- 161,096 employers
- 2.83 million employees
- $997 average weekly wage
- The average weekly wage is 9.4% below the national average
- The cost of living is 2.3% below the national average
Government | Private Employment
As an employer in Arizona, you are most likely to be running a private company rather than a government agency. 98.3% of employers run private companies in the state, 1.3% higher than the national average. The remaining 1.7% of employers are government agencies: 0.5% of employers are federal agencies, 0.2% are state agencies and 1.0% are local government agencies. The chart below illustrates this breakout.
86.2% of employees work for a private company. This is 1.0% higher than the national average of 85.2%. Local government agencies employ 9.4% of the workers in the state, state government agencies employ 2.4% of the workers and the federal government employs 2.0%. The percentage of employees working for a government agency (13.8%) is 1.0% lower than the national average.
The average pay in the state is $997, which is 9.4% lower than the national average of $1,101. Arizona workers that are employed by private businesses earn $990 per week, 10.0% lower than the national average for private company employees. Employees of federal government agencies in Arizona earn $1,502 per week, a premium of 51.7% compared to what employees of private companies earn. The chart below illustrates the average weekly by type of employer.
The sector with the greatest number of businesses in the state is Professional services with 15.5% of the businesses in the state. Retail trade (9.9%) and Healthcare (9.8%) round out the top 3 sectors. The sector that employs the greatest number of workers is Healthcare which employs 15.5% of all workers, followed by Retail trade and Accommodation and food services which account for 13.4% and 11.6% of private company employees. The table below illustrates the number of businesses by sector:
|Professional and technical services||24,499||15.5%|
|Health care and social assistance||15,599||9.8%|
|Accommodation and food services||11,642||7.3%|
|Other services, except public administration||11,232||7.1%|
|Administrative and waste services||10,562||6.7%|
|Finance and insurance||9,235||5.8%|
|Real estate and rental and leasing||8,768||5.5%|
|Transportation and warehousing||3,477||2.2%|
|Arts, entertainment, and recreation||2,094||1.3%|
|Agriculture, forestry, fishing and hunting||1,106||0.7%|
|Management of companies and enterprises||972||0.6%|
|Mining, quarrying, and oil and gas extraction||230||0.1%|
The sector that employs the most workers in Arizona is Health Care and Social Assistance, which employs 376,530 workers, 15.5% of the workforce. The next 3 sectors are Retail Trade (326,697 workers), Accommodation and Food Services (281,430 workers) and Waste Services (248,191 workers).
|Health care and social assistance||376,530||15.5%|
|Accommodation and food services||281,430||11.6%|
|Administrative and waste services||248,191||10.2%|
|Finance and insurance||160,895||6.6%|
|Professional and technical services||153,271||6.3%|
|Transportation and warehousing||96,275||4.0%|
|Other services, except public administration||75,278||3.1%|
|Real estate and rental and leasing||53,698||2.2%|
|Arts, entertainment, and recreation||44,427||1.8%|
|Management of companies and enterprises||28,853||1.2%|
|Agriculture, forestry, fishing and hunting||25,634||1.1%|
|Mining, quarrying, and oil and gas extraction||13,027||0.5%|
The sector that pays the highest weekly wage is the Utilities sector, which pays its workers $2,075 per week. The sector that employs the most workers (see above), the Health care sector, pays $1,012 per week, 1.5% above the state average.
|Management of companies and enterprises||$1,734|
|Mining, quarrying, and oil and gas extraction||$1,621|
|Professional and technical services||$1,493|
|Finance and insurance||$1,472|
|Real estate and rental and leasing||$1,035|
|Health care and social assistance||$1,012|
|Transportation and warehousing||$969|
|Administrative and waste services||$768|
|Arts, entertainment, and recreation||$758|
|Other services, except public administration||$725|
|Agriculture, forestry, fishing and hunting||$651|
|Accommodation and food services||$428|
Like many states, there are more Restaurants than any other industry with over 8500 businesses. Wholesale Trade agents make up the 2nd largest industry at 4,776 businesses and Physicians offices at 4,434 businesses. Wholesale trade businesses employ few people at 2.7 employees per business but they do pay well above the state average at $2,125 per week.
Each broad sector is made up of specific industries. In Arizona the industry with the most businesses is Restaurants and other eating places (with 9,060 businesses employing 214,840 workers). The next two industries are Unclassified and Computer systems design and related services. Here are the industries with the most businesses in the state:
|Detailed Industry||# Biz||Emp/Biz|
|Restaurants and other eating places||9,060||23.7|
|Computer systems design and related services||5,327||6.8|
|Management consulting services||4,915||4.3|
|Offices of physicians||4,683||12.5|
|Offices of real estate agents and brokers||4,167||2.4|
Restaurants and other eating places is the industry that employs the most workers, employing a total of 214,840 people in 9,060 businesses. On average, these employees are paid $387, 61.2% less than the state average. There are 23.7 employees on average in each of these businesses. The next largest employing industry is General medical and surgical hospitals
|Detailed Industry||# Emp||Emp/Biz|
|Restaurants and other eating places||214,840||23.7|
|General medical and surgical hospitals||90,926||721.6|
|Offices of physicians||58,510||12.5|
|Supermarkets and other grocery stores||54,519||74.8|
|Professional employer organizations||48,678||105.8|
|Temporary help services||48,163||38.6|
The industry that pays the most (on an average weekly basis) is Commodity contracts dealing. There are 31 employees working in 15 businesses. The next best paying industries are Reinsurance carriers and Spectator sports.
|Detailed Industry||Wkly Wage|
|Commodity contracts dealing||$9,048|
|Commodity contracts brokerage||$2,723|
|Semiconductor and electronic component mfg.||$2,663|
|Other financial vehicles||$2,586|
The solopreneur company by far has the most businesses. 62.7% of all businesses employ 5 or fewer workers. All small businesses (fewer than 50) represent 94.7% of all businesses, barely below the national average of 95.6%. The breakout of businesses by # of employees is below.
Large companies are very large employers in Arizona, employing 15.2% of all workers, which is 4.2% higher than the national average. All large businesses (greater that 500 employees) employ 24.3% of all workers, also well above the national average of 17.4%. Small businesses of fewer than 50 employees, while there are a lot of them, they employ only 36.1% of workers, 7.7% lower than the national average of 43.8%.
The pay distribution in Arizona in one way is typical, but in another is completely atypical. The exception to the norm is that the smallest companies pay very well, at $1,162 on average per week. This is 19% higher than the national average for the smallest companies (5 or fewer). Mid and large companies pay an average of 23% below the national average, but with the exception of the solopreneur category pays the most in the state.
This page was created and is maintained by Kurt Tietjen, Founder of Stavera, High Peak Media & HomeGearWorks.com. Kurt is an executive, data scientist and software engineer who holds an MBA in Management Information Systems. In 2010, he partnered with scientists at Northwestern University to launch The Street Wire. This was one of the first mainstream uses of what would become “Narrative Science”, an artificial intelligence platform specializing in natural language generation. You can contact Kurt on LinkedIn here.