Brookings Institute Says Job, Economic Growth Sliding
According to the latest analysis of job, housing, and output data in the Brookings Institution’s Metro Report, the Phoenix area’s economy is lagging behind other cities in the Mountain West region. The Arizona Republic reported that the survey, released last week, shows that despite a strong Q4 2014, the city’s rate of job growth slowed in Q1 2015 to 0.8%. However, this was still about the national average of 0.5%. While the city’s economy grew in Q1 20215, it “trailed the usual leaders,” the Republic noted, posting “respectable but unspectacular economic growth.” Phoenix was eighth out of the 10 cities in the Mountain West in terms of overall performance in Q1 2015. However, Phoenix was fifth in terms of growth. Brookings Senior Policy Analyst and report co-author Kenan Fikri said, “There’s not bad news, but there’s reason not to pop the champagne yet.” Fikri continued, “On many metrics, Phoenix is nearly recovered from the recession. On employment, in the next two to four quarters there will be as many or more jobs in Phoenix as there were at the peak in 2007, which is a major accomplishment. … The reason to be concerned is that it’s unclear if the lessons of the Great Recession have been learned by the metro area.”
What This Means For Small Businesses
Phoenix-area small business owners need indicators that the city’s business climate is friendly. Signs of a strong economy and low unemployment can help shed light on the city’s business climate. This latest report offers mixed news, as it shows the city’s recovery since the recession is continuing. However, there may be a way to go before the city fully rebounds.
Additional Reading
NFIB previously covered Phoenix’s economy.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
