August State and Local Employment Report

The Employment Development Department (EDD) released the state and local employment reports for the month of August. Total California nonfarm employment increased by 36,300 jobs over the month in seasonally adjusted (SA) terms.

The year-over-year change showed an increase 470,000 jobs (SA). This equated to growth rate of 3.0%, exceeding the August national increase of 2.1%. California’s private sector added 434,300 jobs (an increase of 3.3% over the year), while employment in the public sector rose by 1.6% (37,800).

Industry employment trends have been consistent for several months. Nine of the 11 super-sectors added jobs over the year to August: construction; trade, transportation and utilities; information; financial activities; professional and business services; educational and health services; leisure and hospitality; other services and government for a combined gain of 473,900 jobs. Professional and business services posted the largest gain on a numerical basis, adding 134,600 jobs (up 5.5%), while construction claimed the largest gain in percentage terms, increasing by 6.5% or 43,800 jobs.

There were two sectors that recorded a decline over the year in August. Mining and logging was down by 8.6%, a loss of 2,700 jobs; manufacturing employment dipped by 0.1% or 3,900 jobs.

California’s unemployment rate declined slightly from 6.2% in July to 6.1% in August and was down from the year ago rate of 7.4%. The civilian labor force was unchanged over the month but was up by 1.1% over the year. Over the last 12 months, 203,000 workers have joined California’s labor force bringing California’s labor force participation rate up to 62.4%. The national rate is 62.6%.

County highlights:

(Note: With the exception of the Los Angeles unemployment rate, county level numbers are not seasonally adjusted, which means there can be large month-to-month fluctuations in job counts. A truer picture of how local labor markets are faring is revealed by focusing on the year-over-year numbers. Annual trends “correct” for the seasonal factors that influence certain industry sectors over the course of the year.)

• In Los Angeles County, the seasonally adjusted unemployment rate was 6.9%, down from 7.2% in July and below the year ago rate of 8.1%. Total nonfarm employment increased by 7,900 jobs over the month  but was up over the year by 76,300 jobs, an increase of 1.8%.

• Educational and health services posted the largest year-over-year gain in employment in August with a net increase of 22,500 jobs.  The health care industry added 23,300 jobs, but a drop of 800 jobs in educational services reduced the overall industry gain.

• Also recording significant job gains were trade, transportation and utilities (17,100 jobs), and leisure and hospitality (16,800 jobs). Most of those jobs were concentrated in accommodation and food services.

• Two of the major industry sectors reported year-over-year declines in August.  Mining and logging lost 300 jobs, while manufacturing continued on its long-term trend decline with a loss of 4,700 jobs.

• In August, the unemployment rate in Orange County was 4.5%, down from 4.7% in July and below the year-ago figure of 5.8%. Nonfarm payroll jobs increased by by 2,200 over the month and were up by 48,500 over the year (an increase of 3.2%).

• In the Riverside-San Bernardino area, the unemployment rate in August was 6.8% compared with 7.1% in July and well below the year ago rate of 8.6%. The Inland Empire gained 6,100 nonfarm payroll jobs over the month and 44,500 over the year. This represented an increase of 3.5%.

• In Ventura County, the unemployment rate was 5.8%, down from the year ago estimate of 7.0%. Total nonfarm employment was unchanged over the month but was up over the year by 2,500 jobs (0.9%).

Summary: California led the nation once again with 36,300 jobs added last month and 470,000 over the year. Los Angeles led the Southern California region with 76,300 jobs added in yearly terms, while the Inland Empire and Orange County led the region in percentage terms with gains of 3.4% and 3.2% respectively.

(Kimberly Ritter-Martinez)

Sources:  http://www.labormarketinfo.edd.ca.gov/