Arizona's economy has been experiencing significant growth, particularly in the semiconductor industry, which has been bolstered by public incentives. However, this economic boom is overshadowed by rising costs that are concerning voters. According to a recent CBS News and YouGov poll, 82% of voters in Arizona consider the economy a major concern, reflecting widespread anxiety about inflation and the cost of living [ee6f0845].
Inflation in the Phoenix Metropolitan area peaked at 13% year-over-year in August 2022 but has since decreased to 2.3%. Despite this decline, many residents, including rancher Marc Hernandez, express frustration over persistent high prices, especially in housing and interest rates, which complicate family planning and financial stability [ee6f0845].
Arizona's unemployment rate stands at 3.5%, which is below the national average of 4.1%. This low unemployment rate is partly attributed to the positive impacts of the CHIPS and Science Act, which has been credited by Democrats for boosting the job market in the state. Former Rep. Lee Zeldin emphasized the economy as a top issue on the campaign trail, reflecting the political implications of economic conditions as the 2024 elections approach [ee6f0845].
The state's economy has shown resilience with a normalized labor market, steady job gains, and a projected growth rate that outpaces the national average. Recent data indicates that Arizona job growth was revised up to 2.6% in 2022 and 2023, above the national rate. However, the housing market remains stressed, with rising home prices and elevated mortgage interest rates posing challenges for many residents [306ddcf9].
While Arizona's economic conditions appear strong, the state's water issues and the ongoing challenges related to inflation and housing affordability continue to loom large. Experts believe that addressing these concerns is crucial for sustaining economic growth and ensuring that the benefits of this boom are felt by all Arizonans [aad5521d].