- 8,830 more businesses
- 366,367 more employees
- 39.7% increase in total wages
- $7,602 in additional annual wages per employee
- 18.0% increase in wages per employee
Since 2009, the number of businesses in Arizona has grown by 6.0% (3.5% less than the national average of 9.5%). Employment in Arizona has grown by 18.4% (3.9% greater than the national average of 14.4%). Wages have grown by 18.0% since the end of the Great Recession. This wage growth is 4.5% less than the national average of 22.5%.
The average weekly wage in Arizona of $957 is 10.1% below the national average of $1,064. The gap between the national average has widened from 6.6% a widening of 3.5% since the end of the recession.
The Professional services sector has the most businesses in the state of Arizona . Since the end of the recession, the number of businesses has grown from 19,870 to 20,927, a gain of 5.3%. The table below illustrates the change in number of businesses in each sector:
|Accommodation and food services||10,949||9,699||12.9%|
|Finance and insurance||8,272||8,689||-4.8%|
|Real estate and rental||7,482||7,871||-4.9%|
|Transport and warehousing||3,021||3,180||-5.0%|
|Arts and entertainment||1,822||1,723||5.7%|
|Agriculture and forestry||1,051||1,072||-2.0%|
|Mining and oil extraction||205||206||-0.5%|
There has been a significant amount of movement in the types of businesses operating in Arizona. Of the 19 NAICS Sectors tracked by the Bureau of Labor Statistics, 11 of them had a decline in the number of businesses operating since 2009. Construction and Wholesale trade dropped the most with Construction declining by 27.2% and Wholesale trade declining by 20.9% a combined total of 7,210 businesses. Retail trade, the sector with the second most businesses declined by 6.3% making 3 of the top 5 sectors losing businesses since the recession.
The two sectors that had the largest increase were Educational services, increasing by 21.5% and the Information sector which grew by 12.8%.
The Healthcare sector employs the most workers in the state of Arizona . The number of jobs has increased 28.8% since the end of the recession from 280,412 to 361,161. The table below illustrates the change in employment in each sector:
|Accommodation and food services||274,495||222,753||23.2%|
|Finance and insurance||155,755||120,180||29.6%|
|Transport and warehousing||82,597||66,502||24.2%|
|Real estate and rental||50,785||46,044||10.3%|
|Arts and entertainment||42,581||32,704||30.2%|
|Agriculture and forestry||25,617||23,798||7.6%|
|Mining and oil extraction||11,599||11,008||5.4%|
Two of the 19 sectors have fewer workers than in 2009, Wholesale trade, which declined by 5.1% (about 5,000 workers) and Utilities which declined by 2.1%. Several sectors grew more than the largest employer, Healthcare since the recession. Those sectors are: Finance and insurance (+29.6%), Educational services (+31.6%) and Arts and entertainment (+30.2%) which combined for an increase of 60,000 jobs. The Accommodation and food services sector grew by nearly 52,000 jobs since 2009 or 23.2%.
The sector with the highest wages is the Utilities sector at $2,017. Prior to the recession, the sector’s average weekly wage was $1,697. This is an increase of $320 per week or 18.9%. The table below illustrates the change in average weekly wages in each sector:
|Mining and oil extraction||$1,520||$1,294||17.5%|
|Finance and insurance||$1,413||$1,096||28.9%|
|Real estate and rental||$989||$798||23.9%|
|Transport and warehousing||$981||$842||16.5%|
|Arts and entertainment||$736||$642||14.6%|
|Agriculture and forestry||$628||$478||31.4%|
|Accommodation and food services||$408||$335||21.8%|
Wages in all sectors grew, but a couple of them did not grow as fast as the rest. Healthcare, which is the largest employer in the state had wages increase by 8.7%, significantly below the state average of 18%. The other sub-10% sector is Educational services which grew at 9.5% to $818 per week. The sectors with the fastest growth is the Finance and insurance sector where wages increased 28.9% from $1,096 per week to $1,413 and the Agriculture and forestry sector which grew by 31.4%. Agriculture significantly lags the state average of $964 by over 34%.
Each of the sectors in the previous section are made up of a number of detailed industries. The top industry that has experienced the most growth (as a percent) since the recession is Computer systems design and related services which has grown 35.1%. The top industry that has contracted the most is Wholesale trade agents and brokers which has contracted by 35.6% in the years since the recession. The table below illustrates the 10 largest industries and their change in the number of businesses since the recession:
|Wholesale trade agents and brokers||4,776||7,418||-35.6%|
|Offices of physicians||4,434||4,724||-6.1%|
|Computer systems design and related services||4,300||3,182||35.1%|
|Management consulting services||4,010||4,214||-4.8%|
|Offices of real estate agents and brokers||3,331||3,741||-11.0%|
|Offices of lawyers||2,917||2,836||2.9%|
|Accounting and bookkeeping services||2,905||2,770||4.9%|
|Insurance agencies and brokerages||2,637||2,636||0.0%|
|Offices of dentists||2,341||2,354||-0.6%|
The industry that has experienced the most growth in number of employees (as a percent) since the recession is Telephone call centers which has grown 84.3%. The industry that has lost the most employees is Professional employer organizations which has contracted by 5.7% in the years since the recession. The table below illustrates the 10 largest industries and their change in the number of employees since the recession:
|General medical and surgical hospitals||89,623||72,177||24.2%|
|Offices of physicians||56,684||49,862||13.7%|
|Supermarkets and other grocery stores||54,275||51,513||5.4%|
|Temporary help services||47,523||28,749||65.3%|
|Professional employer organizations||47,032||49,870||-5.7%|
|Hotels and motels, except casino hotels||43,314||41,672||3.9%|
|Computer systems design and related services||34,216||21,623||58.2%|
|Telephone call centers||31,721||17,213||84.3%|
|Management of companies and enterprises||31,189||26,558||17.4%|
Since the recession ended, the industry that has experienced the greatest increase in average weekly pay per employee (as a percent) is All other personal services which has grown 200.6%. The average weekly wage in the Satellite telecommunications industry has grown by 2.2% since the recession. This is the industry with the lowest change in wages amonth the top industries in Arizona . The table below illustrates the 10 largest industries and their change in the average weekly wages since the recession:
|Commodity contracts dealing||$4,327||$1,582||173.5%|
|Commodity contracts brokerage||$2,912||$1,080||169.6%|
|Semiconductor and electronic component mfg.||$2,570||$1,726||48.9%|
|Industrial gas manufacturing||$2,449||$1,352||81.1%|
|Computer and software merchant wholesalers||$2,416||$1,793||34.7%|
|Electric power transmission and distribution||$2,340||$1,212||93.1%|
|Medical equipment merchant wholesalers||$2,185||$1,762||24.0%|
|All other personal services||$2,158||$718||200.6%|
Please note, during the comparison period the NAICS coding has had changes made to it. For proper comparisons we are only including industries that have NOT been affected by these changes.
The biggest percentage change in the number of businesses has been in businesses with 1,000 or more employees. The number of businesses with this number of employees has grown from 126 to 174, which is an increase of 38.1%.
The smallest percentage change in the number of businesses has been in businesses with 5 to 9 employees. The number of businesses with this number of employees has grown from 21,020 to 22,472, which is an increase of 6.9%.
Table: Change in the number of Businesses by Size of Business, since the Recession:
|Company Size||Q1 2018||Q1 2010||% Change|
|Fewer than 5 Employees||100,093||90,388||10.7%|
|More Than 1,000 Employees||174||126||38.1%|
The biggest percentage change in the number of employees has been in businesses with 500 to 999 employees. The number of employees in companies this size has grown from 159,201 to 218,725, which is an increase of 37.4%.
The smallest percentage change in the number of employees has been in businesses with 5 to 9 employees. The number of employees with this number of employees has grown from 137,895 to 147,562, which is an increase of 7.0%.
Table: Change in the number of Employees by Size of Business, since the Recession:
|Company Size||Q1 2018||Q1 2010||% Change|
|Fewer than 5 Employees||135,198||124,460||8.6%|
|More Than 1,000 Employees||367,411||280,594||30.9%|
The biggest percentage change in the average weekly wage has been in businesses with 500 to 999 employees. The average weekly wage in companies this size has grown from $839 to $1,177, which is an increase of 40.3%.
The smallest percentage change in the average weekly wage has been in businesses with 1,000 or more employees. The average weekly wage in companies this size has grown from $1,152 to $1,407, which is an increase of 22.1%.
Table: Change Average Weekly Wage by Size Since the Recession:
|Company Size||Q1 2018||Q1 2010||% Change|
|Fewer than 5 Employees||$1,162||$843||37.8%|
|More Than 1,000 Employees||$1,407||$1,152||22.1%|
This page, created and maintained by Kurt Tietjen, Founder of Stavera, High Peak Media & HomeGearWorks.com. Kurt Tietjen has spent the bulk of his career working with and using data to grow businesses. As the SVP of Operations at TheStreet and the head of Audience & Product at Purch, data helped us create products and content strategies to grow the businesses. My LinkedIn Profile is here.