Employment Share by Industry

How are we doing?

In 2016 the employment mix by industry across the Tucson Metropolitan Statistical Area (MSA) was similar to the state of Arizona and the U.S. The only notable differences were the share of manufacturing; government; and trade, transportation and utilities jobs within these three geographic areas. Government jobs accounted for 20.0% of Tucson’s employment, whereas the share of government jobs for Arizona and the nation was, 15.0% and 15.2%, respectively. Government jobs reflect state and local government employees and federal civilians; university employees are considered government employees. Tucson has a large military presence due to local military bases. The percentage of military employment is considerably higher in Tucson at 2.1%, compared to 1.2% for Arizona and 1.3% for the U.S. In 2016, the U.S. had a larger share of manufacturing jobs (8.4%) compared to Arizona and Tucson MSA at 5.8% and 6.1%, respectively; while the U.S. and Arizona’s share of trade, transportation, and utilities job were similar at 18.6% and 18.9% compared to Tucson MSA’s smaller share of 15.8%.

Why is it important?

Employment share by industry indicates which industries dominate the employment mix. This is important because it provides insight into the landscape of a region’s workforce and the potential job opportunities that may be available. A large share of government jobs in a region lends to increased stability of the business cycle. Regions with lots of construction and manufacturing jobs tend to be very business cycle sensitive.  In contrast, regions with a large share of healthcare and government jobs tend to be less sensitive to the business cycle.

How do we compare?

The Tucson MSA has an industrial mix that is similar to the state of Arizona with the exception of government jobs. The government sector (excluding military) represents 20.0% of total employment in the Tucson MSA, five percentage points higher than the share of government jobs in Arizona or the nation. The military share of total employment in 2016 was 2.1% for the Tucson MSA, substantially higher than the state of Arizona where the military share of total employment was only 1.2%. The military represents a slightly larger share of total employment for the U.S. at 1.3%, still considerably lower than the Tucson MSA.  Tucson’s large military share reflects local military bases such as Davis-Monthan Air Force Base and the 162nd Fighter Wing of the Air National Guard.

How is it measured?

Employment by industry is estimated based on a survey of employers. It reflects the number of jobs at businesses and government entities located within a geographically defined area. An individual that works at two separate establishments during a year will be counted twice. Employment data comes from the U.S. Bureau of Labor Statistics Current Employment Statistics (CES). The CES collects monthly survey data on employment, hours and earnings of workers on nonfarm payroll. All military data comes from the U.S. Bureau of Economic Analysis (BEA).