labor Force Participation Rate | US Labor Force Participation Rate |
|---|---|---|
| All Ages | 61.2% | 62.9% |
| 16 to 19 years | 34.3% | 35.1% |
| 20 to 24 years | 77.3% | 71.1% |
| 25 to 34 years | 81.0% | 82.5% |
| 35 to 44 years | 81.1% | 82.9% |
| 45 to 54 years | 79.0% | 80.8% |
| 55 to 64 years | 63.0% | 65.0% |
| 65 years and over | 18.0% | 19.6% |
Source: Produced by the Arizona Office of Economic Opportunity in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics
From 1995 to 2018, the Arizona LFPR for teens aged 16 to 19 declined from a high of 63.1 percent to the current 34.3 percent. This dramatic decline in the LFPR among Arizona teens is consistent with trends occurring nationally and may not be particularly troublesome. One factor affecting the decline in teen labor force participation is the increase in the percentage of high school graduates pursuing higher education. For example, the High School Report Card, an annual publication by the Arizona Board of Regents, shows that between the 2015 to 2016 and 2016 to 2017 school year, the number of high school students enrolled at the university level increased by 900 individuals, or 6.3 percent.
Participation in the labor force for individuals ages 55 to 64 steadily increased from 56.5 percent in 1995 to 63.0 percent in 2018. This trend is also similar at the national level as the United States participation rate for this age group increased from 57.2 percent in 1995 to 65.0 percent in 2018. There are many factors that could be influencing individuals in older age categories to continue working, including advancements in medical technology resulting in increasing average life expectancy and raising the age of full retirement.
Special Populations
Veterans
The Bureau of Labor Statistics estimated a total population of 474,000 veterans in Arizona. Participation in the labor force for all Arizona veterans was 50.2 percent in 2018. While higher than the national veteran labor force participation rate, 49.2 percent, this was lower than the overall LFPR in Arizona of 61.2 percent.
Individuals with Disabilities
In 2018, 62.9 percent of the United States population over 16 years old was in the labor force, either employed or unemployed. Among individuals with a disability, the LFPR was only 20.8 percent. The national unemployment rate among people with disabilities was 8 percent in 2018, while the rate among people without disabilities was 3.7 percent. Within Arizona, individuals with disabilities are finding it harder to obtain employment. In 2018, individuals with disabilities represented 7.9 percent of total unemployed levels, yet represented only 3.7 percent of the total individuals employed. This suggests that individuals with disabilities represent a disproportionately large share of the total unemployed population.
Nationally, nearly half of individuals with a disability are over 65. In 2018, 49.1 percent of persons with a disability were age 65 and older, compared with 16 percent of those with no disability in this age group. Individuals with a disability often experience higher than average expenses and are required to continue to work when individuals without disabilities may be considering retirement.
Individuals with disabilities also participated in the labor force as part-time employees at a higher rate than the non-disabled population, 31 percent of workers with a disability are employed part-time, compared to 17 percent of non-disabled workers. This discrepancy is not the result of this subgroup intentionally pursuing part-time work; 4.0 percent of workers who were disabled and working part-time did so for economic reasons, versus 3.0 percent who were not disabled and worked part-time for economic reasons.
English Language Learners
Adults with low academic and/or low English language skills represent an additional group for which services are needed to help enter the workforce. According to the 2017 American Community Survey 5-Year Estimate, 14 percent of those living in Arizona who are 18 to 64 years of age lack a high school diploma or high school equivalency credential and 11 percent speak English “less than very well.”
Previously Incarcerated
Individuals who were previously incarcerated often face challenges when seeking out employment opportunities. In Arizona, the incarcerated population has been increasing at a faster rate than the general population. For example, from 2000 to 2015, the residential population in Arizona increased by 32.4 percent while the prison population increased 61.1 percent over the same period (Prison Population Initiative Report).
Industry Employment
At the end of 2018, Arizona recorded its eighth straight year of employment growth, marking the third longest period of expansion in the post-World War II era. From 2011 to 2018, employment grew by 444,600 jobs, growing 2.4 percent annually. Arizona employment reached 2,856,000 in 2018, surpassing pre-recession peak employment in 2007 by 176,600 jobs.
During the later years of the economic recovery from 2015 to 2018, Arizona employment growth increased, growing 2.7 percent annually. Employment growth in Arizona was consistently stronger than the United States as a whole, which grew by only 1.7 percent from 2015 to 2018. Employment growth was widespread throughout the Arizona economy. All 11 Arizona supersectors recorded positive employment change from 2015 to 2018 and 10 of 11 recorded stronger employment growth when compared to United States supersectors. Construction (7.5 percent growth) recorded the strongest employment growth rate among Arizona supersectors followed by Financial Activities (4.3 percent growth), Education and Health Services (3.7 percent growth), and Leisure and Hospitality (3 percent growth).
Table 9: Annual Average Arizona Total Nonfarm Employment
| Supersector | 2015 AZ Number of Jobs | 2018 AZ Number of Jobs | AZ Annual Percentage Gain/Loss | US Annual Percentage Gain/Loss |
|---|---|---|---|---|
| Total Nonfarm Employment | 2,636,400 | 2,856,000 | 2.7% | 1.7% |
| Natural Resources and Mining | 12,600 | 13,100 | 1.3% | -3.2% |
| Construction | 127,900 | 158,800 | 7.5% | 3.8% |
| Manufacturing | 158,300 | 170,100 | 2.4% | 1.0% |
| Trade, Transportation and Utilities | 505,200 | 534,500 | 1.9% | 1.1% |
| Information | 45,800 | 47,400 | 1.2% | 0.2% |
| Financial Activities | 194,800 | 220,800 | 4.3% | 1.8% |
| Professional and Business Services | 396,200 | 431,100 | 2.9% | 2.3% |
| Education and Health Services | 399,500 | 445,700 | 3.7% | 2.4% |
| Leisure and Hospitality | 299,200 | 326,600 | 3.0% | 2.5% |
| Other Services (except Public Administration) | 87,500 | 92,700 | 1.9% | 1.4% |
| Government | 409,600 | 415,200 | 0.5% | 0.5% |
Source: Produced by the Arizona Office of Economic Opportunity in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics
Sub-State Employment
Table 9 shows a significant portion of Arizona’s employment is concentrated in Maricopa County and Pima County. In 2018, these two counties accounted for 84.9 percent of total nonfarm employment within the state. Their share of the total Arizona employment is up 0.7 percent from 2015 levels, when Maricopa County and Pima County accounted for 84.2 percent of total Arizona employment. Maricopa County and Pima County were able to increase their total share of Arizona employment as these two counties saw the largest employment gains from 2015 to 2018.
Table 10 lists employment levels and 2015 to 2018 growth for the United States, Arizona, and Arizona’s 15 counties. Maricopa County recorded the fastest annual employment growth rate (3.3 percent growth) from 2015 to 2018; adding 190,700 jobs. Pima County recorded the second largest employment gain, adding 14,300 jobs, and growing 1.3 percent annually. Yavapai County recorded the second highest annual employment growth rates (3.2 percent growth) followed by Greenlee County (2.9 percent growth), Mohave County (2.8 percent growth), and Pinal County (2.2 percent growth). Navajo County, Cochise County, and Santa Cruz County are the only sub-state regions to record employment losses from 2015 to 2018.
Table 10: 2015 to 2018 Sub–State Nonfarm Employment
| Area | 2015 Employment Level | 2018 Employment Level | Employ-ment Level Gain/Loss (Numeric) | Annual Employment Gain/Loss (Percentage) |
|---|---|---|---|---|
| United States | 141,843,000 | 149,074,000 | 7,231,000 | 1.7% |
| Arizona | 2,636,400 | 2,856,000 | 219,600 | 2.7% |
| Maricopa County | 1,851,400 | 2,042,100 | 190,700 | 3.3% |
| Pima County | 367,200 | 381,500 | 14,300 | 1.3% |
| Yavapai County | 59,600 | 65,500 | 5,900 | 3.2% |
| Mohave County | 47,100 | 51,100 | 4,000 | 2.8% |
| Pinal County | 56,900 | 60,800 | 3,900 | 2.2% |
| Yuma County | 53,000 | 55,900 | 2,900 | 1.8% |
| Coconino County | 65,400 | 68,100 | 2,700 | 1.4% |
| Greenlee County | 4,500 | 4,900 | 400 | 2.9% |
| Apache County | 18,000 | 18,300 | 300 | 0.6% |
| Graham County | 8,700 | 9,000 | 300 | 1.1% |
| Gila County | 14,900 | 15,000 | 100 | 0.2% |
| La Paz County | 5,300 | 5,400 | 100 | 0.6% |
| Navajo County | 27,200 | 26,900 | -300 | -0.4% |
| Santa Cruz County | 13,400 | 12,900 | -500 | -1.3% |
Source: Produced by the Arizona Office of Economic Opportunity in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics
Occupation Employment
Table 11 displays 2018 employment and wage estimates for 22 major occupation groups[13]. The largest major occupational group in Arizona was Office and Administrative Support with 472,350 jobs followed by Sales and Related (289,090 jobs), Food Preparation and Serving-Related (264,850 jobs), and Transportation and Material Moving (171,900 jobs) occupations. Together, these four major occupation groups represented 43 percent of total 2018 Arizona employment.
Table 11: 2018 Arizona Occupational Employment & Hourly Wage Estimates
| SOC Code* | Occupational Title | AZ Median Hourly Wage | US Median Hourly Wage | AZ Share of Total Employment Level | US Share of Total Employment Level |
|---|---|---|---|---|---|
| 00-0000 | All Occupations | $17.80 | $18.58 | 100.0% | 100.0% |
| 11-0000 | Management | $43.27 | $50.11 | 6.0% | 5.3% |
| 13-0000 | Business and Financial Operations | $29.48 | $32.86 | 5.3% | 5.3% |
| 15-0000 | Computer and Mathematical | $38.04 | $41.51 | 3.4% | 3.0% |
| 17-0000 | Architecture and Engineering | $37.60 | $38.55 | 1.9% | 1.8% |
| 19-0000 | Life, Physical, and Social Science | $27.26 | $31.77 | 0.7% | 0.8% |
| 21-0000 | Community and Social Service | $19.31 | $21.62 | 1.5% | 1.5% |
| 23-0000 | Legal | $33.53 | $38.85 | 0.7% | 0.8% |
| 25-0000 | Education, Training, and Library | $19.81 | $23.89 | 5.1% | 6.1% |
| 27-0000 | Arts, Design, Entertainment, Sports, and Media | $21.40 | $23.70 | 1.1% | 1.3% |
| 29-0000 | Healthcare Practitioners and Technical | $34.01 | $31.94 | 5.8% | 6.0% |
| 31-0000 | Healthcare Support | $14.61 | $14.30 | 2.6% | 2.8% |
| 33-0000 | Protective Service | $19.81 | $19.54 | 2.8% | 2.4% |
| 35-0000 | Food Preparation and Serving Related | $11.48 | $11.09 | 9.5% | 9.2% |
| 37-0000 | Building and Grounds Cleaning and Maintenance | $12.11 | $12.91 | 3.0% | 3.1% |
| 39-0000 | Personal Care and Service | $11.61 | $11.74 | 4.0% | 3.8% |
| 41-0000 | Sales and Related | $13.05 | $13.55 | 10.4% | 10.0% |
| 43-0000 | Office and Administrative Support | $16.74 | $17.19 | 16.9% | 15.1% |
| 45-0000 | Farming, Fishing, and Forestry | $11.40 | $12.20 | 0.4% | 0.3% |
| 47-0000 | Construction and Extraction | $20.14 | $22.12 | 4.5% | 4.1% |
| 49-0000 | Installation, Maintenance, and Repair | $20.69 | $21.89 | 4.1% | 3.9% |
| 51-0000 | Production | $16.39 | $16.86 | 4.0% | 6.3% |
| 53-0000 | Transportation and Material Moving | $15.54 | $15.74 | 6.2% | 7.1% |
* The Standard Occupational Classification (SOC) system is a federal statistical standard used by federal and state agencies to classify workers into occupational categories for the purpose of collecting, calculating, or disseminating data.
Source: Produced by the Arizona Office of Economic Opportunity in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics
The composition of Arizona major occupation groups was like that of United States occupations in 2018. The four largest occupation groups in Arizona were also the largest major occupation groups in the United States. The largest difference in major occupation group composition between Arizona and the United States was in Production occupation employment. Production jobs represented only 4.0 percent of total Arizona jobs while they represented 6.3 percent of total United States jobs. The second largest difference in occupational composition between Arizona and the United States occurred in Office and Administrative Support, which represented 16.9 percent of total Arizona employment but only 15.1 percent of total United States employment.
The 2018 median hourly wage level for all occupations in Arizona was $17.80 (see Table 11), which is less than the United States median hourly wage of $18.58. In both Arizona and the United States, the Management major occupation group had the highest median wages of all major occupation groups, paying $43.27 per hour in Arizona and $50.11 in the United States. The major occupational group with the lowest median wages in Arizona was Farming, Fishing, and Forestry ($11.40 median hourly wage) followed by Food Preparation and Serving Related occupations ($11.48 median hourly wage). United States median hourly wages are higher than Arizona median hourly wages for all major occupation groups except for the following: Healthcare Practitioners and Technical; Healthcare Support; Protective Service; Food Preparation and Serving-Related.
ii. Labor Market Trends
Short–Term Industry Employment Projections
Table 12: 2018 to 2020 Arizona Industry Projections
| Industry | 2018 Estimated Employment | 2020 Projected Employment | 2-Year Numeric Change | Annual Percentage Change |
|---|---|---|---|---|
| Total Nonfarm | 3,015,242 | 3,180,933 | 165,691 | 2.7% |
| Construction | 158,789 | 177,677 | 18,888 | 5.8% |
| Education and Health Services | 619,441 | 656,567 | 37,126 | 3.0% |
| Financial Activities | 214,000 | 225,414 | 11,414 | 2.6% |
| Government | 159,602 | 161,658 | 2,056 | 0.6% |
| Information | 49,029 | 50,401 | 1,372 | 1.4% |
| Leisure and Hospitality | 350,758 | 370,013 | 19,255 | 2.7% |
| Manufacturing | 168,979 | 181,463 | 12,484 | 3.6% |
| Natural Resources and Mining | 53,142 | 54,447 | 1,305 | 1.2% |
| Other Services | 100,260 | 104,569 | 4,309 | 2.1% |
| Professional and Business Services | 427,874 | 454,051 | 26,177 | 3.0% |
| Trade, Transportation, and Utilities | 541,973 | 563,714 | 21,741 | 2.0% |
Source: Produced by the Arizona Office of Economic Opportunity in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics
According to Table 12, which cites the most recent short-term industry employment projections, Arizona total nonfarm employment is projected to increase by 165,691 jobs between 2018 and 2020. This represents an annualized growth rate of 2.7 percent. From 2016 to 2018, nonfarm employment increased by 2.7 percent annually.
All 11 Arizona supersectors are projected to gain jobs between 2018 to 2020. Education and Health Services is projected to record the largest employment change, adding 37,126 jobs. Other supersectors projected to record strong employment gains include Professional and Business Services (26,177 jobs), Trade, Transportation and Utilities (21,741 jobs), Leisure and Hospitality (19,255 jobs), Construction (18,888 jobs), Manufacturing (12,484 jobs), and Financial Activities (11,414 jobs). Smaller employment gains are projected to occur within Other Services (4,309 jobs), Government (2,056 jobs), Information (1,372 jobs) and Natural Resources and Mining (1,305 jobs).
Employment is projected to grow throughout all seven Arizona metro areas from 2018 to 2020. Table 13 displays 2018 and 2020 employment estimates, along with two-year numeric and annual percentage changes for state and sub-state local workforce investment areas. For the state as a whole, employment is projected to grow 2.7 percent annually. Maricopa County is projected to be the fastest growing sub-state area, growing by 3.2 percent annually. Santa Cruz County is projected to record the slowest growth of any Sub-State area, at 0.3 percent annually.
Table 13: 2018 to 2020 State and Sub-State Employment Projections
| Area | 2018 Estimated Employment | 2020 Projected Employment | 2-Year Numeric Change | Annual Percentage Change |
|---|---|---|---|---|
| Arizona | 3,015,242 | 3,180,933 | 165,691 | 2.7% |
| City of Phoenix | 984,294 | 1,025,152 | 40,858 | 2.1% |
| Coconino County | 70,609 | 72,920 | 2,311 | 1.6% |
| Maricopa County | 2,133,853 | 2,272,310 | 138,457 | 3.2% |
| Mohave and La Paz Counties | 62,236 | 65,596 | 3,360 | 2.7% |
| Northeastern Arizona* | 65,904 | 67,190 | 1,286 | 1.0% |
| Pima County | 398,986 | 410,891 | 11,905 | 1.5% |
| Pinal County | 67,567 | 69,560 | 1,993 | 1.5% |
| Santa Cruz County | 15,145 | 15,246 | 101 | 0.3% |
| Southeastern Arizona** | 61,057 | 61,638 | 581 | 0.5% |
| Yavapai County | 71,809 | 75,770 | 3,961 | 2.7% |
| Yuma County | 67,951 | 69,817 | 1,866 | 1.4% |
*Northeastern Arizona - Includes of Navajo, Apache, and Gila Counties
**Southeastern Arizona - Includes Graham, Greenlee, and Cochise Counties
Source: Produced by the Arizona Office of Economic Opportunity in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics.
Short–Term Occupation Employment Projections
According to the most recent occupational employment projections released by OEO, employment within all 22 major occupation groups is projected to increase from 2018 to 2020. The major occupation group projected to record the largest number of job openings is Office and Administrative Support (20,844 jobs), followed by Food Preparation and Serving Related (15,501 jobs). The largest employment percentage growth is projected to occur within Construction and Extraction Occupations, which is projected to record 4.5 percent growth annually, followed by Healthcare Support, growing 4.2 percent annually. See Table 14 for the full list of projected occupation employment growth.
Table 14: 2018 to 2020 Arizona Occupational Projections
| SOC Code* | SOC Title | 2018 Estimated Employment Level | 2020 Projected Employment Level | 2-Year Numeric Change | Annual Percentage Change |
|---|---|---|---|---|---|
| 00-0000 | All Occupations | 3,015,240 | 3,180,944 | 165,704 | 2.7% |
| 11-0000 | Management | 223,710 | 237,163 | 13,453 | 3.0% |
| 13-0000 | Business and Financial Operations | 155,412 | 164,724 | 9,312 | 3.0% |
| 15-0000 | Computer and Mathematical | 96,240 | 103,370 | 7,130 | 3.6% |
| 17-0000 | Architecture and Engineering | 52,394 | 56,310 | 3,916 | 3.7% |
| 19-0000 | Life, Physical, and Social Science | 21,513 | 22,572 | 1,059 | 2.4% |
| 21-0000 | Community and Social Service | 45,352 | 48,130 | 2,778 | 3.0% |
| 23-0000 | Legal | 21,749 | 23,176 | 1,427 | 3.2% |
| 25-0000 | Education, Training, and Library | 140,081 | 144,432 | 4,351 | 1.5% |
| 27-0000 | Arts, Design, Entertainment, Sports, and Media | 47,413 | 49,571 | 2,158 | 2.3% |
| 29-0000 | Healthcare Practitioners and Technical | 168,831 | 180,463 | 11,632 | 3.4% |
| 31-0000 | Healthcare Support | 76,320 | 82,832 | 6,512 | 4.2% |
| 33-0000 | Protective Service | 71,241 | 72,904 | 1,663 | 1.2% |
| 35-0000 | Food Preparation and Serving Related | 270,426 | 285,927 | 15,501 | 2.8% |
| 37-0000 | Building and Grounds Cleaning and Maintenance | 100,086 | 105,014 | 4,928 | 2.4% |
| 39-0000 | Personal Care and Service | 126,838 | 135,762 | 8,924 | 3.5% |
| 41-0000 | Sales and Related | 338,392 | 348,057 | 9,665 | 1.4% |
| 43-0000 | Office and Administrative Support | 477,363 | 498,207 | 20,844 | 2.2% |
| 45-0000 | Farming, Fishing, and Forestry | 25,313 | 25,892 | 579 | 1.1% |
| 47-0000 | Construction and Extraction | 143,735 | 157,044 | 13,309 | 4.5% |
| 49-0000 | Installation, Maintenance, and Repair | 123,929 | 131,279 | 7,350 | 2.9% |
| 51-0000 | Production | 123,483 | 130,684 | 7,201 | 2.9% |
| 53-0000 | Transportation and Material Moving | 165,419 | 177,431 | 12,012 | 3.6% |
* The SOC system is a federal statistical standard used by federal and state agencies to classify workers into occupational categories for the purpose of collecting, calculating, or disseminating data.
Source: Produced by OEO in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics.
iii. Education and Skill Levels of Workforce
Table 15 shows the educational attainment of Arizona’s total population. This table shows that Arizona has a higher percent share of individuals with less than a high school diploma than what is seen nationally. The state also has a higher share of individuals with some college, no degree.
Table 15: Educational Attainment of Arizonans Age 25 and Older Compared to U.S. *
| Educational Level Attained | Arizona Population Estimate | Arizona Percent | United States Percent |
|---|---|---|---|
| Less than 9th grade | 254,700 | 5.4% | 5.1% |
| 9th to 12th grade, no diploma | 350,198 | 7.4% | 6.9% |
| High school graduate (includes equivalent) | 1,136,493 | 24.1% | 27.1% |
| Some college, no degree | 1,178,809 | 25% | 20.4% |
| Associates degree | 408,070 | 8.7% | 8.5% |
| Bachelor’s degree | 863,062 | 18.3% | 19.7% |
| Graduate or professional degree | 520,053 | 11% | 12.3% |
Source: U.S. Census 2017 American Community Survey 1-Year Estimate
*Population estimates include all Arizonans age 25 and older including those not in the labor force (e.g. individuals who are retired, homemakers, in school, etc.).
iv. Skills Gaps.
As current economic conditions improve, the need for middle and high-skilled workers continues to put pressure on today’s labor market. Table 16, Table 17, and Table 18 categorize 2018 and 2020 occupation employment by respective education, job experience, and on-the-job training requirements[14] to help identify current and forecasted needs. Table 15 (in section iii above) shows the educational attainment of adults aged 25 and older.
Occupations requiring low levels of education represent a large portion of Arizona jobs. In 2018, occupations requiring either a high school diploma or no high school diploma were the two largest employment by education categories, and it is projected that these two categories will remain the largest through 2020, as illustrated in Table 16. While occupations requiring low levels of education are among the largest categories, they are projected to grow at a slower rate from 2018-2020 than occupations requiring higher levels of education. Occupations requiring an associate degree are projected to record the fastest growth, growing by 6.7 percent annually. Other occupation education categories projected to record strong growth include postsecondary non-degree awards (6.3 percent growth), bachelor’s degree (6.1 percent growth), master’s degree (5.9 percent growth) and doctoral or professional degree (5.8 percent growth).
Table 16: 2018 to 2020 Arizona Employment by Occupation Minimum Educational Requirements
| Minimum Educational Requirement* | 2018 Estimated Employment Level | 2020 Projected Employment Level | Growth Rate |
|---|---|---|---|
| Less than high school | 746,931 | 783,640 | 4.9% |
| High school diploma or equivalent | 1,195,505 | 1,260,074 | 5.4% |
| Some college, no degree | 65,915 | 68,705 | 4.2% |
| Postsecondary non-degree award | 170,032 | 180,801 | 6.3% |
| Associate's degree | 70,796 | 75,546 | 6.7% |
| Bachelor's degree | 648,680 | 687,965 | 6.1% |
| Master's degree | 50,787 | 53,772 | 5.9% |
| Doctoral or professional degree | 66,594 | 70,441 | 5.8% |
*In this table, Minimum Education Requirement means the minimum education required by the job and not the educational attainment of the worker
Source: Produced by OEO in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics.
The majority of occupations do not require job seekers to possess prior work experience in order to be competitive. In 2018, only 16.7 percent of Arizona workers were employed in occupations that require some work experience, as illustrated in Table 17. Work experience is an important attribute for occupations that require employee oversight, such as managers, supervisors or administrators. This trend is consistent across all educational attainment levels that require work experience. Occupations requiring work experience, but little to no employee oversight, typically include the self-employed, such as private detectives or writers.
Table 17 identifies on-the-job training requirements for Arizona occupations. Unlike work experience requirements, a majority of occupations require at least some on-the-job training. In 2018, only 35.8 percent of jobs provided no on-the-job training, while 61.5 percent of jobs required short-term, moderate or long-term on-the-job training. Occupations requiring an internship, residency, or apprenticeship represented 2.8 percent of jobs in 2018.
Table 17: Arizona Employment by Occupation Job Experience
| Job Experience | 2018 Estimated Employment Level | 2018 Estimated Share of Total Employment | 2020 Projected Employment Level | 2020 Projected Share of Total Employment |
|---|---|---|---|---|
| None | 2,511,274 | 83.3% | 2,649,789 | 83.3% |
| Less than 5 years | 333,735 | 11.1% | 350,416 | 11.0% |
| 5 years or more | 170,231 | 5.6% | 180,739 | 5.7% |
Source: Produced by the Arizona Office of Economic Opportunity in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics.
Table 18: Arizona Employment by Occupation Job On–the–Job Training
| On-the-Job Training | 2018 Estimated Employment Level | 2018 Estimated Share of Total Employment | 2020 Projected Employment Level | 2020 Projected Share of Total Employment |
|---|---|---|---|---|
| None | 1,078,073 | 35.8% | 1,140,467 | 35.9% |
| Internship/residency | 36,042 | 1.2% | 38,443 | 1.2% |
| Apprenticeship | 48,522 | 1.6% | 53,184 | 1.7% |
| Short-term on-the-job training | 1,259,761 | 41.8% | 1,322,264 | 41.6% |
| Moderate-term on-the-job training | 502,401 | 16.7% | 530,756 | 16.7% |
| Long-term on-the-job training | 90,441 | 3.0% | 95,830 | 3.0% |
Source: Produced by the Arizona Office of Economic Opportunity in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics.
[11] The labor force participation rate (LFPR) is the labor force as a percent of the civilian noninstitutional population.
[12] The civilian noninstitutional populations include persons 16 years of age and older who are not inmates of institutions (for example, penal and mental facilities, homes for the aged), and who are not on active duty in the Armed Forces.
[13]Occupation employment estimates group employment by the type of job an employee performs.
[14]BLS uses a system to assign categories for entry–level education, work experience in a related occupation, and typical on–the–job training to each occupation. Categories do not necessarily identify the exact level of education, job experience or on–the–job training an individual employed in that occupation has. For more information regarding education, job experience and on–the–job assignments visit: http://www.bls.gov/emp/ep_education_tech.htm.