Tucson MSA November 2025 Summary

By Delaney O’Kray-Murphy, EBRC research economist

Exhibit 1 presents current Tucson MSA economic indicators.

In August, the non-seasonally adjusted civilian labor force in the Tucson MSA (Pima County) grew 1.4% year over year to 494,597. This continues a steady upward trend, with year-over-year increases recorded each month so far in 2025. In June, the labor force rose 1.9% to 498,709, followed by a 1.2% gain in July to 499,751.

In the Tucson MSA, the non-seasonally adjusted unemployment rate rose 0.7 percentage points over the year to 4.8% in August. Every month of 2025 has recorded year-over-year increases in unemployment. March saw the largest gain, up 1.1 points to 4.1%, followed by a 0.9-point increase in May to 4.2%, and the most recent 0.7-point rise in August. Statewide, the unemployment rate also increased 0.6 percentage points over the year, matching Tucson’s August rate of 4.8%.

Seasonally adjusted nonfarm employment in the Tucson MSA declined slightly in August, falling 0.3% over the month to 397,500. Employment also fell in May by 0.5% and June by 0.1%, but rebounded slightly in July by 0.2% to 398,600.

Non-seasonally adjusted nonfarm employment in the Tucson MSA showed year-over-year growth in each of the last three months. Employment rose 0.3% in June to 389,100, followed by 0.8% in July to 388,700 and 1.1% in August to 392,300.

Among August’s industry-level data, the strongest year-over-year gain in the Tucson MSA was in Mining and Logging, which rose 11.5% to 2,900 jobs. Private Education and Health Services followed with a 5.9% increase, reaching 75,100 jobs. Other notable gains occurred in Financial Activities (5.3%), Leisure and Hospitality (4.7%), and Other Services (2.0%).

On the downside, the largest year-over-year decline in the Tucson MSA was in Manufacturing, with employment falling 2.8% to 27,900 jobs. Construction followed, down 2.4% to 20,400. Additional losses occurred in Information (2.0%), Professional and Business Services (-1.2%), Government (-1.1%), and Trade, Transportation, and Utilities (-1.0%).

Retail sales excluding food and gasoline in the Tucson MSA rose 0.2% year over year in August, reaching $1.0 billion. Restaurant and bar sales saw stronger growth, increasing 4.8% to $221.8 million. Gasoline sales declined in both July and August but reversed course in September, rising 12.2% to $122.5 million. Amusement sales posted moderate gains in August, up 3.6% to $9.9 million, while hotel and motel sales fell 10.2% to $31.5 million.

Building permits in the Tucson MSA have declined sharply in recent months for both total and single-family units. Total permits fell 53.3% year-over-year in July to 306 units and 44.3% in August to 257. Single-family permits followed a similar pattern, dropping 29.1% in July to 256 and 32.8% in August to 201.

The Tucson MSA’s housing market has softened in recent months, with units sold and prices reflecting the slowdown in building permits. Units sold declined in July and August before rising 2.4% in September to 1,084. Meanwhile, the median home sale price fell in each of the three months, most recently slipping 0.9% to $356,750 in September.

Exhibit 1: Tucson MSA Monthly Economic Indicators