STATE ECONOMIC PROFILE
Arizona Economic Overview
$445.0b
GROSS STATE PRODUCT
Growth Rate 2020-25
State Growth Rank
4.0%
7
7,680,315
POPULATION
Growth Rate 2020-25
State Growth Rank
1.3%
8
709,230
BUSINESSES
Growth Rate 2020-25
State Growth Rank
4.0%
6
Overview of the Arizona Economy
In 2025, the state of Arizona has a population of 7,680,315, having grown an annualized 1.3% over the five years to 2025, which ranks it 8th out of all 50 US states by growth rate. Arizona's gross state product (GSP) in 2025 reached $445.0b, with growth of 4.0% over the 5 years to 2025. Businesses in Arizona employed a total of 3,651,354 people in 2025, with average annual employment growth over the past five years of 3.2%. The top three sectors by total employment are Real Estate and Rental and Leasing, Healthcare and Social Assistance, Manufacturing, while the unemployment rate across the state in 2025 was 4.5%.
What is Arizona's Gross Domestic Product (GDP)?
In 2025, Arizona's GDP reached $445.0b, representing an increase of 4.0% from 2024. Arizona's GDP has grown at an annualized rate of 3.0% over the five years to 2025. Moreover, Arizona's trailing five-year GDP growth ranks it 7th out of all 50 US states.
State GDP, or Gross State Product, is a measurement of a state's output, or the sum of value added from all industries in the state. It is a common indicator used to track the health of a state's economy.
You can track trends in Arizona's GDP, and compare them to the national average, using the chart below.
STATE ECONOMIC PROFILE
Arizona Industry Trends
What are Arizona's Largest Industries by Revenue?
The largest industries by revenue in Arizona are Third-Party Administrators & Insurance Claims Adjusters, New Car Dealers and Property, Casualty and Direct Insurance, which generated $32.3b, $30.0b and $29.6b in 2025.
STATE ECONOMIC PROFILE
Top Companies in Arizona
Top 10 Companies Headquartered in Arizona by Employment
The largest companies by employment in Arizona are State of Arizona, Walmart and Banner Health, which employed 40,240, 36,843 and 28,310 people in 2025.
STATE ECONOMIC PROFILE
Arizona Sector Statistics
In Arizona, certain sectors drive a higher share of state GDP and employ more workers than others. However, simply looking at raw numbers doesn't always tell the whole story. Factoring in the current year growth percentage, in addition to the annualized growth percentage over the past five years, will give you a deeper understanding of the economic situation.
What is Arizona's GDP by Sector?
The Real Estate and Rental and Leasing, Healthcare and Social Assistance and Manufacturing sectors contributed the most to Arizona's GDP in 2025, representing a combined 40.5% of state GDP.
GDP trends by sector are an important indicator of which sectors are contributing the most value-add to the state's economy, in addition to how the state economy is evolving over time.
What is Arizona's Employment by Sector?
The Retail Trade, Healthcare and Social Assistance and Administration, Business Support and Waste Management Services sectors contributed the most to employment in Arizona in 2025, representing a combined 36.6% of state employment.
Employment trends by sector are an important indicator of which sectors are growing or contracting most rapidly relative to the state economy as a whole.
STATE ECONOMIC PROFILE
Arizona Employment Trends
3.7m
EMPLOYMENT
Growth Rate 2020-25
State Growth Rank
2.1%
46
4.5%
UNEMPLOYMENT
Growth Rate 2020-25
State Growth Rank
-10.5%
44
What Employment Trends are Impacting Arizona?
The state of Arizona employs 3,651,354 people in 2025, which ranks it 15th out of all 50 US states. Employment in Arizona has grown at an annualized rate of 2.1% over the five years to 2025, overperforming the national average of 2.0%. Major sectors by employment in Arizona include Retail Trade, Healthcare and Social Assistance and Administration, Business Support and Waste Management Services, which employed 497,369, 481,794 and 358,135 people in 2025, respectively. Arizona's unemployment rate is 4.5% in 2025, which ranks it 35th out of 50 states. Arizona's unemployment rate has trended downwards at a rate of -10.5% over the five years to 2025, overperforming the US economy as a whole. Employment trends indicate the degree of tightness or slack in labor markets, in addition to the overall strength of an economy. Faster employment growth typically indicates a strong and growing economy, while lower unemployment tends to imply tightness in labor markets.
You can track unemployment trends in Arizona, and compare them to the US economy, using the chart below.
$76.7k
PER CAPITA DISPOSABLE INCOME
Growth Rate 2020-25
State Growth Rank
6.5
27
What is Arizona's Per Capita Disposable Income?
Per capita disposable income, also known as disposable personal income (DPI), is the amount of money that the average person in an economy has available for spending and saving after accounting for income taxes. Arizona's DPI in 2025 was $76.7k, compared to the US average of $143.7k, which places it 27th out of all 50 US states.
Disposable income is regarded as a key economic indicator as trends in disposable income are indicative of the level of aggregate demand, the state of labor markets and the financial strength of households.
You can track trends in Arizona's per capita disposable income, and compare it to the US average, using the chart below.
STATE ECONOMIC PROFILE
Arizona Construction & Building Trends
$64,944.5tn
NONRESIDENTIAL CONSTRUCTION
Growth Rate 2020-25
State Growth Rank
46.6%
50
$15.4tn
RESIDENTIAL CONSTRUCTION
Growth Rate 2020-25
State Growth Rank
3.3%
15
61,824
BUILDING PERMITS
Growth Rate 2020-25
State Growth Rank
1.4%
32
What can construction trends tell you about a state’s economy?
In Arizona, non-residential construction was $64,944.5tn in 2025, which ranks it 50th out of all US states. Residential construction was $15.4tn in 2025, which places Arizona 15th in the United States. The number of building permits issued in Arizona in 2025 was 61,824, representing a 1.4% annualized growth rate between 2020 and 2025.
Trends in the construction sector are important because it creates jobs, income and tax revenue for a state. In addition, construction sector activity impacts other sectors in its supply chain, including manufacturing, wholesaling, warehousing, transportation, and real estate, rental and leasing services. Therefore, construction trends are important indicators of the health of an economy.
You can track trends in the number of building permits issued in Arizona, and compare it to trends in the number issued in the United States as a whole, using the chart below.
STATE ECONOMIC PROFILE
Arizona Population Statistics
Which Counties in Arizona have the Largest Populations?
The counties with the highest populations in Arizona are Maricopa County, Pima County and Pinal County, which had populations of 4,676,292, 1,076,441 and 521,792 people in 2025.
STATE ECONOMIC PROFILE
Arizona Demographics
Education Level Arizona
Race in Arizona
Arizona State Industry Reports
IBISWorld State Industry Reports help you quickly understand how an industry performs at the state level compared with the national level by providing accurate and unbiased industry information with a local focus. Use this collection to:
- Discover key local industry trends
- Identify threats and opportunities at the subnational level
- Inform your business strategies and planning
See our list of 650 Arizona Industry Reports.
