The Employment
Development Department (EDD) released the state and local employment reports
for the month of October. Total California nonfarm employment increased by
41,200 jobs over the month in seasonally adjusted (SA) terms. Moreover, the
8,200 job gain initially reported for September was revised up to 21,100 jobs.
The
year-over-year change showed an increase of 463,000 jobs (SA). This equated to
a growth rate of 2.9%, once again exceeding the October national increase of
2.0%. California’s private sector added 427,200 jobs (an increase of 3.2% over
the year), while employment in the public sector rose by 1.5% (35,800).
There was little
change in employment trends across industries. Nine of the 11 super-sectors
added jobs over the year to October: 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 468,300 jobs. Professional and
business services once again posted the largest gain on a numerical basis,
adding 130,000 jobs (up 5.3%), while construction continues to claim the
largest gain in percentage terms, increasing by 7.3% and adding 49,800 jobs.
Two sectors that
recorded a decline over the year in October. Mining and logging was down by 7.4%,
a loss of 2,300 jobs; manufacturing employment edged down by 0.2% or 3,000
jobs.
California’s
unemployment rate declined slightly from 5.9% in September to 5.8% in October
and was down from the year ago rate of 7.2%. California’s unemployment rate is
now the lowest it has been since December 2007 when it was also 5.8%. The
civilian labor force edged down over the month by 0.1%, but was up over the
year by 0.6%. Of the 11.4 million Californians not in the labor force, 808,000
(7.1%) say they would like a job, while 0.7% of that group reported being
discouraged over job prospects.
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 6.1%, down from 6.5% in September and
below the year ago rate of 8.0%. Total nonfarm employment (not seasonally
adjusted) increased by 37,800 jobs over the month and was up over the year by
85,300 jobs, an increase of 2.0%.
Educational
and health services posted the largest year-over-year gain in employment in
October with a net increase of 22,600 jobs. The health care industry added
23,500 jobs, but a drop of 900 jobs in educational services reduced the overall
industry gain.
Also
recording significant job gains were leisure and hospitality, which picked up
18,700 jobs, most of which were in accommodation and food services, and professional
and business services employment with the addition 15,300 jobs.
Four
major industry sectors reported year-over-year declines in October:
manufacturing employment contracted by 5,000 jobs; information lost 3,400 jobs;
financial activities was down by 200 jobs, and in the mining and logging
sector, job counts fell by 200.
·
In October, the unemployment rate in
Orange County was 4.3%, up from 4.0% in September but below the year-ago figure
of 5.2%. Nonfarm payroll jobs increased by 13,900 over the month and were up by
41,000 over the year (an increase of 2.7%).
· In the Riverside-San Bernardino
area, the unemployment rate in October was 6.4% compared with 6.1% in September
but below the year ago estimate of 7.7%. The Inland Empire gained 21,400 nonfarm
payroll jobs over the month and 43,200 over the year. This represented an
increase of 3.3%.
· In Ventura County, the unemployment
rate was 5.4%, down from the year ago estimate of 6.4%. Total nonfarm employment
was up by 3,900 over the month and was up over the year by 6,700 jobs (2.3%).
Summary: California’s labor
market was back on track in October after a somewhat weaker showing in
September and the unemployment rate continued its downward trend. In Southern
California, every region saw job gains along with year-over-year decreases in
their unemployment rates. Los Angeles County’s
unemployment rate fell to 6.1%, the lowest since early 2008.
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