Contribution from Growth Industries
By Valorie Rice and Marshall J. Vest
Since Arizona is a rapidly growing state, a large portion of economic activity is related to growth. Included are workers in the construction industry, supplier industries (such as landscaping services, architectural engineering), real estate finance (title companies, mortgage brokers, appraisers), retail stores (furniture, home improvement centers), manufacturing (concrete, stone, structural metals, HVAC), property managers, realtors and brokers, and more.
All totaled, Arizona’s growth industries accounted for a little over 300,000 jobs in 2011, down almost 200,000 from peak employment of 2006. As a percentage of total employment, the growth industry accounts for about 15%, or one in every seven workers. Back in 2006, the percentage was over 22%, or more than one in five (Exhibit 1).
When the economy starts growing again, the rate of growth will receive a big boost as jobs in the growth industry are filled.
Exhibit 1: Employment in Growth Industries is Falling