Arizona PYs 2020-2023 Published Approved

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. 

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 groupsin 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

Image removed.   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

Image removed. 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

Image removed.

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.