Arizona's seasonally adjusted unemployment rate declined to 8.1 percent in October.
September's rate was 8.2 percent, down from 8.3 percent the previous two months.
Department of Administration economists say the state gained 11,900 jobs in October. The increase is lower than the 10-average October increase of 16,900 jobs.
Both government and private sectors had below-average gains. Of the 11 economic sectors, six added jobs, four lost jobs and one remained unchanged.
The biggest gain was recorded by the trade, transportation and utilities sector, which added 4,900 jobs. That sector typically adds jobs this time of year as retailers prepare for the upcoming holiday season.