Arizona is One of the States Least Affected by Labor Shortages

It is no secret that the country is facing labor shortages. These shortages have affected all industries and states. Recent data shows that Arizona is one of the least impacted states.



A Closer Look at the Research


Career Cloud completed a study to determine which states were the most and least impacted by the country’s labor shortage. The study relied on data from the Bureau of Labor Statistics (BLS), CareerBuilder, ZipRecruiter, and Indeed.


To determine the rankings, researchers compared the number of job openings in every state with that state’s number of unemployed.



Arizona Is the 8th Least Affected


The study found that of all of the 50 states and Washington, D.C., Arizona is the eighth least affected. Specifically, it had just 0.56 job openings for each unemployed person. Hawaii, the least-impacted state, had 0.41 job openings per unemployed person. Rankings two through seven were filled by California, Nevada, Connecticut, Louisiana, and New Mexico.


On the other end of the spectrum, D.C. was hit the hardest by the labor shortage. It had 2.37 job openings for every unemployed person. This was followed by Nebraska with a rate of 1.8, New Hampshire at 1.6, and Vermont at 1.59.



Other Relevant Data


The study reported an unemployment rate of 6.6 percent in Arizona. For reference, the highest rate in the country is 7.7 percent in Nevada, while the lowest is 2.3 percent in Nebraska.


The study also looked at the decline in the unemployment rate from July 2020 to July 2021. Remember, in July 2020, many businesses were still closed due to the pandemic. Arizona’s decline in unemployment during this period was 3.8 percent. Nevada had the largest decline at 8.9 percent. By contrast, Kentucky had the smallest reduction, just 1.2 percent.


The Connection Between Wages and Openings


In addition to ranking states by how much they were affected, the study also compared industries. Researchers found that industries with the highest median wages had the lowest number of available job openings. Professional and business services was the only sector that has a higher median wage than the national average and over a million job openings.




While Arizona is indeed affected by the labor shortage, it is still doing better than most states. There are only 0.56 job openings for every Arizonian who is unemployed. Notably, Arizona also saw a decline in its unemployment rate between July 2020 and July 2021.