Download August 2018 Jobs Report
Highlights for policy makers:
- Unemployment Rate Level at 4.2%; Total Employment Up 7,300
- Labor Force Participation Rate Level at 61.9%
- State Employment Growth Rankings—California Remains at 5th
- Nonfarm Jobs Up 44,800
- Four Industries Still below 2007 Pre-Recession Job Levels
- Job Gains by Wage Level
- Two-Tier Economy Persists—Central Valley Unemployment More than Twice as High as Bay Area
- Bay Area Provided 40.4% of Net Employment Growth Since Recession
- Seven California MSAs in the 10 Worst Unemployment Rates Nationally
Unemployment Rate Level at 4.2%; Total Employment up 7,300
The Labor Force data for August 2018 (seasonally adjusted; California preliminary) is shown below, along with the change from the prior month:
| Seasonally Adjusted | California | US | ||
|---|---|---|---|---|
| Aug 2018 | Change from Jul 2018 | Aug 2018 | Change from Jul 2018 | |
| Unemployment Rate | 4.2% | 0.0 | 3.9% | -0.0 |
| Labor Force | 19,351,000 | 0.0% | 161,776,000 | -0.3% |
| Participation Rate | 61.9% | 0.0 | 62.7% | -0.2 |
| Employment | 18,547,900 | 0.0% | 155,542,000 | -0.3% |
| Unemployment | 803,100 | -0.6% | 6,234,000 | -0.7% |
The related not seasonally adjusted numbers (California preliminary), with the change from August 2017:
| Not Seasonally Adjusted | California | US | ||
|---|---|---|---|---|
| Aug 2018 | Change from Aug 2017 | Aug 2018 | Change from Aug 2017 | |
| Unemployment Rate | 4.3% | -0.6 | 3.9% | -0.6 |
| Labor Force | 19,368,100 | 0.0% | 161,909,000 | 0.7% |
| Participation Rate | 61.9% | -0.6 | 62.7% | -0.3 |
| Employment | 18,542,500 | 0.7% | 155,539,000 | 1.3% |
| Unemployment | 825,600 | -13.9% | 6,730,000 | -12.6% |
California Employment Development Department’s (EDD) latest data shows on a seasonally adjusted basis, total employment rose 7,300 from July, while the number of unemployed fell 4,400. The labor force notched up by 2,900.
California’s seasonally adjusted unemployment rate remained at 4.2%, the lowest level in the current data series that began in 1976. California tied with Maryland and New Jersey for the 13th highest unemployment rate among the states. The unadjusted rate dropped from 4.9% in August 2017 to 4.3%.
Total US employment saw a seasonally adjusted loss of 423,000 from July, while the number of unemployed dropped by 46,000 and the total labor force dipped by 469,000. The national unemployment rate remained level at 3.9%.
Labor Force Participation Rate Level at 61.9%
California’s participation rate (seasonally adjusted) in August remained at 61.9%, while the US rate dipped to 62.7%. The California rate continued to match the revised series low reached previously in 2015.
California’s labor force was essentially unchanged, dipping 8,400 over the year ending August 2018, or 0.1% growth. The US as a whole grew 1.0 million – a 0.7% expansion. While workers elsewhere continue to return to the workforce, California’s continued low rate has implications for future growth in the state, including the ability to sustain jobs expansion as fewer workers are available and continued effects on state and local budgets for higher social program spending compared to other states.
Considered by age, the prime working age groups in California (age 25-54 and 55-64) remain somewhat below their previous highs since 2000, with youth employment remaining below levels from a year ago. 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 higher labor force participation rate compared to the prior low at the beginning of this period.
Labor Force Participation Rate by Age (12-month moving average)
| Prior Max | August 2018 | |
|---|---|---|
| Total | 67.2% | 62.2% |
| 16-19 | 46.8% | 27.3% |
| 20-24 | 76.4% | 65.6% |
| 25-54 | 82.1% | 80.3% |
| 55-64 | 66.3% | 63.7% |
| Prior Min | ||
| 65+ | 12.1% | 19.7% |
State Employment Growth Rankings—California Remains at 5th
Change in Employment, August 2017 – August 2018
| Rank | Number of Employed | Percentage Change | Population Adjusted (employment growth per 1,000 civilian noninstitutional population) |
|---|---|---|---|
| 1 | TX 274,500 | MA 4.0% | MA 25.4 |
| 2 | FL 148,900 | NV 2.7% | CO 17.2 |
| 3 | MA 141,800 | NM 2.6% | NV 16.1 |
| 4 | GA 115,000 | CO 2.6% | DE 14.7 |
| 5 | CA 85,200 | DE 2.5% | DC 14.6 |
| 6 | CO 75,800 | GA 2.4% | GA 14.3 |
| 7 | NC 67,100 | DC 2.2% | NM 14.0 |
| 8 | IN 66,900 | ID 2.1% | ID 13.3 |
| 9 | VA 65,000 | TX 2.1% | IN 12.9 |
| 10 | MN 49,800 | IN 2.1% | TX 12.9 |
| 11 | AZ 49,200 | OK 1.9% | NH 11.5 |
| 12 | IL 41,400 | NH 1.7% | OK 11.4 |
| 13 | NV 37,900 | MN 1.7% | MN 11.4 |
| 14 | TN 37,300 | RI 1.7% | UT 11.3 |
| 15 | OK 34,200 | UT 1.7% | RI 10.3 |
| 16 | AL 32,100 | VA 1.6% | VA 9.8 |
| 17 | WA 31,400 | AZ 1.6% | AZ 9.0 |
| 18 | MI 31,000 | AL 1.5% | FL 8.8 |
| 19 | WI 28,100 | FL 1.5% | AL 8.4 |
| 20 | UT 25,400 | NC 1.4% | NC 8.3 |
| 21 | NM 22,700 | TN 1.2% | VT 7.2 |
| 22 | KY 21,000 | VT 1.1% | TN 7.1 |
| 23 | MO 20,100 | KY 1.1% | SD 6.8 |
| 24 | OH 19,200 | SD 1.0% | IA 6.4 |
| 25 | ID 17,400 | IA 1.0% | WI 6.1 |
| 26 | IA 15,800 | ME 1.0% | KY 6.0 |
| 27 | LA 15,800 | MS 0.9% | ME 5.9 |
| 28 | NH 12,700 | WI 0.9% | NE 5.7 |
| 29 | NY 12,700 | WA 0.9% | WA 5.4 |
| 30 | DE 11,300 | NE 0.9% | MS 4.9 |
| 31 | MS 11,200 | LA 0.8% | LA 4.4 |
| 32 | SC 9,300 | MO 0.7% | MO 4.2 |
| 33 | RI 8,900 | HI 0.7% | IL 4.1 |
| 34 | NE 8,400 | IL 0.7% | HI 4.1 |
| 35 | DC 8,300 | MI 0.7% | MI 3.9 |
| 36 | PA 7,100 | CA 0.5% | CA 2.7 |
| 37 | ME 6,500 | SC 0.4% | SC 2.4 |
| 38 | OR 4,600 | OH 0.3% | OH 2.1 |
| 39 | HI 4,500 | WV 0.3% | KS 1.6 |
| 40 | SD 4,500 | KS 0.3% | WV 1.5 |
| US 2,071,000 | US 1.3% | US 8.1 |
Between August 2017 and August 2018, Bureau of Labor Statistics (BLS) data shows the total number of employed in California increased by 85,200 (seasonally adjusted), or 4.1% of the total net employment gains in this period for the US. Based on the total numbers, California remained in 5th place behind Texas (which has a civilian working age population only 69% as large as California’s), Florida (55% as large), Massachusetts, and Georgia. Measured by percentage change in employment over the year, California stayed 36th highest. Adjusted for working age population, California was 36th as well.
Nonfarm Jobs Up 44,800
EDD reported that between July and August 2018, seasonally adjusted nonfarm wage and salary jobs grew by 44,800. July’s results were revised to a 34,400 gain from the previously reported 46,700.
In the not seasonally adjusted nonfarm numbers that allow a more detailed look at industry shifts, hiring saw increases in all but 5 industries over the year. The change in total payroll jobs from August 2017 saw the largest increases in lower wage Social Assistance (41,300), lower wage Food Services (41,100), and middle class wage Construction (41,000). Declines were led by Other Services (-600), Mining & Logging (-400), and Wholesale Trade (-200).
| Not Seasonally Adjusted Payroll Jobs | Aug 2018 | Jul 2018 | Change Aug 2018 – Jul 2018 | Change Aug 2018 – Aug 2017 |
|---|---|---|---|---|
| Total Farm | 481,700 | 479,000 | 2,700 | 5,300 |
| Mining and Logging | 22,600 | 22,700 | -100 | -400 |
| Construction | 877,100 | 865,700 | 11,400 | 41,000 |
| Manufacturing | 1,335,500 | 1,327,700 | 7,800 | 5,700 |
| Wholesale Trade | 727,100 | 724,900 | 2,200 | -200 |
| Retail Trade | 1,693,200 | 1,689,500 | 3,700 | 8,500 |
| Utilities | 58,100 | 58,100 | 0 | -100 |
| Transportation & Warehousing | 593,400 | 587,400 | 6,000 | 21,300 |
| Information | 546,500 | 543,200 | 3,300 | 15,100 |
| Finance & Insurance | 551,100 | 549,500 | 1,600 | 2,500 |
| Real Estate & Rental & Leasing | 288,200 | 286,500 | 1,700 | 1,500 |
| Professional, Scientific & Technical Services | 1,274,900 | 1,271,100 | 3,800 | 33,800 |
| Management of Companies & Enterprises | 235,400 | 236,300 | -900 | 3,500 |
| Administrative & Support & Waste Services | 1,144,900 | 1,132,100 | 12,800 | 29,100 |
| Educational Services | 352,700 | 356,400 | -3,700 | 15,100 |
| Health Care | 1,534,300 | 1,528,500 | 5,800 | 28,100 |
| Social Assistance | 818,600 | 797,600 | 21,000 | 41,300 |
| Arts, Entertainment & Recreation | 325,200 | 329,000 | -3,800 | 4,800 |
| Accommodation | 238,900 | 239,300 | -400 | 5,800 |
| Food Services | 1,471,000 | 1,477,300 | -6,300 | 41,100 |
| Other Services | 564,900 | 566,200 | -1,300 | -600 |
| Government | 2,473,400 | 2,449,600 | 23,800 | 36,100 |
| Total Nonfarm | 17,127,000 | 17,038,600 | 88,400 | 333,000 |
| Total Wage and Salary | 17,608,700 | 17,517,600 | 91,100 | 338,300 |
At a 348,900 increase, California remained at 2nd highest measured by seasonally adjusted nonfarm jobs among the states from August 2017 to August 2018, behind Texas at 394,500. By percentage growth in jobs, California dipped to 13th highest at 2.1%, but still above the US average. By population adjusted jobs growth, California rose to 15th highest.
Change in Nonfarm Jobs (seasonally adjusted), August 2017 – August 2018
| Rank | Number of Jobs | Employment Growth (%) | Population Adjusted (jobs growth per 1,000 civilian noninstitutional population) |
|---|---|---|---|
| 1 | TX 394,500 | UT 3.5% | UT 23.0 |
| 2 | CA 348,900 | NV 3.3% | NV 19.0 |
| 3 | FL 220,200 | WA 3.3% | WA 18.6 |
| 4 | WA 108,800 | TX 3.2% | TX 18.5 |
| 5 | NC 102,800 | ID 3.1% | ID 16.8 |
| 6 | OH 90,200 | AZ 2.9% | CO 16.4 |
| 7 | NY 90,200 | HI 2.7% | HI 16.2 |
| 8 | GA 88,900 | CO 2.7% | AZ 14.6 |
| 9 | AZ 79,700 | FL 2.6% | WY 14.5 |
| 10 | CO 72,200 | OR 2.4% | OR 13.3 |
| 11 | MA 68,100 | NC 2.3% | FL 13.0 |
| 12 | PA 65,400 | WY 2.3% | NC 12.8 |
| 13 | NJ 61,500 | CA 2.1% | MA 12.2 |
| 14 | MI 56,300 | GA 2.0% | KS 12.0 |
| 15 | TN 56,000 | OK 2.0% | CA 11.2 |
| 16 | VA 54,800 | NM 2.0% | GA 11.1 |
| 17 | UT 51,900 | SC 1.9% | OK 11.0 |
| 18 | IL 47,500 | KS 1.9% | NH 10.8 |
| 19 | NV 44,800 | MA 1.9% | TN 10.6 |
| 20 | OR 44,500 | TN 1.9% | SC 10.3 |
| 21 | MN 44,400 | NH 1.8% | DC 10.2 |
| 22 | WI 44,200 | OH 1.6% | MN 10.2 |
| 23 | SC 40,600 | MS 1.6% | NM 10.1 |
| 24 | MO 35,300 | MN 1.5% | OH 9.8 |
| 25 | OK 33,100 | WI 1.5% | NE 9.7 |
| US2,330,000 | US1.6% | US9.1 |
Four Industries Still below 2007 Pre-Recession Job Levels
Comparing the number of jobs by industry in August 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 continues to improve but still remains 42,700 below the 2007 level, and 89,200 (9.2%) below the previous high in 2006.
In addition, higher wage Utilities and middle class wage Real Estate, Rental, & Leasing continue near their 2007 levels, with a combined total of only 2,900 jobs in the plus column. In spite of trade jitters, blue collar-middle class wage Transportation & Warehousing continued growing.
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 (46%) of net jobs growth since the recession has been in the lower wage industries. For the 12 months ending August 2018, lower wage industries accounted for under a third (30%) of new jobs, while middle class-blue collar jobs produced over a quarter (28%) as Construction levels remained higher compared to prior years.
Two-Tier Economy Persists—Central Valley Unemployment More than Twice 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 2.9% in the Bay Area to more than twice as large at 6.7% in the Central Valley.
| Not Seasonally Adjusted | Unemployment Rate (%) August 2018 |
|---|---|
| California | 4.3 |
| Bay Area | 2.8 |
| Orange County | 3.1 |
| Sacramento | 3.8 |
| Central Coast | 3.9 |
| Central Sierra | 4.0 |
| San Diego/Imperial | 4.2 |
| Inland Empire | 4.5 |
| Upstate California | 4.8 |
| Los Angeles | 4.9 |
| Central Valley | 6.7 |
By Legislative District:
| Lowest 10 Unemployment Rates | |||||
|---|---|---|---|---|---|
| CD18 (Eshoo-D) | 2.1 | SD13 (Hill-D) | 2.1 | AD16 (Baker-R) | 2.0 |
| CD12 (Pelosi-D) | 2.2 | SD11 (Wiener-D) | 2.5 | AD22 (Mullin-D) | 2.0 |
| CD52 (Peters-D) | 2.5 | SD39 (Atkins-D) | 2.7 | AD24 (Berman-D) | 2.2 |
| CD17 (Khanna-D) | 2.5 | SD36 (Bates-R) | 2.7 | AD28 (Low-D) | 2.3 |
| CD14 (Speier-D) | 2.5 | SD37 (Moorlach-R) | 2.8 | AD17 (Chiu-D) | 2.4 |
| CD15 (Swalwell-D) | 2.6 | SD10 (Wieckowski-D) | 2.8 | AD77 (Maienschein-R) | 2.5 |
| CD45 (Walters-R) | 2.7 | SD07 (Glazer-D) | 2.8 | AD25 (Chu-D) | 2.5 |
| CD49 (Issa-R) | 2.7 | SD15 (Beall-D) | 2.8 | AD19 (Ting-D) | 2.5 |
| CD48 (Rohrabacher-R) | 2.9 | SD02 (McGuire-D) | 3.0 | AD73 (Brough-R) | 2.6 |
| CD02 (Huffman-D) | 2.9 | SD38 (Anderson-R) | 3.3 | AD78 (Gloria-D) | 2.6 |
| Highest 10 Unemployment Rates | |||||
|---|---|---|---|---|---|
| CD10 (Denham-R) | 5.5 | SD18 (Hertzberg-D) | 5.5 | AD13 (Eggman-D) | 6.1 |
| CD29 (Cárdenas-D) | 5.7 | SD05 (Galgiani-D) | 5.5 | AD51 (Carrillo-D) | 6.2 |
| CD43 (Waters-D) | 5.8 | SD33 (Lara-D) | 5.7 | AD36 (Lackey-R) | 6.3 |
| CD40 (Roybal-Allard-D) | 5.8 | SD24 (de León-D) | 5.7 | AD59 (Jones-Sawyer-D) | 6.6 |
| CD23 (McCarthy-R) | 6.4 | SD30 (Mitchell-D) | 5.9 | AD64 (Gipson-D) | 7.2 |
| CD22 (Nunes-R) | 6.6 | SD12 (Cannella-R) | 6.1 | AD21 (Gray-D) | 7.2 |
| CD44 (Barragán-D) | 7.0 | SD35 (Bradford-D) | 6.2 | AD31 (Arambula-D) | 7.8 |
| CD16 (Costa-D) | 7.3 | SD16 (Fuller-R) | 6.3 | AD26 (Mathis-R) | 8.4 |
| CD21 (Valadao-R) | 8.4 | SD40 (Hueso-D) | 7.7 | AD32 (Salas-D) | 8.7 |
| CD51 (Vargas-D) | 9.1 | SD14 (Vidak-R) | 9.1 | AD56 (Garcia-D) | 10.7 |
Bay Area Provided 41.1% of Net Employment Growth Since Recession
Containing 19.6% of the state’s population, the Bay Area was responsible for 41.1% 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 third largest share at 17.6%. Inland Empire is the only other region—at a growing margin—continuing to show employment gains above their population share. Based on the preliminary August numbers, Inland Empire has now eclipsed Los Angeles Region for employment growth compared to before the recession.
Seven 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, seven are in California. Of the 20 worst, nine are in California.
| Metropolitan Area | July 2018 Rate | Rank |
|---|---|---|
| Cumberland, MD-WV Metropolitan Statistical Area | 6.2 | 369 |
| Flint, MI Metropolitan Statistical Area | 6.2 | 369 |
| Shreveport-Bossier City, LA Metropolitan Statistical Area | 6.2 | 369 |
| Alexandria, LA Metropolitan Statistical Area | 6.3 | 372 |
| Beaumont-Port Arthur, TX Metropolitan Statistical Area | 6.3 | 372 |
| Weirton-Steubenville, WV-OH Metropolitan Statistical Area | 6.5 | 374 |
| Brownsville-Harlingen, TX Metropolitan Statistical Area | 6.6 | 375 |
| Hammond, LA Metropolitan Statistical Area | 6.6 | 375 |
| Yuba City, CA Metropolitan Statistical Area | 6.6 | 375 |
| Modesto, CA Metropolitan Statistical Area | 6.7 | 378 |
| McAllen-Edinburg-Mission, TX Metropolitan Statistical Area | 6.9 | 379 |
| Madera, CA Metropolitan Statistical Area | 7.0 | 380 |
| Vineland-Bridgeton, NJ Metropolitan Statistical Area | 7.0 | 380 |
| Fresno, CA Metropolitan Statistical Area | 7.2 | 382 |
| Hanford-Corcoran, CA Metropolitan Statistical Area | 7.5 | 383 |
| Merced, CA Metropolitan Statistical Area | 8.1 | 384 |
| Bakersfield, CA Metropolitan Statistical Area | 8.2 | 385 |
| Visalia-Porterville, CA Metropolitan Statistical Area | 9.3 | 386 |
| El Centro, CA Metropolitan Statistical Area | 19.3 | 387 |
| Yuma, AZ Metropolitan Statistical Area | 20.9 | 388 |
Note: All data sources, methodologies, and historical data series available at CenterforJobs.org/ca.