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Arizona Job Growth Has Seen Recent Improvement - BMO Economics

Arizona Job Growth Has Seen Recent Improvement - BMO Economics
Depressed Housing Market Still Holding Down Local Economy

  • Labor Market has Improved in Four Straight Quarters
  • Construction Sector Still Depressed
  • Home Prices Continue Their Decline

PHOENIX (Nov. 17, 2011) – The Arizona labor market has begun to show some signs of improvement in recent months, although overall growth remains modest and home prices continue to fall, according to the State Monitor report released today by BMO Capital Markets Economics.

The Arizona labor market has picked up recently, with four straight quarterly gains, lifting employment 1.7 percent above year-ago levels in the third quarter. Still, payrolls are a deep 10 percent below pre-recession levels. Manufacturing and construction led the pack with more than a 3 percent increase year-over-year, but after peaking at more than 9 percent of nonfarm payrolls at the height of the 2006 boom, construction now makes up just 4.6 percent of total employment.

According to Steve Johnson, President, Arizona Region of M&I, a part of BMO Financial Group, "We are invested in our clients' success, and we are continuing to help them navigate this uncertain economy. We provide an unparalleled combination of sector expertise, local knowledge and mid-market focus, all designed to help drive our clients growth."

The Arizona economy continues to grapple with a depressed housing market. Home sales are continuing to chip away at the housing supply, up 9.2 percent year-over-year in the second quarter. Months' supply in Phoenix dropped to levels essentially similar to before the downturn – three months in quarter two. Construction activity is extremely quiet, with little sign of momentum.

"The pace of price declines does not appear to be mellowing. Housing starts have averaged fewer than 13,000 through August and are not gaining traction. This compares to peak activity of about 85,000 in 2006," said Robert Kavcic, Economist, BMO Capital Markets.

The full State Monitor report can be downloaded at bmocm.com/economics.

About BMO Harris Bank
Based in Chicago, BMO Harris Bank has approximately 700 branches and approximately 1,350 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Arizona and Florida. Member FDIC. BMO Harris Bank is part of BMO Financial Group, a North American financial institution with 1,600 branches, a retail deposit base of approximately $180 billion.

BMO Harris Bank is a trade name used by BMO Harris Bank N.A. Banking deposit and loan products and services are provided by BMO Harris Bank N.A. Member FDIC. Brokerage products are offered through Harris Investor Services, Inc. (HIS), a registered broker/dealer, member FINRA/SIPC, and SEC-registered investment advisor. Insurance products are offered through Harris Bancorp Insurance Services, Inc. (HBIS). Investment banking services are provided by BMO Capital Markets Corp. (BMOCMC) and BMO Capital Markets GKST, Inc. (GKST), a Municipal Bond Dealer and member FINRA and SIPC. Financial planning and investment advisory services are provided by Sullivan, Bruy ette, Speros & Blayney, Inc. (Harris SBSB), an SEC registered investment advisor. Family Office Services are provided by Harris myCFO, Inc. Investment advisory services are offered by Harris myCFO Investment Advisory Services LLC (Harris myCFO), an SEC-registered investment advisor and wholly-owned subsidiary of Harris myCFO, Inc. Stoker Ostler Wealth Advisors (Stoker Ostler) is an SEC-registered investment advisor. Investment advisory services to institutional clients are provided by Harris Investment Management (HIM) or its wholly-owned subsidiary HIM Monegy (Monegy), SEC-registered investment advisors. Products offered by HIS, HBIS, BMOCM, Harris SBSB, Harris myCFO, Stoker Ostler, HIM, and Monegy, which are affiliated companies and wholly owned subsidiaries of BMO Financial Corp.,:Are not insured by the FDIC or any Federal Government Agency, not a deposit of or guaranteed by any Bank or Bank Affiliate, may lose value. The purchase of insurance or an annuity is not a condition to any bank loan or service. Not all products and services are offered in every state and/or location.




For further information:

Carey Allen (480) 558-6383 carey.allen@micorp.com