Learn About the Labor Force Participation Rate in Tucson, Arizona MSA

How are we doing?

Labor Force Participation Rate Among Ages 25-54 (2024)

In 2024, the labor force participation rate among prime working-age adults aged 25 to 54 in the Tucson Metropolitan Statistical Area (MSA) was 81.3%. Compared to 12 peer MSAs, Tucson ranked near the bottom, posting the third lowest labor force participation rate, ahead of El Paso and Albuquerque. Denver led the group at 88.3%, well ahead of the other MSAs. Notably, the six lowest labor force participation rates among prime-age adults were in the Southwest. This highlights a broader regional challenge in engaging working-age residents in the labor market.

Why is it important?

The labor force participation rate is a key measure of the health and potential output of the economy. It reflects the share of the population that is either employed or actively seeking work. Demographics play an important role. Regions with a larger share of adults in their prime working years typically have higher participation rates and greater economic growth potential. When demographic factors are held constant, a higher labor force participation rate indicates that workers perceive job opportunities as meaningful and worth their time. This is an important indicator of the strength and responsiveness of the local labor market.

How do we compare?

In 2024, the labor force participation rate for men ages 25-54 in the Tucson MSA was 85.9%, nearly 10 percentage points higher than the rate for females at 76.6%. Both Tucson and Arizona posted lower male and female labor force participation rates than the nation, reflecting lower labor market engagement among prime working-age adults in Tucson and Arizona.

What are the key trends?

The U.S. economy experienced a long-term increase in the labor force participation rate, largely driven by rising participation by women in the workforce during the second half of the 20th century. That trend continued from 2000 through 2024 as the national rate for adults ages 25-54 grew from 79.6% to 83.3%.

Arizona experienced a modest decrease in the labor force participation rate among the prime working age between 2009 and 2014, falling from 79.7% to 78.6%, before climbing to a 25-year high of 81.7% in 2024. Tucson’s rate hovered near 80% since 2009 but increased to 81.3% in 2024, slightly below the Arizona rate. Tucson’s labor market appears less affected by the mid-2000s economic boom and bust. This is likely due in part to a higher share of government-related employment. This sector tends to be more insulated from the business cycle, providing some stability during both expansions and downturns.

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 from the U.S. Census Bureau, while data for the year 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 period and can only be compared to non-overlapping five-year estimates (for example, 2005-2009 and 2010-2014).