The long-term trend toward lower-quality jobs in the United States continued between 2001 and 2004. Industrial job quality fell 1.6 percent nationally between 2001 and 2004. The decrease in occupational job quality was not quite as great at 0.9 percent. Thus, overall U.S. job quality dropped 2.5 percent during the three years, causing the U.S. average wage to be 2.5 percent less than it otherwise would have been. Arizona’s job quality fell between 2001 and 2004 at a pace worse than the national average. Relative to the national average, the industrial and occupational job mixes each slipped a bit more than 0.3 percent during the three years, for an overall decline of 0.7 percent. In Arizona, job quality in 2004 was 2.0 percent below the national average, but Arizona ranked 23rd among all states.

The Phoenix metropolitan area’s “favored quarter” for employment in 1995 – the metro area’s highest employment densities outside the primary core – extended from Chaparral Road in Scottsdale to Baseline Road in Tempe. Downtown and South Scottsdale’s success can be traced to being adjacent to the favored residential quarter that extends from the area around the Phoenix Mountains through north Scottsdale. In the 1990s, the favored employment quarter has been extending north in Scottsdale through the favored residential quarter. The presence of Arizona State University, proximity to Sky Harbor Airport, and access to the region’s first two freeways contributed to the portion of Tempe north of Baseline Road becoming the largest employment center outside of the primary core in Phoenix. Employment also was above average south of Baseline Road, extending into the secondary favored residential quarter of South Tempe and Ahwatukee – Foothills. Considering residential and economic factors, the Phoenix metro area’s favored quarter stretches from north of Squaw Peak in northeast Phoenix through Paradise Valley, Scottsdale, and Tempe to south of South Mountain in southeast Phoenix.

The best way to evaluate job quality would be to analyze a dataset that presents both occupational and industrial data, but the only dataset of this nature available by state comes from the decennial census. It is severely limited by small sample size, the latest data are for 1999, and the 1999 data are not consistent with the 1989 data. Thus, the initial work by the Seidman Institute on job quality ("Job Quality in Arizona", March 2005, presented data on Arizona job quality from several sources of either industrial or occupational data. "Job Quality in Arizona Compared to All States" is an extension of the March 2005 report. Arizona’s job quality in the latest year and its change over time is compared to the national average and is ranked among the 51 “states” (including the District of Columbia).