Highlights for policy makers:
- Unemployment Rate Level at 4.3%; Total Employment Loses 8,800
- Labor Force Participation Rate Level Dips to 62.1%
- State Employment Growth Rankings—California Slips to #2
- Nonfarm Jobs Up 39,300
- Four Industries Below 2007 Pre-Recession Job Levels
- Job Gains by Wage Level
- Two-Tier Economy Persists—Central Valley Unemployment Three Times as High as Bay Area
- Bay Area Provided 39.5% of Net Employment Growth Since Recession
- Eight California MSAs in the 10 Worst Unemployment Rates Nationally
Unemployment Rate Level at 4.2%; Total Employment Loses 8,800
The Labor Force data for April 2018 (seasonally adjusted; California preliminary) is shown below, along with the change from the prior month:
| Seasonally Adjusted | California | US | ||
|---|---|---|---|---|
| Apr 2018 | Change from Mar 2018 | Apr 2018 | Change from Mar 2018 | |
| Unemployment Rate | 4.2% | -0.1 | 3.9% | -0.2 |
| Labor Force | 19,358,700 | -0.1% | 161,527,000 | -0.1% |
| Participation Rate | 62.1% | -0.1 | 62.8% | -0.1 |
| Employment | 18,543,400 | 0.0% | 155,181,000 | 0.0% |
| Unemployment | 815,300 | -1.5% | 6,346,000 | -3.6% |
The related not seasonally adjusted numbers (California preliminary), with the change from April 2017:
| Not Seasonally Adjusted | California | US | ||
|---|---|---|---|---|
| Apr 2018 | Change from Apr 2017 | Apr 2018 | Change from Apr 2017 | |
| Unemployment Rate | 3.8% | -0.9 | 3.7% | -0.4 |
| Labor Force | 19,246,800 | 0.0% | 161,280,000 | 0.9% |
| Participation Rate | 61.7% | -0.5 | 62.7% | -0.1 |
| Employment | 18,508,900 | 0.9% | 155,348,000 | 1.4% |
| Unemployment | 737,800 | -18.2% | 5,932,000 | -9.5% |
California Employment Development Department’s (EDD) latest data shows on a seasonally adjusted basis, total employment edged down 8,800 from March, while the number of unemployed dropped by 12,500. The labor force dipped by 21,300.
California’s seasonally adjusted unemployment rate edged down to 4.2%, the lowest level in the current data series that began in 1976. California tied with Delaware for the 21st highest unemployment rate among the states. The unadjusted rate dropped from 4.7% in April 2017 to 3.8%. Contraction in the labor force was a key element in reaching the April low.
Total US employment saw a seasonally adjusted gain of 3,000 from March, while the number of unemployed dropped by 239,000. The national unemployment rate dropped to 3.9%, near the record low in the current data series seen in 2000. The national labor force numbers dropped by 236,000. Contraction in the national labor force also contributed to the improved unemployment rate.
Labor Force Participation Rate Dips to 62.1%
California’s participation rate (seasonally adjusted) in April dipped 0.1 to 62.1%, while the US rate dipped by the same amount to 62.8%. The California rate is now only 0.2 percentage points above the revised series low from 2015.
Looking at the underlying unadjusted data for California, the April 2018 labor force is essentially unchanged from April 2017. Movement is primarily a shift of unemployed to employed in nearly equal numbers, with only a net gain of 6,200 moving into the labor force. In contrast, the US numbers show a significant rise in labor force entrants by 1,463,000 (0.9%), with the gains in employment (2,086,000) strongly outpacing the drop in unemployment (623,000).
Considered by age, the prime working age groups in California (age 25-54 and 55-64) remain somewhat below their previous highs since 2000. Continued declines have been among youth and young adults. These trends in particular have long-term implications for income distributions in the state, as most studies indicate that work skills developed through early employment are correlated with long-term earnings potential. In contrast to the younger groups, persons 65 and older show a rising labor force participation rate compared to the prior low at the beginning of this period.
Labor Force Participation Rate by Age
| Prior Max | Mar 2018 | |
|---|---|---|
| Total | 67.2% | 62.2% |
| 16-19 | 46.8% | 27.2% |
| 20-24 | 76.4% | 65.9% |
| 25-54 | 82.1% | 80.0% |
| 55-64 | 66.3% | 63.5% |
| Prior Min | ||
| 65+ | 12.1% | 19.6% |
State Employment Growth Rankings—California Slips to #2
| Rank | Number of Employed | Percentage Change | Population Adjusted (employment growth per 1,000 civilian noninstitutional population) |
|---|---|---|---|
| 1 | TX 299,200 | ID 3.1% | ID 19.1 |
| 2 | CA 245,300 | CO 2.8% | CO 18.8 |
| 3 | FL 162,300 | GA 2.6% | UT 16.5 |
| 4 | GA 124,200 | NV 2.6% | GA 15.6 |
| 5 | CO 82,100 | AZ 2.5% | NV 15.2 |
| 6 | AZ 78,900 | UT 2.5% | AZ 14.5 |
| 7 | TN 65,800 | LA 2.4% | TX 14.1 |
| 8 | NC 64,800 | TX 2.3% | LA 13.3 |
| 9 | MA 57,400 | TN 2.2% | TN 12.5 |
| 10 | WA 56,700 | NM 1.9% | MN 11.8 |
| 11 | VA 51,900 | MN 1.7% | DC 11.4 |
| 12 | MN 51,300 | DC 1.7% | NM 10.4 |
| 13 | LA 47,700 | OR 1.7% | MA 10.3 |
| 14 | OH 44,100 | FL 1.7% | OR 10.3 |
| 15 | WI 42,700 | OK 1.7% | WA 9.8 |
| 16 | IL 38,600 | MA 1.6% | OK 9.7 |
| 17 | UT 36,800 | WA 1.6% | FL 9.6 |
| 18 | NV 35,500 | WI 1.4% | WI 9.3 |
| 19 | OR 34,100 | DE 1.4% | VT 8.7 |
| 20 | OK 28,900 | NC 1.4% | DE 8.2 |
| 21 | IN 26,700 | VT 1.3% | NC 8.1 |
| 22 | KY 24,900 | CA 1.3% | CA 7.9 |
| 23 | ID 24,700 | KY 1.3% | VA 7.9 |
| 24 | MI 23,200 | VA 1.3% | KY 7.2 |
| 25 | AL 19,900 | SD 1.0% | SD 7.0 |
| US 2,020,000 | US 1.3% | US 7.9 |
Between April 2017 and April 2018, Bureau of Labor Statistics (BLS) data shows the total number of employed in California increased by 245,300 (seasonally adjusted), or 12.1% of the total net employment gains in this period for the US. Based on the total numbers, California slipped to 2nd place behind Texas (which has a civilian working age population only 69% as large as California’s) but ahead of Florida’s (55% as large) gains at 162,300. Measured by percentage change in employment over the year, California dropped to 22nd highest. Adjusted for working age population, California also dropped to 22nd.
Nonfarm Jobs Up 39,300
EDD reported that between March and April 2018, seasonally adjusted nonfarm wage and salary jobs rose 39,300. March’s results were revised to a 5,400 gain from the previously reported 7,200 loss.
In the not seasonally adjusted nonfarm numbers, hiring saw increases in all but 2 industries over the year. The change in total payroll jobs from April 2017 saw the largest increases in Construction (63,400), Social Assistance (40,400), and Administrative & Support & Waste Services (38,900). Declines were in Other Services (-1,000) and Utilities (-700).
| Not Seasonally Adjusted Payroll Jobs | Apr 2018 | Mar 2018 | Change Apr 2018 – Mar 2018 | Change Apr 2018 – Apr 2017 |
|---|---|---|---|---|
| Total Farm | 433,700 | 366,500 | 67,200 | 7,000 |
| Mining and Logging | 21,600 | 21,200 | 400 | 500 |
| Construction | 855,200 | 833,000 | 22,200 | 63,400 |
| Manufacturing | 1,313,700 | 1,315,600 | -1,900 | 13,400 |
| Wholesale Trade | 725,400 | 726,700 | -1,300 | 5,700 |
| Retail Trade | 1,683,700 | 1,675,900 | 7,800 | 14,800 |
| Utilities | 58,100 | 57,900 | 200 | -700 |
| Transportation & Warehousing | 576,800 | 577,200 | -400 | 23,300 |
| Information | 534,800 | 533,000 | 1,800 | 15,900 |
| Finance & Insurance | 547,600 | 545,800 | 1,800 | 1,100 |
| Real Estate & Rental & Leasing | 286,700 | 285,300 | 1,400 | 6,000 |
| Professional, Scientific & Technical Services | 1,258,000 | 1,252,300 | 5,700 | 27,700 |
| Management of Companies & Enterprises | 232,500 | 231,400 | 1,100 | 800 |
| Administrative & Support & Waste Services | 1,112,400 | 1,108,600 | 3,800 | 38,900 |
| Educational Services | 383,800 | 386,900 | -3,100 | 10,300 |
| Health Care | 1,522,000 | 1,524,400 | -2,400 | 29,700 |
| Social Assistance | 807,400 | 803,300 | 4,100 | 40,400 |
| Arts, Entertainment & Recreation | 311,200 | 308,400 | 2,800 | 4,900 |
| Accommodation | 229,900 | 227,800 | 2,100 | 6,400 |
| Food Services | 1,447,500 | 1,433,500 | 14,000 | 30,000 |
| Other Services | 562,800 | 556,100 | 6,700 | -1,000 |
| Government | 2,616,100 | 2,612,000 | 4,100 | 30,300 |
| Total Nonfarm | 17,087,200 | 17,016,300 | 70,900 | 361,800 |
| Total Wage and Salary | 17,520,900 | 17,382,800 | 138,100 | 368,800 |
At 356,800, California showed the highest increase in seasonally adjusted nonfarm jobs among the states from April 2017 to April 2018, ahead of Texas at 332,300. By percentage growth in jobs, California rose to 8th highest at 2.1%, above the US average of 1.6%. By population adjusted jobs growth, California also rose to 8th highest.
| Rank | Number of Jobs | Employment Growth (%) | Population Adjusted (job growth per 1,000 civilian noninstitutional population) |
|---|---|---|---|
| 1 | CA 356,800 | NV 3.4% | UT 21.5 |
| 2 | TX 332,300 | ID 3.3% | NV 19.4 |
| 3 | FL 178,400 | UT 3.3% | ID 18.1 |
| 4 | NY 117,200 | WA 2.8% | WA 16.2 |
| 5 | WA 94,000 | TX 2.7% | CO 15.9 |
| 6 | NC 84,100 | CO 2.6% | TX 15.7 |
| 7 | PA 83,600 | AZ 2.2% | WY 12.3 |
| 8 | CO69,700 | CA 2.1% | CA 11.5 |
| 9 | GA 67,100 | FL 2.1% | AZ 11.3 |
| 10 | AZ 61,700 | OR 2.0% | OR 11.2 |
| 11 | NJ 58,600 | WY 2.0% | FL 10.6 |
| 12 | OH 56,900 | NC 1.9% | NC 10.5 |
| 13 | IL 53,000 | OK 1.8% | OK 10.2 |
| 14 | UT 48,200 | SC 1.7% | DC 9.5 |
| 15 | MA 47,600 | GA 1.5% | SC 9.0 |
| 16 | VA 46,300 | TN 1.5% | KS 8.6 |
| 17 | MI 45,600 | RI 1.5% | TN 8.5 |
| 18 | NV 45,300 | NJ 1.4% | MA 8.5 |
| 19 | TN 45,000 | PA 1.4% | NH 8.5 |
| 20 | OR 37,200 | NH 1.4% | GA 8.4 |
| 21 | SC 35,500 | KS 1.4% | RI 8.4 |
| 22 | MO 33,700 | NM 1.3% | NJ 8.2 |
| 23 | IN 30,600 | MA 1.3% | PA 8.2 |
| 24 | OK 30,500 | HI 1.3% | HI 7.8 |
| 25 | WI 27,900 | MS 1.3% | NY 7.4 |
| US 2,280,000 | US 1.6% | US 9.0 |
Four Industries Below 2007 Pre-Recession Job Levels
Comparing the number of jobs by industry in April 2018 (not seasonally adjusted), four industries had employment below the 2007 pre-recession levels. The highest gain industries were led by lower wage Food Services, Health Care (with a relatively higher mix of lower and higher wage occupations), lower wage Social Assistance, and higher wage Professional, Scientific & Technical Services. Of the lagging industries, three—Manufacturing, Mining & Logging, and Construction—are blue collar middle class wage industries, while the higher wage Finance & Insurance also remained in the minus column. Construction has overall improved but still remains 64,600 below the 2007 peak, and 111,100 (11%) below the previous high in 2006.
Job Gains by Wage Level
The following chart illustrates the trend for total wage and salary jobs by general wage level, according to the industry wage classification used previously in other Center analyses of this issue. As indicated, nearly half (47%) of net jobs growth since the recession has been in the lower wage industries. For the 12 months ending April 2018, lower wage industries accounted for about a quarter (26%) of new jobs, while middle class-blue collar jobs produced over a third (39%) as a result of improvements in Construction levels.
Two-Tier Economy Persists—Central Valley Unemployment Three Times as High as Bay Area
The level of unemployment rates (all data is not seasonally adjusted) continues to vary widely across the state, ranging from 2.5% in the Bay Area to three times as large at 7.5% in the Central Valley.
| Not Seasonally Adjusted | Unemployment Rate (%) April 2018 |
|---|---|
| California | 3.8 |
| Bay Area | 2.5 |
| Orange County | 2.6 |
| San Diego/Imperial | 3.4 |
| Sacramento | 3.4 |
| Inland Empire | 3.7 |
| Los Angeles | 3.9 |
| Central Sierra | 4.1 |
| Central Coast | 5.2 |
| Upstate California | 5.4 |
| Central Valley | 7.5 |
By Legislative District:
| Lowest 10 Unemployment Rates | |||||
|---|---|---|---|---|---|
| CD18 (Eshoo-D) | 2.0 | SD13 (Hill-D) | 1.8 | AD16 (Baker-R) | 1.8 |
| CD12 (Pelosi-D) | 2.0 | SD11 (Wiener-D) | 2.2 | AD22 (Mullin-D) | 1.8 |
| CD52 (Peters-D) | 2.1 | SD39 (Atkins-D) | 2.3 | AD24 (Berman-D) | 1.9 |
| CD17 (Khanna-D) | 2.2 | SD36 (Bates-R) | 2.3 | AD28 (Low-D) | 2.0 |
| CD14 (Speier-D) | 2.2 | SD37 (Moorlach-R) | 2.4 | AD17 (Chiu-D) | 2.1 |
| CD45 (Walters-R) | 2.3 | SD10 (Wieckowski-D) | 2.5 | AD77 (Maienschein-R) | 2.2 |
| CD49 (Issa-R) | 2.3 | SD07 (Glazer-D) | 2.5 | AD73 (Brough-R) | 2.2 |
| CD15 (Swalwell-D) | 2.3 | SD15 (Beall-D) | 2.5 | AD78 (Gloria-D) | 2.2 |
| CD48 (Rohrabacher-R) | 2.5 | SD34 (Nguyen-R) | 2.8 | AD19 (Ting-D) | 2.2 |
| CD02 (Huffman-D) | 2.7 | SD38 (Anderson-R) | 2.9 | AD25 (Chu-D) | 2.2 |
| Highest 10 Unemployment Rates | |||||
|---|---|---|---|---|---|
| CD03 (Garamendi-D) | 4.8 | SD24 (de León-D) | 4.6 | AD64 (Gipson-D) | 5.7 |
| CD09 (McNerney-D) | 5.3 | SD30 (Mitchell-D) | 4.7 | AD03 (Gallagher-R) | 5.9 |
| CD44 (Barragán-D) | 5.6 | SD04 (Nielsen-R) | 4.7 | AD13 (Eggman-D) | 6.4 |
| CD10 (Denham-R) | 5.8 | SD35 (Bradford-D) | 5.0 | AD23 (Patterson-R) | 6.4 |
| CD20 (Panetta-D) | 6.2 | SD05 (Galgiani-D) | 5.7 | AD34 (Fong-R) | 6.5 |
| CD51 (Vargas-D) | 7.0 | SD08 (Berryhill-R) | 5.9 | AD56 (Garcia-D) | 7.9 |
| CD23 (McCarthy-R) | 7.0 | SD40 (Hueso-D) | 6.0 | AD21 (Gray-D) | 8.4 |
| CD22 (Nunes-R) | 7.3 | SD16 (Fuller-R) | 6.8 | AD31 (Arambula-D) | 8.9 |
| CD16 (Costa-D) | 8.7 | SD12 (Cannella-R) | 7.6 | AD26 (Mathis-R) | 8.9 |
| CD21 (Valadao-R) | 9.6 | SD14 (Vidak-R) | 10.3 | AD32 (Salas-D) | 10.1 |
Bay Area Provided 39.5% of Net Employment Growth Since Recession
Containing 19.4% of the state’s population, the Bay Area was responsible for 39.5% of the net growth in employment since the pre-recession peaks in 2007. Los Angeles Region, containing 29.2% of the population, accounted for the second largest share at 20.2%. Inland Empire is the only other region continuing to show employment gains above their population share.
Eight California MSAs in the 10 Worst Unemployment Rates Nationally
According to BLS data, of the 10 Metropolitan Statistical Areas (MSAs) with the worst unemployment rates nationally, 8 are in California. Of the 20 worst, 10 are in California.
| Metropolitan Area | March 2018 Rate | Rank |
|---|---|---|
| Longview, WA Metropolitan Statistical Area | 6.7 | 368 |
| Fairbanks, AK Metropolitan Statistical Area | 6.9 | 370 |
| McAllen-Edinburg-Mission, TX Metropolitan Statistical Area | 6.9 | 370 |
| Modesto, CA Metropolitan Statistical Area | 6.9 | 370 |
| Anchorage, AK Metropolitan Statistical Area | 7.2 | 373 |
| Atlantic City-Hammonton, NJ Metropolitan Statistical Area | 7.2 | 373 |
| Yakima, WA Metropolitan Statistical Area | 7.6 | 375 |
| Vineland-Bridgeton, NJ Metropolitan Statistical Area | 7.7 | 376 |
| Watertown-Fort Drum, NY Metropolitan Statistical Area | 8.0 | 377 |
| Madera, CA Metropolitan Statistical Area | 8.2 | 378 |
| Fresno, CA Metropolitan Statistical Area | 8.7 | 379 |
| Yuba City, CA Metropolitan Statistical Area | 8.7 | 379 |
| Hanford-Corcoran, CA Metropolitan Statistical Area | 9.2 | 381 |
| Salinas, CA Metropolitan Statistical Area | 9.4 | 382 |
| Bakersfield, CA Metropolitan Statistical Area | 9.6 | 383 |
| Merced, CA Metropolitan Statistical Area | 10.2 | 384 |
| Visalia-Porterville, CA Metropolitan Statistical Area | 11.0 | 385 |
| Ocean City, NJ Metropolitan Statistical Area | 13.2 | 386 |
| Yuma, AZ Metropolitan Statistical Area | 13.6 | 387 |
| El Centro, CA Metropolitan Statistical Area | 15.3 | 388 |
Note: All data sources, methodologies, and historical data series available at CenterforJobs.org/ca.