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Northern Arizona University is Flagstaff's largest employer and its economic anchor, enrolling over 20,000 students and drawing government and tourism employment as the closest competitors. Tourism itself is roughly a $563 million industry supporting about 8,000 jobs, fed by Route 66 nostalgia, Arizona Snowbowl winter sports, and regional hiking and mountain biking. Educational services, health care and social assistance, and accommodation and food services are the city's three largest employment sectors.

A smaller but notable manufacturing base has taken root alongside the university and tourism economy. W.L. Gore & Associates employs more than 2,300 people locally, and the city is 14 times more specialized in biomedical manufacturing than the average US city, producing surgical and medical instruments, circuit boards, and wind generators. Flagstaff Unified School District, with 1,375 employees, rounds out the major employer list, and a small craft-beverage sector of eight breweries, a distillery, and a meadery distributes product across the western US.

A university population, a large seasonal tourist base, and biomedical manufacturers like W.L. Gore create year-round but uneven demand for local services in Flagstaff. Housing tied to NAU and to workers in health care, education, and manufacturing keeps plumbers, HVAC contractors, and dentists busy, while the visitor economy adds turnover-driven demand that a mostly residential mountain town would not otherwise generate.