Apparently, Arizona legislators think the employment rate in that state is too high. After all, it has just passed legislation that makes it far more difficult to hire people — to the extent that at minimum, most businesses will try to cut down on their workforces. In many cases, where such is possible, they'll move out of the state or (if multi-state) simply close up shop on their Arizona offices. In other cases, they may simply go out of business.
If it was an effective law, one could at least excuse the legislators as being misguided — but it's not. In fact, it's self-contradictory. Imagine trying to run a business where you are required to check up on the citizenship of all employees current and future, and at the same time it is illegal to check up on the citizenship of current employees. Furthermore, it's illegal to check up on citizenship of prospective employees until within three days of hiring (before or after, I think) — which means that only after the costs of interviewing, telling other candidates that might be good choices to go home, and so on, you may then find out that your top pick cannot be hired.
Arizona: the state of "damned if you do, damned if you don't," apparently. If you're an entrepreneur thinking about moving to Arizona, just don't.
You probably don't want to go to Massachusetts (aka Mordor), either.