Key Highlights for Policy Makers:
- Unemployment Rate Down for February 2014
- Continued Lagging of Middle Class Job Growth
- Two-Tiered Economic Recovery Persists
- Personal Income Growth Slows
Unemployment Rate Down for February 2014
Last Friday (March 21), the California Employment Development Department (EDD) reported the seasonally adjusted labor force statistics for February 2014 (California preliminary). While the numbers likely still reflect the effects of the revisions released earlier this month by EDD, overall the results show continued positive improvements in total employment somewhat ahead of the national numbers.
Change shown below is from January 2014 (seasonally adjusted):
The related not seasonally adjusted numbers (California preliminary), with the change from February 2013:
Continued Lagging of Middle Class Job Growth
Jobs growth (not seasonally adjusted) continued to be positive over the past 12 months for most industries except Mining and Logging, Manufacturing, and Finance and Insurance. However, jobs growth continues to be concentrated in the higher wage
(Professional, Scientific and Technical Services) and lower wage (Accommodation and Food Service) industries. Just under ten percent of Total Nonfarm growth comes from Individual &. Family Services, the industry containing the IHSS (In Home Supportive Services) employment numbers added by EDD in their March 2014 revision.
2014 – Feb 2013 Change Feb
2014 – 2007 ave
Two-Tier Economy Continues
Unemployment rates and employment continue to vary widely across the state. By region (all data is not seasonally adjusted):
Rate (%) Feb 2014 Employment Change,
Feb 2014 – Feb 2013
By Legislative District:
Personal Income Growth Slows
Today, US Bureau of Economic Analysis released State Personal Income results for 2013. Personal income growth slowed for all states compared to 2012, with the average state personal income growth slowing to 2.6% in 2013 compared to 4.2% in 2012. Contributing to this slowdown was the expiration of the federal payroll tax holiday and the acceleration of the receipt of income in 2012 in anticipation of higher income tax rates.
For California, personal income growth was just above the national average at 2.8%, down from 5.0% in 2012 and 6.6% in 2011. Reflecting population growth and the continuing two-tier economic recovery, per capita income growth was 1.8% in 2013, down from 3.4% in 2012 and 5.3% in 2011. The 2.8% increase in total personal income is slightly ahead of the 2.6% rate contained in the Department of Finance’s most recent economic projections for 2013 in the State Budget. Finance is projecting a 4.6% increase in 2014.
In 2013, California had the 16th highest increase in total personal income and 20th highest increase in per capita personal income. The top 5 states in total personal income were North Dakota (7.6%), Utah (4.0%), Idaho (3.7%), Texas (3.7%), and Oregon (3.5%). The top 5 states in per capita personal income were North Dakota (4.1%), Vermont (2.8%), Oregon (2.7%), Iowa (2.7%), and Idaho (2.6%).