Phoenix jobless rate holds steady in heat

By Riccardo A. Davis

July 21, 2000 Web posted at: 10:38 AM EDT (1438 GMT)

PHOENIX, Arizona (The Arizona Republic Online) -- Arizona's unemployment rate was unchanged in June as job gains were offset by the seasonal warm weather slump in hiring.

The state's jobless rate was 3.8 percent last month, and Phoenix's rate was also unchanged from May, at 2.6 percent, just off the record low of 2.5 percent. Tucson's unemployment rate declined one-tenth of 1 percent, to 2.8 percent.

The U.S. unemployment rate also fell one-tenth of 1 percent in June, to 4 percent.

Although job creation in Arizona continues to be strong, seasonal hiring declined at retailers, restaurants and bars as students, residents and snowbirds fled the heat.

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"It is the summer doldrums in Arizona, and we can expect this up until September," said Dan Anderson, research administrator for the Arizona Department of Economic Security.

In all, a net 30,900 jobs evaporated in June. As expected, the majority were government jobs - teachers who began their summer vacations. Some of the decline was attributed to Census 2000 workers whose temporary assignment counting Arizona residents was completed.

The U.S. Census Bureau figures released earlier this week show Maricopa County ranked fourth in the nation for job growth between 1997-98, adding 54,275 jobs during the period.

Last month, manufacturing, transportation and construction showed strong growth, creating nearly 3,000 jobs. Anderson noted that construction is still expanding despite rising interest rates. Over the past year, the Federal Reserve has raised interest rates six times to cool the overheated economy.

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