That's not unique to Arizona. But Pollack said it's what's replacing those jobs that makes a difference.

``What we have gotten is a lot of leisure and hospitality jobs, a lot of business and professional services, a lot of education and health services,'' he said, jobs that pay less. ``So it could be a (jobs) mix situation.''

Daniel Scarpinato, press aide to Gov. Doug Ducey, said his boss is aware the problem.

``He recognizes that we need to diversify our economy, that we need to focus on things like biotech and the sciences and technology and attracting companies from Silicon Valley,'' Scarpinato said, the ones with the high-wage jobs.

But Hammond said wages are tied to the state's relatively low level of ``educational attainment.''

He said back in the 1940s the average Arizonan had more education than the national average. By 1980 it had pretty much evened off.

And now Hammond said it's ``significantly below'' the national figure. That, he said, makes Arizona less attractive as a place for firms that need skilled workers for high-paying jobs.

``It exactly is a chicken-and-the-egg problem,'' he said.