01/16/2019

Reports » Job Reports

February 2018 Jobs Report

Highlights for policy makers:

Unemployment Rate Improves to 4.3%; Total Employment Gains 12,800

The Labor Force data for February 2018 (seasonally adjusted; California preliminary) is shown below, along with the change from the prior month:

Seasonally Adjusted California US
Feb 2018 Change from Jan 2018 Feb 2018 Change from Jan 2018
Unemployment Rate 4.3% -0.1 4.1% 0.0
Labor Force 19,393,000 0.0% 161,921,000 0.5%
Participation Rate 62.3% 0.0 63% 0.3
Employment 18,549,500 0.1% 155,215,000 0.5%
Unemployment 843,400 -1.0% 6,706,000 0.3%
Source: California Employment Development Department; US Bureau of Labor Statistics

 

The related not seasonally adjusted numbers (California preliminary), with the change from February 2017:

Not Seasonally Adjusted California US
Feb 2018 Change from Feb 2017 Feb 2018 Change from Feb 2017
Unemployment Rate 4.5% -0.9 4.4% -0.5
Labor Force 19,419,500 0.9% 161,494,000 1.3%
Participation Rate 62.3% 0.0 62.9% 0.2
Employment 18,537,500 1.8% 154,403,000 1.9%
Unemployment 882,100 -15.5% 7,091,000 -10.1%
Source: California Employment Development Department; US Bureau of Labor Statistics

 

California Employment Development Department’s (EDD) latest data shows on a seasonally adjusted basis, total employment was up 12,800 from January, while the number of unemployed dropped by 8,900. The labor force essentially stayed level with a rise of only 3,900.

California’s seasonally adjusted unemployment rate improved to 4.3%, the lowest in the current data series that began in 1976, compared to January’s revised level of 4.4%. California had the 22nd highest unemployment rate among the states. The unadjusted rate dropped from 5.4% in February 2017 to 4.5%.

Total US employment saw a seasonally adjusted gain of 785,000 from January, while the number of unemployed grew by 22,000. The national unemployment rate was steady at 4.1%. The national labor force numbers rose by 806,000.

The updates reflect the annual revisions to the labor force numbers. Due to a revised seasonal adjustment procedure, the state and US numbers were revised beginning in 1976. The unadjusted series—used to compare the California geographic areas including the legislative district estimates—were revised beginning with 2010.

Labor Force Participation Rate Level

California’s participation rate (seasonally adjusted) in February remained level at 62.3%, while the US rate rose to 63.0%. The revised California rate is improved from the revised series low from 2015, but now matches levels previously seen in 1976.

State Employment Growth Rankings

Change in Employment, February 2017 – February 2018
Rank Number of Employed Percentage Change Population Adjusted
(employment growth per 1,000 civilian
noninstitutional population)
1 CA 321,600 ID 3.2% ID 20.0
2 TX 274,200 CO 2.9% CO 19.2
3 FL 190,800 GA 2.6% UT 17.1
4 GA 125,400 NV 2.6% GA 15.7
5 CO 83,600 UT 2.6% NV 15.1
6 AZ 79,600 AZ 2.6% AZ 14.7
7 NC 78,100 TN 2.5% TN 14.6
8 TN 76,900 OR 2.4% OR 14.4
9 WA 75,700 WA 2.2% WA 13.1
10 VA 52,000 TX 2.1% TX 13.0
11 OR 47,600 LA 2.1% LA 11.7
12 MN 44,300 FL 2.0% FL 11.3
13 LA 42,000 CA 1.8% CA 10.4
14 UT 38,200 NC 1.7% MN 10.2
15 WI 35,600 OK 1.6% NC 9.8
16 NV 35,200 MN 1.5% OK 9.2
17 OH 32,000 NM 1.5% DC 8.1
18 MA 31,800 KY 1.3% NM 8.0
19 MI 27,600 VA 1.3% VA 7.9
20 OK 27,500 DC 1.2% WI 7.8
21 ID 25,800 WI 1.2% KY 7.3
22 KY 25,300 AL 0.9% MA 5.7
23 IL 24,200 SC 0.9% SD 5.2
24 SC 20,000 MA 0.9% AL 5.1
25 AL 19,500 DE 0.8% SC 5.1
26 NY 17,500 SD 0.8% DE 5.0
27 MD 15,600 WV 0.7% RI 4.5
28 IN 13,600 RI 0.7% VT 4.3
29 NM 13,000 VT 0.7% WV 3.8
30 WV 5,500 MI 0.6% ME 3.6
31 DC 4,600 OH 0.6% OH 3.5
32 NE 4,400 ME 0.6% MI 3.5
33 ME 3,900 MD 0.5% MD 3.3
34 RI 3,900 MT 0.5% MT 3.0
35 DE 3,800 NE 0.5% NE 3.0
36 SD 3,400 IN 0.4% IN 2.6
37 AR 3,000 IL 0.4% IL 2.4
38 MS 2,800 NH 0.3% NH 2.2
39 MT 2,500 AR 0.2% AR 1.3
40 NH 2,400 MS 0.2% MS 1.2
US 2,704,000 US 1.8% US 10.6
Source: US Bureau of Labor Statistics, Seasonally Adjusted

 

Between February 2017 and February 2018, Bureau of Labor Statistics (BLS) data shows the total number of employed in California increased by 321,600 (seasonally adjusted), or 11.9% of the total net employment gains in this period for the US. Based on the total numbers, California returned to 1st place ahead of Texas (which has a civilian working age population only 69% as large as California’s) at 274,200 and Florida (55% as large) at 190,800. Measured by percentage change in employment over the year, California improved to 13th highest. Adjusted for working age population, California also rose to 13th. All numbers reflect this year’s revisions to the labor force data.

Nonfarm Jobs Up 14,000

EDD reported that between January and February 2018, seasonally adjusted nonfarm wage and salary jobs grew 14,000. January’s gains were revised to 48,900 from the previously reported 44,300.

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 February 2017 saw the largest increases in Construction (73,500), Social Assistance (41,900), and Health Care (37,200). Declines were in Information (-5,300) and Utilities (-1,100).

Not Seasonally Adjusted Payroll Jobs Feb 2018 Jan 2018 Change Feb 2018 – Jan 2018 Change Feb 2018 – Feb 2017
Total Farm 357,200 358,300 -1,100 10,400
Mining and Logging 21,200 21,400 -200 500
Construction 834,500 813,500 21,000 73,400
Manufacturing 1,312,100 1,303,000 9,100 10,400
Wholesale Trade 724,100 721,800 2,300 8,800
Retail Trade 1,682,100 1,718,500 -36,400 17,500
Utilities 57,900 57,900 0 -1,100
Transportation & Warehousing 574,500 579,700 -5,200 28,600
Information 531,900 522,800 9,100 -5,300
Finance & Insurance 549,000 548,000 1,000 2,500
Real Estate & Rental & Leasing 284,900 285,000 -100 7,500
Professional, Scientific & Technical Services 1,246,400 1,236,600 9,800 33,300
Management of Companies & Enterprises 232,300 233,200 -900 1,100
Administrative & Support & Waste Services 1,103,000 1,090,500 12,500 25,900
Educational Services 384,000 369,300 14,700 14,300
Health Care 1,520,200 1,516,800 3,400 37,200
Social Assistance 800,600 794,100 6,500 41,900
Arts, Entertainment & Recreation 304,900 300,600 4,300 14,600
Accommodation 228,100 226,600 1,500 6,700
Food Services 1,421,200 1,404,400 16,800 37,200
Other Services 558,900 557,200 1,700 4,100
Government 2,595,600 2,574,000 21,600 32,000
Total Nonfarm 16,967,400 16,874,900 92,500 391,100
Total Wage and Salary 17,324,600 17,233,200 91,400 401,500
Source: California Employment Development Department

 

At 383,600, California showed the highest increase in seasonally adjusted nonfarm jobs among the states from February 2017 to February 2018, ahead of Texas at 285,200. By percentage growth in jobs, California rose to 8th highest at 2.3%, above the US average of 1.6%. By population adjusted jobs growth, California rose to 9th highest.

Change in Nonfarm Jobs (seasonally adjusted), February 2017 – February 2018
Rank Number of Jobs Employment Growth (%) Population Adjusted
(job growth per 1,000 civilian
noninstitutional population)
1 CA 383,600 ID 3.4% UT 20.7
2 TX 285,200 NV 3.2% ID 18.6
3 FL 167,800 UT 3.2% NV 18.5
4 NY 109,600 WA 2.9% WA 16.7
5 WA 96,800 CO 2.4% CO 14.5
6 GA 88,200 TX 2.3% TX 13.5
7 PA 81,400 OR 2.3% OR 13.2
8 NC 71,300 CA 2.3% DC 12.5
9 CO 63,400 AZ 2.3% CA 12.4
10 NJ 63,200 GA 2.0% AZ 11.4
11 AZ 61,900 FL 2.0% GA 11.1
12 MI 52,000 OK 1.9% WY 10.5
13 IL 48,700 WY 1.7% OK 10.5
14 OH 46,500 NC 1.6% FL 10.0
15 UT 46,200 SC 1.6% SD 9.3
16 TN 45,000 NJ 1.5% NC 8.9
17 OR 43,700 TN 1.5% NJ 8.8
18 NV 43,000 SD 1.4% SC 8.6
19 MA 39,100 NH 1.4% NH 8.6
20 VA 36,300 PA 1.4% TN 8.6
21 SC 33,800 HI 1.4% HI 8.1
22 OK 31,300 NM 1.4% PA 7.9
23 IN 30,900 RI 1.3% RI 7.3
24 MO 27,300 MS 1.2% MA 7.0
25 ID 24,000 MI 1.2% NM 7.0
26 MN 21,700 NY 1.2% NY 6.9
27 WI 19,200 MT 1.1% MI 6.6
28 AL 16,900 MA 1.1% MT 6.4
29 MS 14,300 IN 1.0% MS 6.3
30 NM 11,300 WV 1.0% IN 6.0
31 IA 9,900 MO 1.0% MO 5.7
32 NH 9,400 VA 0.9% VA 5.5
33 HI 8,900 DC 0.9% OH 5.1
US 2,281,000 US 1.6% US 9.0
Source: US Bureau of Labor Statistics

Four Industries Below 2007 Pre-Recession Job Levels

Source: California Employment Development Department, not seasonally adjusted; wages are running 4 quarter average from QCEW wage data

Comparing the number of jobs by industry in February 2018 (not seasonally adjusted), 4 industries had employment below the 2007 pre-recession levels. The highest gain industries were led by Health Care (with a relatively higher mix of lower and higher wage occupations), lower wage Food Services and 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 losses, however, have continued to contract but still remain 45,400 below the 2007 level, and 131,800 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, over half (57%) of net jobs growth since the recession has been in the lower wage industries. For the 12 months ending February 2018, lower wage industries accounted just under a third (29%) of new jobs, while middle class-blue collar jobs produced just over another third (36%) as a result of improvements in Construction.

Source: Analysis of California Employment Development Department data, not seasonally adjusted

Two-Tier Economy Persists—Central Valley Unemployment Nearly 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 3.0% in the Bay Area to nearly three times as large at 8.9% in the Central Valley.

Not Seasonally Adjusted Unemployment Rate (%) February 2018
California 4.5
Bay Area 3.0
Orange County 3.1
San Diego/Imperial 4.0
Sacramento 4.2
Inland Empire 4.4
Los Angeles 4.5
Central Sierra 5.0
Upstate California 6.6
Central Coast 7.2
Central Valley 8.9

By Legislative District:

Lowest 10 Unemployment Rates
CD18 (Eshoo-D) 2.4 SD13 (Hill-D) 2.2 AD22 (Mullin-D) 2.1
CD12 (Pelosi-D) 2.4 SD11 (Wiener-D) 2.6 AD16 (Baker-R) 2.1
CD52 (Peters-D) 2.6 SD39 (Atkins-D) 2.7 AD24 (Berman-D) 2.3
CD14 (Speier-D) 2.6 SD36 (Bates-R) 2.7 AD28 (Low-D) 2.5
CD45 (Walters-R) 2.7 SD37 (Moorlach-R) 2.8 AD17 (Chiu-D) 2.6
CD17 (Khanna-D) 2.7 SD10 (Wieckowski-D) 3.0 AD77 (Maienschein-R) 2.6
CD49 (Issa-R) 2.7 SD07 (Glazer-D) 3.0 AD73 (Brough-R) 2.6
CD15 (Swalwell-D) 2.7 SD15 (Beall-D) 3.1 AD78 (Gloria-D) 2.6
CD48 (Rohrabacher-R) 2.9 SD34 (Nguyen-R) 3.3 AD19 (Ting-D) 2.7
CD02 (Huffman-D) 3.3 SD38 (Anderson-R) 3.4 AD25 (Chu-D) 2.7
Highest 10 Unemployment Rates
CD03 (Garamendi-D) 6.0 SD30 (Mitchell-D) 5.3 AD03 (Gallagher-R) 7.3
CD44 (Barragán-D) 6.3 SD17 (Monning-D) 5.4 AD34 (Fong-R) 7.6
CD09 (McNerney-D) 6.5 SD35 (Bradford-D) 5.6 AD13 (Eggman-D) 7.7
CD10 (Denham-R) 6.9 SD04 (Nielsen-R) 5.8 AD30 (Caballero-D) 7.8
CD51 (Vargas-D) 8.1 SD05 (Galgiani-D) 6.9 AD23 (Patterson-R) 7.8
CD23 (McCarthy-R) 8.2 SD40 (Hueso-D) 7.0 AD56 (Garcia-D) 9.0
CD20 (Panetta-D) 8.7 SD08 (Berryhill-R) 7.1 AD21 (Gray-D) 10.1
CD22 (Nunes-R) 8.9 SD16 (Fuller-R) 8.1 AD31 (Arambula-D) 10.7
CD16 (Costa-D) 10.4 SD12 (Cannella-R) 9.7 AD26 (Mathis-R) 10.9
CD21 (Valadao-R) 11.3 SD14 (Vidak-R) 12.2 AD32 (Salas-D) 11.7

Bay Area Provided 39% of Net Employment Growth Since Recession

Containing 19.4% of the state’s population, the Bay Area was responsible for 39.1% 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 second largest share at 19.0%. Inland Empire is the only other region continuing to show employment gains above their population share, while the revised numbers show Central Valley matching its population share.

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, 7 are in California. Of the 20 worst, 10 are in California.

Rank Metropolitan Area January 2018 Rate
368 Modesto, CA Metropolitan Statistical Area 7.4
368 Weirton-Steubenville, WV-OH Metropolitan Statistical Area 7.4
371 Fairbanks, AK Metropolitan Statistical Area 7.5
372 McAllen-Edinburg-Mission, TX Metropolitan Statistical Area 7.6
373 Atlantic City-Hammonton, NJ Metropolitan Statistical Area 7.7
374 Youngstown-Warren-Boardman, OH-PA Metropolitan Statistical Area 7.8
375 Madera, CA Metropolitan Statistical Area 8.0
376 Vineland-Bridgeton, NJ Metropolitan Statistical Area 8.1
377 Watertown-Fort Drum, NY Metropolitan Statistical Area 8.4
378 Yuba City, CA Metropolitan Statistical Area 8.6
379 Fresno, CA Metropolitan Statistical Area 8.7
380 Hanford-Corcoran, CA Metropolitan Statistical Area 9.0
381 Bakersfield, CA Metropolitan Statistical Area 9.2
382 Yakima, WA Metropolitan Statistical Area 9.4
383 Salinas, CA Metropolitan Statistical Area 9.5
384 Merced, CA Metropolitan Statistical Area 9.9
385 Visalia-Porterville, CA Metropolitan Statistical Area 10.9
386 Ocean City, NJ Metropolitan Statistical Area 14.4
387 Yuma, AZ Metropolitan Statistical Area 14.6
388 El Centro, CA Metropolitan Statistical Area 17.0

 

Note: All data sources, methodologies, and historical data series available at CenterforJobs.org.