Phoenix MSA May 2026 Summary

Exhibit 1 presents current Phoenix-Mesa-Chandler MSA economic indicators.

In February, the non-seasonally adjusted civilian labor force in the Phoenix-Mesa-Chandler MSA (Phoenix MSA) fell 1.4% over the year to 2.7 million. January recorded a minor gain of 0.1% to 2.8 million.

Non-seasonally adjusted resident employment in the Phoenix MSA saw declines in both January and February. January employment fell 0.8% to 2.6 million, and February employment fell 2.1% to 2.6 million. Statewide, employment fell 2.4% over the year in February to 3.6 million, with the Phoenix MSA accounting for approximately 72.9% of the state’s total employment.

The non-seasonally adjusted unemployment rate in the Phoenix MSA showed year-over-year increases in both January and February of this year. In January, the unemployment rate came in at 4.4%, 0.9 percentage points higher than a year prior, while in February, the rate came in at 4.2%, 0.6 percentage points higher than last February. At the state level, the non-seasonally adjusted unemployment rate for January came in 0.8 percentage points higher than last year, at 4.8%. In February, the unemployment rate was 4.7%, a 0.7 percentage point increase, and in March it came in at 4.4%, a 0.5 percentage point increase.

Seasonally adjusted total nonfarm jobs in the Phoenix MSA fell 0.2% in March, losing approximately 4,200 jobs to reach 2.5 million. Other recent months have shown mild gains, with employment rising 0.2% in January and 0.5% in February. Statewide, Arizona lost 19,000 jobs in March, with the Phoenix MSA accounting for 68.6% of the state’s total seasonally adjusted jobs.

Non-seasonally adjusted nonfarm employment in the Phoenix MSA fell by 0.2% year over year in March, reaching 2.5 million jobs. This drop follows a year-over-year gain of 0.2% in February and a 0.3% decline in January. Among major industries, Mining and Logging posted the most significant year-over-year growth, rising 12.8% to 4,400. Other notable growth occurred in Other Services (2.7%), Professional and Business Services (0.3%), and Manufacturing (0.1%). On the other hand, the most significant losses occurred in Financial Activities (-3.0%), Construction (-1.4%), Trade, Transportation, and Utilities (-0.8%), Information (-0.7%), and Government (-0.4%)

Non-seasonally adjusted average hourly earnings in the Phoenix MSA continued to rise in the first quarter of 2026, with all three months showing year-over-year growth. Earnings increased 4.6% in January to $37.43, 3.5% in February to $37.34, and 2.9% in March to $37.45. At March’s rate, average full-time earnings equate to roughly $77,896.

Retail sales excluding food and gasoline rose 3.3% year-over-year in March, reaching $7.2 million. Gasoline sales saw the largest increase year-over-year in March, rising 26.2% to $753,800, followed by Hotel/ Motel with a 10.3% gain to $519,300 and Restaurants and Bars with a 0.5% increase to $1.7 million. Amusements experienced a slight 3.1% decline year-over-year in March to $197,700.

In March, non-seasonally adjusted housing permits in the Phoenix MSA declined year-over-year for both total and single-family units. Total permits dropped 16.5% to 3,000, while single-family permits fell 4.7% to 1,930. Activity was somewhat stronger in February, when total permits rose 14.4% to 3,269; however, single-family permits still showed a 0.1% decline to 2,123.

Total home sales in the Phoenix MSA rose 11.5% year over year in March, reaching 7,733 units. Furthermore, the average sale price saw similarly positive changes, rising 2.5% year over year to $648,000. In total, the value of housing sales climbed 14.3% year over year to $5.0 billion.

Exhibit 1: Phoenix-Mesa-Chandler MSA Monthly Economic Indicators