PHOENIX, AZ--(Marketwired - Oct 23, 2014) -
- Economic diversity has helped the city recover three-quarters of jobs lost during the recession
- Population growth firm, above national average
- 85,000 new jobs expected by 2016
Phoenix and the broader Arizona economy are expanding again after an extremely difficult recession, although growth will be more modest than the boom times of a decade ago, according to a report released today by BMO Economics.
The labor market is a bright spot, with the city remaining consistent in its job growth performance. "The city has been a consistent job growth outperformer so far during the recovery and, after a soft patch earlier in the year, growth has accelerated again," said Robert Kavcic, Senior Economist, BMO Capital Markets. "If the recent growth clip persists -- and we believe that it should -- the Phoenix economy should be able to add roughly 85,000 new jobs by the end of 2016."
"It's encouraging that the economic health of Arizona, and Phoenix in particular, continues to improve," said Steve Zandpour, newly-appointed Arizona Regional President, BMO Harris Bank. "It's nice to see construction activity again. Projects that had been on hold for quite a while have broken ground, adding another positive stimulus to the community."
The Valley's economic diversity will help it continue to recover at a solid pace. "Phoenix boasts a diverse economy with exposure to a wide range of industries in high-tech manufacturing, construction, finance and professional services," stated Kavcic. "Of the 250,000 jobs lost during the recession, nearly three-quarters of them have recovered."
The finance and insurance sector employs more than 125,000 people -- a record high, in the city. The fast-growing biotechnology sector also has a strong presence in the region, with two new structures recently approved at the Phoenix Biomedical Campus, including a $136 million investment by the University of Arizona.
On the housing side, the foreclosure rate across Arizona has tumbled to below 1 percent -- now among the lowest in America -- while higher home prices have reduced the share of mortgages in a negative equity position. "Fundamentals support a continued, albeit more modest, housing market recovery in the city," said Mr. Kavcic.
To view a full copy of the report, visit www.bmocm.com/economics.
About BMO Harris Bank
BMO Harris Bank provides a broad range of personal banking products and solutions through more than 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. For more information about BMO Harris Bank, go to the company fact sheet. Banking products and services are provided by BMO Harris Bank N.A. and are subject to bank or credit approval. BMO Harris Bank® is a trade name used by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with approximately 1,600 branches, and CDN $586 billion in assets (as of July 31, 2014).