03/19/2024

California’s growth slowdown continues in August as the state loses 8,200 jobs

California’s slowing economic expansion was evident in August as the state lost 8,200 net jobs and the unemployment rate rose to 5.1%, from 4.8% a month earlier, according to data released Friday from the state’s Employment Development Department.

The drop in employment follows a robust July in which the Golden State gained the most jobs in more than a year: 84,500, revised up from a previous estimate of 82,600.

August’s slide back was in large part driven by employers in the leisure and hospitality sector: They cut 12,400 jobs on a seasonally adjusted basis — the largest decrease by any sector in the state.

Professional and business services and the public sector also lost jobs. Manufacturing and the trade, transportation and utilities sector, meanwhile, gained jobs.

The report is the latest topsy-turvy snapshot of the California economy, which in recent months has alternated between job gains and losses. Month-to-month jobs movements are erratic, though, and analysts caution against drawing conclusions from the data.

“This month’s job losses should not be a serious concern,” said Michael Bernick, who was director of the state Employment Development Department between 1999 and 2004. “They are important to follow, but at the same time, you want to step back.”

Indeed, the longer-term picture shows an economy that continues to expand, but is showing signs of slowing down.

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