Labor Force Participation Rate Report for Southern Arizona Cities, Towns, and Census-Designated Places

Labor force participation rates varied substantially across Southern Arizona in 2023. This article explores 41 of the largest communities within Cochise, Pima, Pinal, Greenlee, Graham, Santa Cruz, and Yuma counties. Due to the significance of mining in Greenlee County, three nearby communities in New Mexico are also included. Hereafter, when discussing multiple cities, towns, or census-designated places (CDPs), the general term communities will be used.

In 2023, the average labor force participation rate for individuals aged 16 years and older for the 41 communities tracked on the MAP was 53.7%, one percentage point higher than in 2018. At 23.0%, the town of Florence had the lowest labor force participation rate, while the Morenci CDP reported the highest rate at 85.2%. Of the 41 communities tracked on the MAP, 16 followed an upward trend between 2000 and 2023. Among those 16 communities, the Ajo CDP reported the largest increase in the labor force participation rate, rising 13.5 percentage points since 2000 to 49.1% in 2023. The city of Eloy and the Picture Rocks CDP both experienced declines, with decreases of 17.7 and 24.3 percentage points, respectively, between 2000 and 2023 (Figure 1).

Figure 1: Labor Force Participation Rate for Adults 16+ (2023)

Why is it important?

The labor force participation rate, which includes both the employed and the unemployed who are actively seeking employment, is an important gauge of the economy's health and potential output. As the economy expands, more individuals are encouraged to enter the labor force. However, the demographics of a region can significantly impact this measure. For example, a population with a higher percentage of adults in their prime working years typically will have a higher labor force participation rate and the potential for higher economic growth. Holding these demographic factors constant, a higher labor force participation rate indicates that workers believe businesses are hiring for jobs that are worth their time and effort, valuable information for assessing a region's labor market.

The labor force participation rates for those 16 years and older vary significantly by ethnicity across the Southern Arizona communities. The town of Marana reported the highest labor force participation rate for Hispanics at 77.1%, while the Morenci CDP had the highest rate at 79.2% for White, non-Hispanic individuals. On average, Hispanics in Southern Arizona communities had an 11.7 percentage point higher labor force participation rate than White, non-Hispanic individuals. This gap is significantly larger than the national average difference of 6.4 percentage points, indicating that the disparity between ethnic groups in labor force participation is more pronounced in Southern Arizona than nationwide. Notable differences between Hispanic and White, non-Hispanic populations exist in several communities, including the city of Douglas and the Rio Rico CDP, where the gaps favoring Hispanics were 29.2 and 23.8 percentage points, respectively. Figure 2 displays the labor force participation by ethnicity for Southern Arizona communities.

Figure 2: Labor force Participation Rate by Race & Ethnicity  (2023)

The prime working-age (25-54) make up the majority of the labor force. Many individuals under 25 are still in school, and those over 54 may be retired. Therefore, we will explore the overall labor force participation rate for the prime working age and break it down by gender.

The labor force participation rates varied significantly by gender across Southern Arizona communities (Figure 3). Among men aged 25–54, the town of Clifton had the highest labor force participation rate at 96.9%, surpassing both the state average (86.2%) and the national average (87.7%). This trend was also evident in other communities, such as Sahuarita and Miami (96.3% and 92.8%, respectively), as well as the Vail and Catalina CDPs (94.1% and 92.5%, respectively). For women aged 25-54, the town of Marana had the highest labor force participation rate (84.5%), outpacing the state (76.0%) and the U.S. (78.5%). The town of Florence showed the largest female–male differential, with women surpassing men by 47.9 percentage points. Conversely, the town of Clifton had the highest male–female differential, with men surpassing women by 30.8 percentage points.

Figure 3: Labor Force Participation Rate by Gender (25-54)  (2023)

The U.S. economy experienced a long-term increase in the labor force participation rate, driven by a rise in the percentage of women entering the workforce during the second half of the 20th century. This trend continued from 2000 through 2023 as the national rate among prime working-age adults (25-54) rose from 79.6% to 83.1%. In 2023, the town of Marana posted the highest labor force participation at 87.8% among adults in their prime working years (ages 25-54). That was 6.6 percentage points higher than the state’s rate of 81.2% and 4.7 percentage points higher than the U.S. rate of 83.1%.

In 2023, thirteen Southern Arizona municipalities outperformed the U.S. labor force participation rate for prime working age. The town of Marana ranked first, followed by the town of Miami (87.7%) and the Vail CDP (87.3%) in second and third place, respectively. The town of Miami posted the largest increase in the prime working-age labor force participation rate between 2000 and 2023, when compared to the 41 Southern Arizona communities. The rate increased from 69.3% in 2000 to 87.7% in 2023, a 18.4 percentage point rise. Communities with a high percentage of the population in the prime working age (25-54) tend to have higher labor force participation rates. Figure 4 shows the labor force participation rate for the prime working age for the Southern Arizona communities.

Figure 4: Labor Force Participation Rate for the Prime Working Age (25-54)  (2023)

How is it measured?

The labor force participation rate is calculated by dividing the total number of people in the labor force by the total population. The labor force includes both the employed and the unemployed who are actively seeking work. Data for 2009, 2018, and 2023 are from the American Community Survey (ACS) five-year estimates, provided by the U.S. Census Bureau. Data for 2000 are from the U.S. Census 2000 SF3 sample. The ACS is a nationwide rolling sample survey that produces one-year and five-year estimates on demographic, social, housing, and economic measures. Note that the ACS five-year estimates are produced over a five-year time period and can only be compared to non-overlapping five-year estimates (for example, 2005-2009 and 2010-2014).