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Arizona Economy - Arizona's economy is worst when compared to other states in the west and its job market has seen largest losses through out the nation. Due to the over building of houses and negative job growth today Arizona's economy is in recession because of its high concentration of employment in construction and its support industries. With prior exposure to real-estate speculation and sub prime lending the unemployment rate in Arizona is expected to reach as high as 8 percent in 2009. With low mortgage rates, stabilizing housing industry and better lending by banks lead to Arizona economy recovery.