Arizona's unemployment rate declined to 4.3% in April, down from 4.4% posted in March, according to a survey released Thursday by the Arizona Department of Economic Security. The rates in Phoenix and Tucson both went up during April by one-tenth of a percentage point. In Phoenix, it is 3.5%, while in Tucson it's 3.4%. The national jobless rate is 4.5%, up from 4.3% in March.

"The last time Arizona's jobless rate was this high was in 1999, a year that experienced a 12-month average rate of 4.4%," says Dan Anderson, head of DES research administration.

Anderson believes that there may be some overbuilding in the commercial development sector that could lead to greater job loss in the near future. "Some analysts have determined that the robust commercial construction activity has left the metro-Phoenix region with excess commercial space, suggesting that commercial construction activity and jobs might be rapidly curtailed," he says.

Some 4,900 jobs were added in Arizona during the month, but overall just 2,000 jobs had been added to the rolls, with layoffs and terminations totaling 1,900 during April.Manufacturing jobs is one of the industries shedding the most jobs. "Unlike manufacturing, Arizona's construction industry continues to be resilient in this economy," Anderson says. "Arizona's construction industry had added 600 more jobs in April. Basically, growth in special trades and heavy construction sectors largely offset losses in the general construction sector."

The robust residential housing development continues to fuel the construction industry in the state, although some slowing has been seen. The construction industry has 7,400 more jobs in Arizona than it did a year ago, an annualized growth rate of 4.7%.

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Analyst Cautions About Overbuilding Impact on Jobs

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