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US State economic profile
Arizona - Economic Profile
Statistics, economic information and rankings for the Grand Canyon State
In 2026, the state of Arizona has a population of 7,778,442, having grown an annualized 1.3% over the five years to 2026, which ranks it 8th out of all 50 US states by growth rate. Arizona's gross state product (GSP) in 2026 reached $463.7b, with growth of 3.2% over the 5 years to 2026. Businesses in Arizona employed a total of 3,812,442 people in 2026, with average annual employment growth over the past five years of 2.1%. The top three sectors by total employment are Real Estate & Rental & Leasing, Healthcare & Social Assistance, Manufacturing, while the unemployment rate across the state in 2026 was 4.9%.
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State economic profile
Arizona Economic Overview
$463.7b
Gross state product
7,778,442
Population
774,923
Businesses
What is Arizona's Gross Domestic Product (GDP)?
In 2026, Arizona's GDP reached $463.7b, representing an increase of 3.2% from 2025. Arizona's GDP has grown at an annualized rate of 2.6% over the five years to 2026. Moreover, Arizona's trailing five-year GDP growth ranks it 9th 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
Learn about current trends affecting the most significant industries for Arizona's state economy, down to the county level. IBISWorld offers state industry research reports on over 30,000 industries across all 50 states in the US, including 641 industries in Arizona.
What are Arizona's Largest Industries by Revenue?
The largest industries by revenue in Arizona are Third-Party Administrators & Insurance Claims Adjusters, Property, Casualty and Direct Insurance and New Car Dealers, which generated $42.8b, $35.7b and $30.2b in 2026.
| Industry | 2026 revenue | |
|---|---|---|
| 1. | Third-Party Administrators & Insurance Claims Adjusters | $42.8b |
| 2. | Property, Casualty and Direct Insurance | $35.7b |
| 3. | New Car Dealers | $30.2b |
| 4. | Hospitals | $28.5b |
| 5. | Commercial Banking | $27.8b |
| 6. | Public Schools | $24.8b |
| 7. | Drug, Cosmetic & Toiletry Wholesaling | $24.1b |
| 8. | Warehouse Clubs & Supercenters | $23.5b |
| 9. | Health & Medical Insurance | $23.4b |
| 10. | Supermarkets & Grocery Stores | $19.4b |
State economic profile
Top Companies in Arizona
Learn about current trends affecting the top companies in Arizona. IBISWorld offers benchmarking data and tools on over 5,000 companies in the US.
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 2026.
| Company | 2026 employment | Share of employment | |
|---|---|---|---|
| 1. | State of Arizona | 40,240 | 1.1% |
| 2. | Walmart | 36,843 | 1.0% |
| 3. | Banner Health | 28,310 | 0.7% |
| 4. | United States Department of the Air Force | 21,870 | 0.6% |
| 5. | Kroger | 21,123 | 0.6% |
| 6. | Wells Fargo | 15,000 | 0.4% |
| 7. | Maricopa County | 13,900 | 0.4% |
| 8. | United States Department of the Army | 13,740 | 0.4% |
| 9. | University of Arizona | 13,320 | 0.3% |
| 10. | Raytheon | 12,810 | 0.3% |
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 & Rental & Leasing, Healthcare & Social Assistance and Manufacturing sectors contributed the most to Arizona's GDP in 2026, representing a combined 41.0% of state GDP.
GDP trends by sector are an important indicator of which sectors are contributing the most value-add to the state economy, in addition to how the state economy is evolving over time.
| Sector | GDP | Growth 2026 | Annualized growth 2021-26 |
|---|---|---|---|
| Real Estate & Rental & Leasing | 89,297,654,638 | 6.9% | 7.5% |
| Healthcare & Social Assistance | 46,052,415,996 | 6.5% | 6.8% |
| Manufacturing | 42,478,288,939 | 3.5% | 2.9% |
| Professional, Scientific & Technical Services | 34,442,594,857 | 6.3% | 6.5% |
| Retail Trade | 33,044,682,272 | 4.3% | 3.8% |
| Construction | 24,163,315,234 | 3.3% | 3.1% |
| Finance & Insurance | 23,525,516,382 | -3.4% | -4.5% |
| Information | 22,448,917,915 | 6.5% | 5.8% |
| Administration, Business Support and Waste Management Services | 22,446,754,923 | 4.2% | 4.3% |
| Wholesale Trade | 22,394,681,289 | 2.9% | 2.9% |
| Accommodation & Food Services | 16,372,281,219 | 5.0% | 4.7% |
| Transportation & Warehousing | 14,831,178,767 | 2.8% | 2.3% |
| Management of Companies and Enterprises | 12,509,856,342 | 14.9% | 15.5% |
| Other Services (except Public Administration) | 7,517,945,329 | 0.5% | 0.4% |
| Utilities | 5,649,793,433 | -4.4% | -5.2% |
| Arts, Entertainment & Recreation | 5,143,149,260 | 11.2% | 13.7% |
| Educational Services | 4,755,154,493 | 1.8% | 2.3% |
| Mining | 3,970,674,689 | -4.4% | -8.4% |
| Agriculture, Forestry, Fishing & Hunting | 2,223,694,785 | 2.8% | 6.6% |
What is Arizona's Employment by Sector?
The Retail Trade, Healthcare & Social Assistance and Administration, Business Support and Waste Management Services sectors contributed the most to employment in Arizona in 2026, representing a combined 35.7% 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.
| Sector | Employment | Growth 2026 | Annualized growth 2021-26 |
|---|---|---|---|
| Retail Trade | 508,364 | 2.2% | 3.3% |
| Healthcare & Social Assistance | 492,989 | 3.0% | 3.5% |
| Administration, Business Support and Waste Management Services | 358,795 | 1.7% | 1.6% |
| Accommodation & Food Services | 350,653 | 0.9% | 4.6% |
| Educational Services | 309,259 | 2.4% | 3.5% |
| Professional, Scientific & Technical Services | 290,137 | 2.3% | 3.0% |
| Construction | 278,325 | 2.2% | 2.3% |
| Transportation & Warehousing | 247,567 | 4.1% | 4.7% |
| Finance & Insurance | 213,098 | 1.1% | 1.3% |
| Manufacturing | 173,063 | 1.6% | 2.5% |
| Other Services (except Public Administration) | 143,000 | 1.5% | 3.4% |
| Real Estate & Rental & Leasing | 142,181 | 1.5% | 1.2% |
| Wholesale Trade | 106,774 | 1.3% | 1.9% |
| Information | 89,019 | 3.3% | 5.0% |
| Arts, Entertainment & Recreation | 70,116 | 1.5% | 5.0% |
| Utilities | 23,289 | 1.3% | 0.4% |
| Mining | 11,365 | 0.5% | 0.4% |
| Agriculture, Forestry, Fishing & Hunting | 4,448 | 2.2% | -0.7% |
State economic profile
Arizona Employment Trends
3.8m
Employment
4.9%
Unemployment
What Employment Trends are Impacting Arizona?
The state of Arizona employs 3,812,442 people in 2026, which ranks it 15th out of all 50 US states. Employment in Arizona has grown at an annualized rate of 3.0% over the five years to 2026, overperforming the national average of 1.7%. Major sectors by employment in Arizona include Retail Trade, Healthcare & Social Assistance and Administration, Business Support and Waste Management Services, which employed 508,364, 492,989 and 358,795 people in 2026, respectively. Arizona's unemployment rate is 4.9% in 2026, which ranks it 36th out of all 50 US states. Arizona's unemployment rate has trended downwards at a rate of -0.5% over the five years to 2026, 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.
$81.4k
Per capita disposable income
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 2026 was $81.4k, compared to the US average of $156.5k, which places it 28th 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
$48,730.1tn
Nonresidential construction
$13.0tn
Residential construction
45,283
Building permits
What can construction trends tell you about a state’s economy?
In Arizona, non-residential construction was $48,730.1tn in 2026, which ranks it 46th out of all 50 US states. Residential construction was $13.0tn in 2026, which places Arizona 12th out of all 50 US states. The number of building permits issued in Arizona in 2026 was 45,283, representing a -6.9% annualized growth rate between 2021 and 2026.
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 4,721,655, 1,082,964 and 542,186 people in 2026.
| Region | 2026 population | Annual growth 2021-26 | Share of population |
|---|---|---|---|
| Maricopa | 4.7m | 1.0% | 60.7% |
| Pima | 1.1m | 0.6% | 13.9% |
| Pinal | 542.2k | 3.8% | 7.0% |
| Yavapai | 259.8k | 1.4% | 3.3% |
| Mohave | 233.1k | 1.4% | 3.0% |
| Yuma | 222.8k | 1.5% | 2.9% |
| Coconino | 145.0k | 0.1% | 1.9% |
| Cochise | 123.3k | -0.4% | 1.6% |
| Navajo | 111.1k | 0.6% | 1.4% |
| Apache | 64.1k | -0.5% | 0.8% |
| Gila | 54.5k | 0.3% | 0.7% |
| Santa Cruz | 50.6k | 1.0% | 0.7% |
| Graham | 40.8k | 1.0% | 0.5% |
| La Paz | 17.0k | 0.5% | 0.2% |
| Greenlee | 9.3k | -0.2% | 0.1% |
State economic profile
Arizona Demographics
In Arizona, 36.5% of the population has a Bachelors or higher. The largest ethnic group in Arizona is White, accounting for 51.2% of the state's population.
Education level in Arizona
| Education level | Share (%) |
|---|---|
| Bachelors or higher | 36.5 |
| Other | 63.5 |
Race in Arizona
| Race | Share (%) |
|---|---|
| White | 51.2 |
| Hispanic | 32.7 |
| Other | 6.3 |
| Black | 5.3 |
| Asian | 4.5 |
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, with 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 641 Arizona industry reports.
Other states to explore
Compare Arizona’s economy with other states in the United States.
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