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New report shows strength of diversified metro Phoenix workforce

PHOENIX — Metro Phoenix added more than 98,000 jobs last year and now has 130,000 more jobs than before the COVID-19 pandemic, according to a new report.

The state has added more than 633,000 jobs over the last decade, a 25.7% increase, according to the Greater Phoenix Chamber Foundation’s 2023 State of the Workforce Report, which was released last week.

Jennifer Mellor, the Greater Phoenix Chamber Foundation’s chief innovation officer, said many of the new jobs are in high-demand, high-wage areas.

“The state has been very intentional about diversifying our economy an adding high-wage jobs. So you’re seeing a lot more of that translate in the new labor market data,” Mellor told KTAR News 92.3 FM on Friday.

“Specifically, transportation, warehousing, finance, construction, health care, professional and business services continue to drive the local economy.”

Mellor says one sector that has really picked up is manufacturing.

“That’s no surprise given the number of companies that have announced new facilities or have expanded existing operations,” she said. “Manufacturing now makes up 10% of our GDP as compared to 8% last year. So it’s now taken that second spot behind real estate in the local GDP.”

Mellor also points to the continuing growth in the semiconductor space with Taiwan Semiconductor and Intel along with growth in aerospace with Honeywell and Boeing.

Mellor said if the nation falls into a recession, as some are predicting, she expects it to be much softer in Arizona than other states because of the diversified economy.

“The Valley is well positioned when it comes to the labor market,” she said. “We have so many available and open jobs right now that even if we see a dip in the economy we’re going to see more of a leveling off than a downward slope.”