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4 pages of employment ads, D6-10
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3 pages of real estate listings, D11-13
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What is the minimum wage for survival? Ryan Randazzo, D3
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M o n e y. A Z C EN T R A L . C O M t h e ar i z o n a r e p u b l i c S u n d ay, s e p t e m b e r 2 3 , 2 0 1 2
Big profits for homeflippers a good sign
Nasdaq
S&P 500
+253.09 +32.79 +23.31 13,075.66 2,958.09 1,385.97
Last week’s results
jobs and the economy
By Catherine Reagor The Republic | azcentral.com
In another sign that metro Phoenix’s housing market is slowly recovering, hundreds of homes across the region sold by banks after foreclosure or through short sales are being flipped by investors for almost double the price they paid just a few months earlier. With metro Phoenix’s median home price steadily climbing this year, speculators have seized on an opportunity to make fast profits and are selling houses across the region at prices not seen since the beginning of the housing boom in 2003-04. Home prices have climbed as the supply of houses for sale has shrunk. The number of homes for sale in the Phoenix area is half of what it was last May, and the median price is up by an astonishing 30 percent since then. Lenders clearing inventories of foreclosure and shortsale homes, coupled with a shortage of other homes for sale, have led to a rapid increase in home prices this year. And the bounce in prices has given cash buyers a
Former carpenter Larry Bradley had to learn new skills to meet changing workplace demands. Many firms are reluctant to hire workers who lack specific skills because they no longer have the resources for on-thejob training. Charlie Leight/The Republic
Skill gap Frustration
See REAL ESTATE, Page D2
Call 12 for action
Some firms want to hire, but applicants lack proper skills
Tempe man claims fraud, sues LA Fitness
By Ryan Randazzo The Republic | azcentral.com
Last year, the CORE Institute, a Phoenix medical laboratory, searched for a lab director for six months. The company eventually gave up, and a vice president shouldered the extra duties. Meanwhile, Phoenix resident Alethea Session has been looking for a job as a finance manager for more than a year. Session has a master’s degree in business administration and 20-plus years of industry experience. But now some companies require that certain finance-manager applicants be certified public accountants, a credential that Session lacks. The two stories illustrate a
By Robert Anglen The Republic | azcentral.com
A Tempe man is suing LA Fitness for fraud, contending that staff members used his electronic signature to charge him for more than $1,200 in services he did not want or need. Benjamin Calleros, 22, said LA Fitness drained his bank account of money set aside for tuition when staff members fraudulently signed him up for personal-training services. The lawsuit mirrors hundreds of concerns posted on consumer-protection websites alleging that LA Fitness bills for unrequested services, continues auto-deducting monthly fees after contracts are canceled and refuses to reimburse once fees are collected. “I was never someone who thought I would sue anyone,” said Calleros, who is a film student at Scottsdale Community College. “But somebody needs to stand up.” LA Fitness officials in Arizona and at its headquarters in California did not respond See LA Fitness, Page D2
Economic Snapshot Retail sales in May $6 billion 5 4 3 2 1 0
May ‘12: $4.1 bil May ‘10: $3.6 bil
2010
2011
2012
Source: Arizona Department of Revenue
More data on retail sales, D3
REACH US
gap in the state and national job market that troubles employers, job seekers and workforce analysts. Although the state unemployment rate is 8.7 percent and nearly 262,000 Arizonans are actively looking for jobs, some employers say that they have trouble finding qualified job candidates. See JOBS, Page D10
By the numbers
3.5 million
Open positions in the U.S.*
702,000
Open positions in the West
261,800
Arizonans actively seeking work
Phoenix needs energy to get talent, companies to stay
I
remember clearly the first time I drove around downtown Phoenix. It was seven years ago, a July scorcher, not a soul to be seen. Where was everyone? The city felt so deserted, even if most people were hunkered inside. But what about in November or even January? I knew the
city was the sixth-largest in the country with nearly 1.5 million. I didn’t see them out in droves then, either. Of course, it never makes sense to rely on visual observation for a place you don’t know well. After living in Los Angeles, I knew that its downtown could be a ghost town after dark, even with a city
MONEY TIP
Even subprime buyers see auto loans loosen DETROIT — For car buyers seeking auto loans, happy days are here again. Banks and auto finance companies are once again welcoming all kinds of customers, even those with less-than-stellar credit. Better yet, experts don’t think the credit pipeline will dry up soon. Low interest rates are making it cheaper for banks to get money, which makes them more willing to lend. The federal funds rate, or the rate at which banks lend money to one another, is near zero percent. Loans to subprime buyers — or buyers with credit scores of 679 or lower — are particularly attractive, since banks can charge higher interest rates. The average interest rate for a deep subprime loan on a new car is 12.9 percent, according to Experian Automotive. —Associated Press
population of nearly 4 million. But while I didn’t expect to see 1.5 million Phoenix residents with my own eyes, I had expected to see a greater city dynamic, the magnetic kind where people engage each other, spur each other, make new things, create life. See ECONOMY, Page D8
Steve beschloss economy
OUR KEY TOPICS » Jobs » Money » Real Estate » Innovation » AZ companies
INSIDE CALL 12 for Action:
Wife’s death leads to credit-card heartache, D2
at money. azcentral.com:
Find a list of Arizona’s largest employers.
Kathy Tulumello, business editor, kathy.tulumello@arizonarepublic.com or 602.444.NEWS.
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