Improvements in blue-collar industries account for a significant share of Phoenix economic growth in 2011, despite choppy early year hiring. Total metro employment grew by 0.9%, or 14,900 positions. Manual-trade payrolls, in contrast, expanded by a healthy-1.1% year to date with the addition of 3,800 workers. The Valley’s manufacturing sector notched the most hires, adding 2,500 employees and offsetting the combined loss of 700 construction and transportation and utilities personnel through the second quarter. Moreover, major expansions by companies such as Federal Express, First Solar and Easy Energy Systems Inc. will boost the economy and leasing in the near term. Through the extended outlook, sales tax legislation may push more companies like Amazon to relocate from California to Arizona, further supporting industrial space demand. Although international and domestic concerns could dampen growth in the second half, the economic recovery is expected to gain momentum. Metr owide staffing levels will increase by a projected 39,000 positions, or 2.3%, in 2011, while blue-collar industries will add 12,500 workers, a 3.7% increase. National payrolls will rise by 1.65 million positions, or 1.3%
Phoenix, AX - July 29, 2011 - (RealEstateRama) -- Although office net absorption in Phoenix remains negative year to date, the local economic recovery gained traction in the second quarter. Businesses added 14,900 positions locally, a 0.9% staffing boost, in the past six months, compared to a nationwide increase of 757,000 jobs, or 0.6%. Improvements have been greatest in the Valley’s healthcare and leisure and hospitality sectors, with white-collar industries dampening overall growth through the first quarter of 2011. Nevertheless, Phoenix white-collar employers rebounded in the most recent quarter. Local office-using employment sectors augmented payrolls by an estimated 2,800 workers, a 0.7% quarterly gain, mirroring the healthy white-collar improvements that have been recorded nationally. Recent hiring announcements from companies including Safelite, Humana, Yelp and Easy Energy Systems Inc. support projections for a sturdy, albeit late, white-collar recovery through year end, helping to stabilize space demand. U.S. emp loyment will increase by a projected 1.65 million jobs in 2011, including to 39,000 positions in Phoenix, a 2.3% marketwide gain. Local white-collar sectors are anticipated to hire 5,600 workers, growth of 1.3%.