ÃÛèÖÖ±²¥â€™s jobless rate shrank by close to 45% last month.
At a press conference Thursday, Gov. Doug Ducey called the announcement of a 5.9% seasonally adjusted employment rate “a really good sign that people are getting back to work.â€
But there may be less there than meets the eye.
A good portion of the drop in the seasonally adjusted unemployment rate from 10.7% in July has nothing to do with a bunch of ÃÛèÖÖ±²¥ns suddenly finding work. It’s because some just gave up.
A lot of them, in fact.
The state Office of Economic Opportunity reports the labor force declined by more than 145,000. By contrast, the overall employment levels — the number of folks actually working — went up by just 32,109.
Doug Walls, the agency’s director of research administration, said that huge drop is unusual.
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“On a monthly basis, it’s common to see the labor force fluctuate a couple of thousand or in the tens of thousands,†he said. Walls called that 145,000 drop “the largest decline on record ... back to 1990.â€
In fact, Walls said, the state’s labor force participation in August — the number of people working or looking for work as a percentage of the total adult population — dropped to just 58.5%. That’s the lowest rate on record going back to 1976.
Ducey dismissed all that as irrelevant, saying he doesn’t believe that having fewer people looking for jobs — or not — affects the unemployment rate.
“That’s not how those numbers work,†the governor said.
But the figure is a simple question of math.
Surveyors ask people if they’re working and, if not, are they looking. Those two figures combined create the labor force, which, as of August, was 3,420,111.
Into that is divided the number of people who say they were looking for work. In August, that figure was 202,449 versus 380,231 in July.
So for August, the number looking number divided into the labor force creates a 5.9% jobless rate.
By contrast, the labor force for July was 3,565,784 and the number looking for work was 380,231 — the 10.7% figure for that month.
So where did those people go?
“There are a lot of different reasons why an individual might exit the labor force,†Walls said. That can include not just retiring but loss of a job and waiting for it to return.
“We’re not able to dive into those and break those out at this time,†Walls said, with no current data on people whom the federal government classifies as “discouraged workers.â€
The governor conceded that could be a factor.
“It’s not unusual in an economy, especially when you have some of the challenges that we’ve had across the country, that people who are displaced get discouraged,†Ducey said. But he insisted that is not a function of a weak economy.
“They didn’t disappear,†he said. “They haven’t yet re-engaged. They need to know that there are positions available for them.â€
The state did gain jobs last month. And there were some particular signs of life in the retail sector as Walls said people are out shopping again, particularly for durable goods, generally defined as items that last more than three years.
But other figures from Thursday’s report also suggests continued weakness in ÃÛèÖÖ±²¥â€™s labor market despite that 5.9% jobless rate.
There was an overall gain of 79,200 jobs from July to August. But 44,600 of those were in state and local education — usually folks not on contract, like bus drivers, cafeteria staff and custodians — with re-employment typical at this time of the year. And an additional 6,900 of the jobs gained were at private schools, largely postsecondary education institutions, also typical for August.
Factor those out and it puts the month-over-month job growth in the private sector at just 23,500. And it still leave private sector employment in ÃÛèÖÖ±²¥ 94,700 less than the same time a year earlier.
If you’ve been laid off due to the coronavirus pandemic and are on the job hunt, you’re probably wondering how to explain it on your resume.
Photos for May 29: ÃÛèÖÖ±²¥ gets by during Coronavirus Pandemic
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

The iconic Casa Molina bull and matador statue both sport masks on the first full week of the loosening of COVID19 restrictions, May 23, 2020, ÃÛèÖÖ±²¥, Ariz. The bull previously had a mask on the testicles.
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

Michelle Leon Cordova, right, mother, and her son Sahuarita High School senior Lino Cordova, whom is fighting cancer, wave at staff members from Diamonds Children Center, friends and the Marana Police Department during a car parade, celebrating Lino's graduation, outside of his home on May 13, 2020 in Sahuarita, Ariz. Cordova stood on the sidewalk while the team from Diamond Children Center, friends and the Marana police department gave Cordova a graduation gar parade. Cordova was given a gift basket with his favorite snacks, gift cards as well as other items he enjoys. The car parade, also, celebrated another graduating senior fighting cancer from Empire High School, Noah Nieto. Nieto, also, received a gift basket with snacks, gift cards and other items Lino enjoys.
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

Michelle Leon Cordova, right, mother, brings celebration balloons to a car after staff members from Diamonds Children Center, friends and the Marana Police Department celebrate Sahuarita High School senior Lino Cordova, whom is fighting cancer, graduation with a car parade outside of his home on May 13, 2020 in Sahuarita, Ariz. Cordova stood on the sidewalk while the team from Diamond Children Center, friends and the Marana police department gave Cordova a graduation gar parade. Cordova was given a gift basket with his favorite snacks, gift cards as well as other items he enjoys. The car parade, also, celebrated another graduating senior fighting cancer from Empire High School, Noah Nieto. Nieto, also, received a gift basket with snacks, gift cards and other items Lino enjoys.
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

Personnel from ÃÛèÖÖ±²¥ Medical Center line the heliport to watch A-10's from Davis-Monthan Air Force Base's 355th Wing and F-16's from the ÃÛèÖÖ±²¥ Air National Guard's 162nd Wing make a pass over the facility, one leg of an area wide community flyover, May 14, 2020, ÃÛèÖÖ±²¥, Ariz.
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

Nancy Celix-Campos, right, a respitory therapist at ÃÛèÖÖ±²¥ Medical Center, watches the military flyover with her daughters, Giana, 12, and Jazmyn, 8, from Sentinel Peak on May 14, 2020. Two F-16 Fighting Falcons from ÃÛèÖÖ±²¥ Air National GuardÕs 162nd Wing and two A-10 Thunderbolt II's from the 355th Wing, assigned to Davis-Monthan Air Force Base, fly over ÃÛèÖÖ±²¥ area hospitals to honor healthcare personnel and first responders as they are some of the frontline workers dealing with the coronavirus disease (COVID-19) head on. "It's been an exhausting two to three months," says Campos, "it's pretty cool, I like how they're going by each hospital."
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

Two F-16 Fighting Falcons from ÃÛèÖÖ±²¥ Air National Guard’s 162nd Wing and two A-10 Thunderbolt II's from the 355th Wing, assigned to Davis-Monthan Air Force Base, fly over Northwest Medical Center north of ÃÛèÖÖ±²¥ on May 14, 2020.
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

A letter carrier portrait on the Ok Market building, located in the Armory Park neighborhood, is adorned with a face mask on May 18, 2020.
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

Rosemary Garcia waits for a family member outside of a store at Park Place Mall, 5870 E. Broadway Blvd., in ÃÛèÖÖ±²¥, Ariz. on May 19, 2020. Malls reopened today under CDC guidelines and Gov. Ducey's new rules for businesses due to the Coronavirus pandemic. Park Place Mall has signs throughout the mall reminding customers to keep a six feet distance as well as hand sanitizer stations near each entrance. About half of the tables in the food court have been removed to allow for social distances as well as less than half of the stores have opened with new guidelines. Of the stores open, only 10 customers are allowed to shop in each store at a time.
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

Pat Schlote steams clothing before it is put on the sales floor at the Golden Goose Thrift Shop in Catalina, Ariz., on May 21, 2020.
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

Ada Contreras, teaching assistant, looks through containers while reorganizing toys at Herencia Guadalupana Lab School, 6740 S. in ÃÛèÖÖ±²¥, Ariz. on May 21, 2020. As Child care centers begin to re-open when they are ready, Herencia Guadalupana Lab School is reorganizing and cleaning everything in the facility before re-opening on June 2. To allow for social distancing and decrease the amount of items children touch, Herencia Guadalupana Lab School has sheds where items will go as well as placing items in containers organized by category.
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

Jen Martinez, right, softball coach, teaches Skylar Reilly about hitting during a session at Centerfield Baseball Academy, 5120 S. Julian Dr., in ÃÛèÖÖ±²¥, Ariz. on May 21, 2020. After re-opening on Monday, Centerfield Baseball Academy has implemented new policies in response to the Coronavirus Pandemic such as wearing masks, cleaning, signage, hand sanitizer and limiting the amount of people inside the facility.
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

Karl Bosma, left, and George Cantua, with facilities and maintenance, lay down stickers to mark six-foot separation distance around one of the baggage carousels, part of the efforts at ÃÛèÖÖ±²¥ International Airport to work within the restrictions of COVID19, May 22, 2020, ÃÛèÖÖ±²¥, Ariz.
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

A lone passenger waits for a flight near one of the shuttered restaurants in the B Gates before Memorial Day at ÃÛèÖÖ±²¥ International Airport on May 22, 2020.
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

Drew Cooper on the stage in the St. Philip's Plaza courtyard, May 22, 2020, ÃÛèÖÖ±²¥, Ariz., where live music is back on the schedule.
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

Many people visit Tumamoc Hill during the first day of Tumamoc's re-opening in ÃÛèÖÖ±²¥, Ariz. on May 25, 2020. After being closed due to the Coronavirus pandemic, Tumamoc Hill re-opened with some modifications. There are hand sanitizer stations throughout the hike to the top as well as arrows, spaced 10-ft apart, lined up and down the hill. Some runners, hikers and walkers are also wearing masks during their hike. "The steps we are taking aim to provide our community with needed exercise, connection to our beautiful desert and a sense of comfort in such a trying time, while balancing the fact that gathering as a community endangers each of us and our loved ones. This is an unprecedented challenge that we are taking extremely seriously," said Benjamin T. Wilder, director of Tumamoc Hill. Visitors are also asked to limit their group to three people and to not touch the gate at the top of the hill- a tradition for some who make it to the top. "This is a time when we need to establish new traditions and adapt in a creative manner that embraces empathy, unity, care and patience," Wilder said.
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

Pen Macias, artist, works on part 2 of a mural for a client on E. Broadway Rd., between S. Columbus Blvd. and S. Alvernon Way, in ÃÛèÖÖ±²¥, Ariz. on May 25, 2020. Macias, known as The Desert Pen, has been working on her clients mural for the past three months. "It's the one thing I love, I have a passion for and the only thing I could be happy doing," said Macias. The mural represents her client, a single mother of four who works in the health care field. One half of the mural is dedicated to the connection between mothers and their children. The other half is dedicated to the connection between nurses and patients. The client wanted some positivity in the mural to show how nurses give a piece of themselves to their patients hence the puzzle pieces in the nurse and the patients, said Macias.
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

Christina Cortinas, posing at her home, May 28, 2020, ÃÛèÖÖ±²¥, Ariz., with a photo of her and her mother, Catherine Rodriguez, in San Diego, 1991. Rodriguez is currently in assisted living and fighting COVID19. Cortinas hasn't seen her mother in months, the longest such span in her life.
ÃÛèÖÖ±²¥ gets by during coronavirus pandemic

Ruben Lopez looks through handouts while attending a Eviction Resource Fair with his family outside the Pima County Justice Court.
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