11/23/2024

Reports » Job Reports

February 2014

Key Highlights for Policy Makers:

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):

California US

February 2014 Change from Jan 2014 February 2014 Change from Jan 2014
Unemployment Rate 8.0% -0.1% 6.7% +0.1%
Labor Force 18.6 mil +0.2% 155.7 mil +0.2%
Employment 17.1 mil +0.3% 145.3 mil +0.0%
Unemployment 1.5 mil -0.6% 10.5 mil +2.2%

The related not seasonally adjusted numbers (California preliminary), with the change from February 2013:

California US

February 2014 Change from Feb 2013 February 2014 Change from Feb 2013
Unemployment Rate 8.5% -1.2% 7.0% -1.1%
Labor Force 18.6 mil +0.1% 155.0 mil +0.2%
Employment 17.0 mil +1.4% 144.1 mil +1.3%
Unemployment 1.6 mil -12.5% 10.9 mil -12.9%

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.

Feb 2014 Change Feb
2014 – Feb 2013 Change Feb
2014 – 2007 ave
Total Farm 345,400 7,400 -38,300
Mining and Logging 29,600 -100 2,900
Construction 643,200 36,700 -249,400
Manufacturing 1,238,200 -100 -226,200
Wholesale Trade 706,900 21,500 -8,400
Retail Trade 1,592,600 27,800 -97,300
Transportation, Warehousing and Utilities 504,800 11,000 -2,900
Information 452,800 10,700 -18,300
Finance and Insurance 518,500 -7,000 -94,600
Real Estate and Rental and Leasing 259,300 6,400 -24,200
Professional, Scientific and Technical Services 1,173,300 47,900 113,200
Management of Companies and Enterprises 221,300 8,100 62,300
Administrative and Support and Waste Services 984,900 38,200 -14,000
Educational Services 365,200 11,300 75,900
Health Care and Social Assistance 2,002,400 64,100 378,500
Individual & Family Services 526,400 33,600 197,700
Arts, Entertainment & Recreation 259,200 5,000 7,100
Accommodation & Food Service 1,404,000 45,700 95,700
Other Services 516,700 8,700 4,500
Government 2,401,100 9,700 -93,500
Total Nonfarm 15,274,000 345,600 -136,800
Total Wage & Salary 15,619,400 353,000 -175,000

Two-Tier Economy Continues

Unemployment rates and employment continue to vary widely across the state. By region (all data is not seasonally adjusted):

Region Unemployment
Rate (%) Feb 2014 Employment Change,
Feb 2014 – Feb 2013
Statewide 8.5% +232,910
Orange County 5.8 +15,100
Bay Area 6.2 +71,200
San Diego/Imperial 7.6 +15,800
Sacramento Region 8.2 +2,460
Los Angeles 8.7 +80,200
Inland Empire 9.4 +27,500
Central Sierra 9.6 +900
Central Coast 10.7 +9,100
Upstate California 11.6 +6,450
Central Valley 13.6 +13,300

By County:

Lowest 3 Unemployment Rates

Marin County 4.8%
San Mateo County 5.0%
San Francisco 5.2%

Highest 3 Unemployment Rates

Sutter County 16.8%
Imperial County 21.0%
Colusa County 24.2%

By Legislative District:

Lowest 3 Unemployment Rates

Senate Assembly

SD 13 (Hill-D) 4.9% AD 74 (Mansoor-R) 4.7%
SD 37 (Walters-R) 5.0% AD 22 (Mullin-D) 4.7%
SD 11 (Leno-D) 5.3% AD 16 (Joan Buchanan-D) 4.8%

Highest 3 Unemployment Rates

Senate Assembly

SD 5 (Galgiani-D) 12.9% AD 32 (Rudy Salas-D) 15.2%
SD 12 (Cannella-R) 14.7% AD 31 (Perea-D) 15.7%
SD 14 (BerryHill-R) 16.5% AD 21 (Gray-D) 16.1%

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%).