Economic Hardship Across U.S. Counties
Economic Hardship (EH) Rankings — Arizona Counties
All Arizona Counties vs. U.S. Extremes
Economic Hardship Index: All Arizona Census Tracts (2023)
Decomposing the Economic Hardship Index
Economic Hardship Clusters (LISA)
Within-County Variation in Economic Hardship (EH) — All 15 Arizona Counties

High Economic Hardship Clusters (HH) — Hot Spot Tracts Statewide:

262

Low Economic Hardship Clusters (LL) — Cold Spot Tracts Statewide:

291

Economic Hardship Mobility: Maricopa Tracts (2013 → 2023)
Neighborhood Hardship Trajectories (2013–2019)

Tracts Improved (2013→2023)

60.4%

Tracts Worsened (2013→2023)

30%

Persistently High Hardship (2013–2023)

16.5%

Emerging Hot Spots (2013–2023)

3.2%

🔴 Areas of Persistent Concern
148 Persistent Hot Spot Tracts (16.5% of Maricopa tracts)

These census tracts had statistically significant high-hardship clustering in both 2013 and 2019. The pattern is not random: a Global Moran’s I of 0.687 confirms that hardship is spatially concentrated, not scattered. Tracts in this category share infrastructure deficits, limited employment access, and concentrated poverty that reinforce one another across neighborhood boundaries.

Implication: Individual-level interventions alone are unlikely to move the needle. Place-based, multi-sector investment is required.

In Maricopa County, these Persistent Hot Spot tracts are concentrated primarily in South Phoenix and parts of West Phoenix, forming a contiguous corridor of long‑term hardship that remains statistically significant across time and index specifications.
🟡 Early Warning Signals
27 Emerging Hot Spot Tracts (3.2% of Maricopa tracts)

These tracts were not significant hardship clusters in 2013 but became statistically significant by 2019, representing the spatial expansion of hardship beyond historically distressed cores. This is an early warning signal that hardship is spreading, not contained.

Displacement paradox: Some “improving” tracts nearby may be gentrifying, pushing lower-income households outward into these emerging clusters. Declining hardship scores do not necessarily mean existing residents are better off.

Emerging Hot Spot tracts are forming along the edges of historically distressed areas in South and West Phoenix, often bordering neighborhoods that show recent improvement. This suggests displacement pressures, where lower‑income and lower‑education households are relocating outward as reinvestment and rising costs affect nearby tracts.
🟢 Signs of Progress Read With Caution
60.4% of Maricopa tracts showed EHI improvement (2013→2023)

The majority of tracts improved over the decade-long window. However, aggregate improvement masks significant variation: 30% of tracts worsened over the same period. The data cannot distinguish genuine economic uplift from population turnover: a tract with a declining hardship index may simply have replaced lower-income residents with higher-income newcomers.

Data limitation: Before drawing conclusions from improving scores, ground-truth verification through community engagement and displacement tracking is essential.

In Maricopa County, apparent improvement is uneven: while many tracts show declining hardship scores, spatial clustering persists and a substantial share of tracts worsened. The expanded index indicates that progress is slower once educational attainment is considered, reinforcing the need to interpret aggregate gains cautiously.
Recommendation 1

Target: 148 Persistent Hot Spot tracts (16.5% of all Maricopa tracts): spatially concentrated, entrenched hardship confirmed by a Global Moran’s I of 0.687.

Persistent High‑Hardship tracts in South and West Phoenix should be prioritized for place‑based, education‑anchored investment strategies rather than isolated income or workforce programs. The expanded index shows that even where employment conditions have stabilized, low educational attainment continues to anchor hardship spatially, keeping these tracts classified as HH across time and index definitions. A coordinated intervention led by Maricopa County in partnership with Phoenix Union High School District and local community colleges could combine adult diploma/GED completion and workforce credentialing within these same corridors.
Recommendation 2

Target: 27 Emerging Hot Spot tracts (3.2% of all Maricopa tracts), new high-hardship clusters not present in 2013, signaling spatial expansion.

Emerging Hot Spot tracts at the edges of historically distressed neighborhoods should be designated as early‑intervention zones and monitored for displacement dynamics. The expanded index shows that these tracts shift into HH status once educational attainment is considered, suggesting that hardship is spreading into areas where residents have limited human‑capital buffers. The county should implement proactive stabilization measures before these neighborhoods become persistent hardship clusters. This could include: renter protections, targeted supports for high‑risk primary and secondary students (including housing stability and nutrition assistance), expanded adult education access, and strengthened school‑to‑career pathways.
Recommendation 3

Evidence base: 60.4% of tracts improved (2013→2023) but 30% worsened; Moran’s I = 0.687 confirms strong spatial clustering persists.

Maricopa County should adopt a dual‑threshold monitoring framework that tracks hardship trends separately for short‑term economic indicators and long‑term education outcomes. The Sankey diagram shows substantial apparent improvement, but the expanded index reveals that progress is less pronounced once educational attainment is included, indicating slower, more fragile mobility. County agencies should require education‑adjusted hardship metrics when evaluating program success to avoid mistaking population turnover or cyclical recovery for durable community uplift.
🔬 Index Sensitivity Reflection

The baseline EHI consists of 3 measures: Poverty + Unemployment + Income (inv.)

Current index: 4-component EHI: Poverty + Unemployment + Income (inv.) + Low Ed. Attainment


Q1: What changed spatially?
Compare Hot Spot tract counts and cluster map patterns between your expanded index and the 3-component baseline. Did adding Low Ed. Attainment shift which tracts or corridors are flagged?

Adding low educational attainment significantly expanded the reach of hardship across Arizona. Statewide High‑High (HH) hot spot tracts increased from 201 to 262, indicating that many areas previously classified as moderate hardship now cross the clustering threshold once education is included. The LISA map shows especially strong expansion in rural counties and tribal areas, as well as deeper clustering in parts of South and West Phoenix, where labor‑market indicators alone had underestimated hardship.

Q2: What stayed the same?
Which Persistent Hot Spot areas appear robustly across index specifications? What does consistency across different index compositions tell us about the reliability of hardship diagnoses in those tracts?

Despite the expanded index, the core Persistent Hot Spot corridors remained consistent, particularly in long‑distressed urban neighborhoods of South Phoenix and rural regions of eastern and northern Arizona. This constancy across index specifications indicates that these areas experience deep, multi-component disadvantage that is not sensitive to how hardship is measured. When tracts remain HH regardless of index composition, we can be confident that we’ve identified entrenched hot spots.

Q3: Policy implications of index choice
If a policymaker targeted place-based investments using the baseline index versus your expanded index, would resource allocation differ? Name specific tracts or geographic corridors and argue which composition better captures the full burden of economic hardship for policy purposes.

Policy targeting would differ meaningfully depending on index composition. The baseline index prioritizes areas experiencing current economic stress, while the expanded index highlights communities facing structural barriers to upward mobility, such as low educational attainment. Under the expanded index, counties like Santa Cruz and additional Maricopa tracts would receive greater attention, shifting policy emphasis toward long-term human capital investments rather than short-term employment or income supports alone. For equitable resource allocation, the expanded index better captures the full burden of hardship experienced by communities.