Flagstaff economic analysis shows job and wage growth post minimum wage increase

Flagstaff's economy is showing signs of resilience and growth, according to recent discussions at the Flagstaff Tourism Commission meeting held on March 27, 2025. The meeting highlighted a comprehensive analysis of the local economic landscape, particularly in relation to the impact of minimum wage increases.

Key findings presented during the meeting revealed that Flagstaff has experienced an overall increase in jobs, wages, and the number of establishments since the implementation of the minimum wage increase. Despite a temporary decline in the leisure and hospitality sectors during the COVID-19 pandemic, recovery has been noted, particularly in manufacturing, where wages have rebounded.

The analysis utilized a "difference in difference" economic model, which compares the economic outcomes of Flagstaff with similar metropolitan areas that did not experience significant minimum wage changes. This methodology, explained by experts from Northern Arizona University, aims to isolate the effects of the wage policy on the local economy.

The meeting also included qualitative research, featuring focus groups with local businesses and interviews with workers, to gather insights on the real-world implications of the wage increase. This dual approach—combining quantitative data with qualitative feedback—provides a more nuanced understanding of how the minimum wage policy has influenced Flagstaff's economic recovery and growth.

As Flagstaff continues to navigate the post-pandemic landscape, the findings from this meeting underscore the importance of ongoing economic analysis and community engagement in shaping future policies. The commission's commitment to monitoring these trends will be crucial in ensuring that the local economy remains robust and inclusive for all residents.