Economy of Arizona facts for kids
The Economy of Arizona is all about how people in the state make money, what jobs they do, and what products and services are created there. In 2020, Arizona's total economic output, called its gross state product, was about $373 billion. This big number shows the value of everything produced in Arizona that year. The state's economy is quite varied, with important parts like health care, transportation, and government jobs.
The average income for each person in Arizona was about $40,828. This is called the per capita income. Long ago, Arizona's economy depended on five main things, often called the "five C's": copper, cotton, cattle, citrus (like oranges and lemons), and climate (which means tourism). Today, copper is still a very important part of Arizona's economy. The state mines a lot of copper, making up two-thirds of all the copper produced in the United States!
Jobs in Arizona
In 2016, there were over 2.3 million jobs in Arizona, and more than 139,000 businesses. The biggest employer in Arizona is the state government itself. This includes jobs in schools, public safety, and other state services. The largest private company that employs people in Arizona is Banner Health, a big health care company. They had over 39,000 employees in 2016.
As of March 2016, the unemployment rate in Arizona was 5.4%. This means that about 5.4% of people who wanted jobs couldn't find them at that time.
Here are some of the biggest job areas in Arizona (as of August 2014, not including farming jobs):
- Trade, transportation, and utilities: This includes jobs in stores, shipping, and providing electricity or water.
- Government: Jobs working for the state, county, or city.
- Education and health services: Jobs in schools, hospitals, and clinics.
- Professional and business services: Jobs like accounting, legal work, or IT services.
- Leisure and hospitality: Jobs in hotels, restaurants, and entertainment.
- Financial activities: Jobs in banks, insurance, and real estate.
- Manufacturing: Jobs making products in factories.
- Construction: Jobs building homes, roads, and other structures.
- Mining and logging: Jobs digging for minerals like copper or cutting down trees.
Big Companies That Employ People
Many large companies have a lot of employees in Arizona. Here are some of the biggest private employers in the state as of 2016:
- Banner Health: A major health care provider.
- Walmart Stores, Inc.: A large discount store chain.
- Kroger Co.: A big grocery store company.
- McDonald's Corp.: A well-known fast-food restaurant chain.
- Wells Fargo & Co.: A large financial services company (banks).
- Intel Corp.: A company that makes computer chips.
- American Airlines: A major airline.
- Home Depot Inc.: A retail store for home improvement.
- Honeywell International Inc.: A company that makes aerospace parts and other technologies.
- Raytheon Co.: A company that makes defense products, like missiles.
- Freeport-McMoRan Copper & Gold Inc.: A big mining company, especially for copper.
- Amazon.com: A huge online shopping company.
These companies offer many different types of jobs, from health care to retail to technology.
Taxes in Arizona
Taxes are money that people and businesses pay to the government. This money helps pay for public services like schools, roads, and police.
Arizona collects income tax from people's earnings. The amount of tax you pay depends on how much money you earn. The state also has a sales tax, which is called a "transaction privilege tax." This tax is added to the price of most things you buy. The state sales tax is 5.6%, but cities and counties can add their own sales taxes, which usually adds another 1% to 3%. This means the total sales tax can sometimes be as high as 10.7% in some places.
When you stay in a hotel or motel in Arizona, there's also a special tax for that, which is about 7.27%. Good news for your grocery bill: Arizona does not charge state sales tax on food you buy to eat at home, or on medicines prescribed by a doctor. However, some cities in Arizona might add a small tax on food.
All fifteen counties in Arizona collect taxes, and most cities do too. These taxes help fund local services.
See also
- List of power stations in Arizona
