Thread: 17,200 new jobs a boost for Arizona

17,200 new jobs a boost for Arizona

by Betty Beard - May. 20, 2011 12:00 AM
The Arizona Republic

Arizona's employment picture brightened considerably in April, with unusually high growth in jobs and a drop in the unemployment rate, the Arizona Department of Commerce reported Thursday.

The state gained 17,200 jobs from March to April. That's more than twice the 10-year average of 8,000 seasonally adjusted jobs created in April for the years 1998-2007, before the Great Recession hit.

April also brought the third straight month of both job gains and a drop in the unemployment rate. The state jobless rate fell to 9.3 percent in April from 9.5 percent in March.

News about the falling unemployment rate was bittersweet because it triggered the probable loss of 20 weeks of extended unemployment-insurance benefits for thousands of jobless workers.

Unless the state Legislature acts quickly, about 15,400 Arizonans could lose their unemployment stipends in a month. And all unemployment recipients would be restricted to 79 weeks of state and federal benefits instead of 99 weeks.

Gov. Jan Brewer would like to change the law and has begun talking to legislators to see if there is enough interest to call a special session, said Matthew Benson, her spokesman.

And overall, economists continue to hold their breaths about the recovery because post-recession job growth has been volatile and so slow to bounce back.

Aruna Murthy, a Commerce Department economist, cautioned that one month of good job gains doesn't mean the trend will continue.

Arizona State University economist Tom Rex said the April data likely is a one-time aberration. "We've had a few other strong months in the last year, but those were offset by weak months. That is the nature of survey data," he said.

"Until this kind of strength occurs for at least three consecutive months, little should be made of it."

Benefit cuts looms

Continuation of the final 20 weeks of unemployment pay is threatened by a complex formula that compares the three-month average of unemployment rates today with what they were two years ago.

The new jobless rate announced Thursday lowered the three-month average unemployment rate to less than 110 percent of the rate two years ago.

That triggered a provision in state and federal laws that stops the final 20 weeks of benefits.

For the 20 weeks of benefits to continue, legislators would have to pass a law that compares the rates with three years ago, when the unemployment rate was less than half of what it is now.

That would extend the benefits through the end of the year. Congress so far has not funded extended benefits beyond Dec. 31, according to the state Department of Economic Security.

At least five other states have lost their 20 weeks of benefits because they did not adopt a third year "look back" provision.

Unless the law is changed, an estimated 15,400 residents now receiving the last 20 weeks of extended benefits - those between 79 and 99 weeks - would have their benefits halted in June, according to Jim Apperson, an assistant director at the DES.

Benson said the Legislature will have to act fast, holding a session before Memorial Day, and that it will need a two-thirds majority in both chambers to enact an emergency clause to speed the legislation into law. Otherwise, a bill allowing the extra 20 weeks of benefits could not take effect for 90 days.

"This is both an important safety net for the long-term unemployed as well as a critical economic boost for the state's economy," Benson said. "It's almost $3.5 million a week in federal money for the economy."

Improved job picture

Meanwhile, the job picture improved strikingly in April. Unexpectedly strong hiring in construction as well as gains in health services, private education, retail trade and leisure and hospitality positions helped give Arizona 2,414,500 jobs, or 17,200 more non-farm positions in April compared with March. That number has yet not been seasonally adjusted.

Ten out of 11 sectors gained jobs from March to April, the exception being financial activities such as banks.

The gain compared with April 2010 was 10,800 jobs, or 0.4 percent, a small dent in the more than 300,000 jobs the state has lost since the recession began in December 2007.

The construction industry has been especially volatile. It added 3,900 jobs from March to April but still had 2,000 fewer jobs than in April 2010.

Patrick Burkhart, assistant director of Maricopa County's Human Services Department, said the construction hires could mean that many projects funded by federal stimulus dollars last year are finally starting, as well as an Intel Corp. project expected to create about 600 construction jobs in Chandler.

Commerce Department economists also speculated that more workers have been called into action to repair hail and air-conditioning damage from October storms and to assist with a surge in home improvements.

Arizona taxable sales at building material, lawn and garden stores in March rose almost 6 percent over a year earlier, the Arizona Department of Revenue reported.

As further evidence of a pickup in construction jobs, Burkhart said, Maricopa Workforce Connections, which he oversees, is seeing a sharp increase in employment for union apprentices in construction trades.

A year ago, only about 10 percent of apprentices in fields such as electricity and sheet metal were landing jobs. Today, about 90 percent are, he said.

The leisure-and-hospitality sector, which includes hotels, resorts, restaurants and bars, added 2,600 workers from March 31 to April 30, slightly better than the pre-recession average of 2,200.

Tourism jobs are expected to be strong over the summer because downtown Phoenix alone is expecting a whopper of a summer, with at least 225,000 visitors, according to the Greater Phoenix Convention & Visitors Bureau.

The bigger upcoming events and their attendance are: Major League Baseball All-Star FanFest, 100,000; General Council of the Assemblies of God, 36,000; volleyball festival, 15,000; Southern Baptist convention, 12,000, and Benevolent & Protective Order of the Elks, 10,000. Those events are expected to generate at least $143 million in revenues for the metro area, said Scott Dunn, a spokesman for the bureau.

Long-term jobless

Despite improving conditions, job prospects remain dim for the long-term unemployed who now face losing 20 weeks of benefits in a still-weak job market.

"Even though the employment picture is improving, we are still so far behind in terms of the number of jobs lost, in terms of what we have to replace," Burkhart said.

He said those 55 and older, military veterans and young people are having an especially hard time finding work.

Stan Flowers, workforce-development supervisor for Phoenix Workforce Connections, said his staff also works with experienced industrial, mechanical and other engineers who are finding the job market tough. "I think there might be a glut for them," he said.

The Workforce Connections programs and career centers they operate offer jobless workers resume writing, interviewing and other skills they may need in a highly competitive job market.

"When you interview for a job, there are eight other people who look just like you on paper," Flowers said. "Obviously, only one is going to get a job. You've got to make sure you are the one person."

http://www.azcentral.com/business/artic ... rops-.html

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