04/10/2021

Reports » Job Reports

January 2014

Key Highlights for Policy Makers:

Unemployment Rate Down for January 2014

The March 7th Employment Development Department (EDD) report included the seasonally adjusted labor force statistics for January 2014 (California preliminary).

Change shown below is from December 2013:

California US

Jan 2014 % Change Dec 2013 Jan 2014 % Change from Jan 2013
Unemployment Rate 8.1% -0.2% 6.6% -0.1%
Labor Force 18.6 mil +0.1% 155.5 mil +0.3%
Employment 17.1 mil +0.3% 145.2 mil +0.4%
Unemployment 1.5 mil -1.9% 10.22 mil -1.1%

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

California US

Jan 2014 % Change Dec 2013 Jan 2014 % Change from Jan 2013
Unemployment Rate 8.5% -1.8% 7.0% -1.15%
Labor Force 18.6 mil -0.3% 154.4 mil -0.3%
Employment 17.0 mil +1.7% 143.5 mil +1.4%
Unemployment 1.6 mil -17.4% 10.9 mil -17.6%

Jan 2014 Change Jan
2014 – Jan 2013
Change Jan
2014 – Jan 2007
Total Farm 414,700 17,000 33,900
Mining and Logging 30,700 -100 4,800
Construction 647,800 27,300 -267,200
Manufacturing 1,252,000 1,600 -223,400
Wholesale Trade 704,800 16,700 -5,000
Retail Trade 1,608,700 23,500 -85,300
Transportation, Warehousing and Utilities 514,300 17,100 10,400
Information 450,900 12,200 -12,400
Finance and Insurance 520,100 -5,000 -109,400
Real Estate and Rental and Leasing 259,100 3,400 -25,100
Professional, Scientific and Technical Services 1,158,000 39,900 120,500
Management of Companies and Enterprises 222,700 9,900 14,400
Administrative and Support and Waste Services 1,000,200 40,500 -8,300
Educational Services 353,800 13,400 70,800
Health Care and Social Assistance 1,985,900 51,000 392,000
Arts, Entertainment & Recreation 268,000 5,200 18,500
Accommodation & Food Service 1,422,800 47,200 127,600
Other Services 522,500 11,800 12,800
Government 2,369,700 3,900 -108,900
Total Nonfarm 15,292,000 319,500 -73,400
Total Wage & Salary 15,706,700 336,500 -39,300

Jobs Increase but Continued Lagging of Middle Class Job Growth

The absence of recovery in middle class jobs – in particular, blue collar middle class jobs – is shown by comparing the latest industry data with the pre-recession January 2007 industry jobs structure for the state. Even with the positive growth in the last 12 months, two key middle-class jobs sectors (Construction and Manufacturing) have produced a net loss of 490,600 jobs.

The net loss of 109,400 jobs in Finance and Insurance reflects both reductions from the financial crisis along with continued shifting of middle class back office jobs to lower cost states.

Instead, job growth is occurring in either lower wage or high income job sectors. There has been a net growth of 120,500 high wage jobs in Professional, Scientific and Technical Services. Health Care and Social Assistance and Accommodation and Food Service – two sectors with lower income pay and many part-time workers – have grown by a net 519,600 jobs. In sum, many middle class Californians are not skilled enough for the technical jobs that are being generated, and are forced to turn to lower income work or part-time pay in other sectors.

Increase from IHSS Jobs. The largest increase from the revisions stems from the addition of IHSS jobs to Individual and Family Services under Health Care and Social Services. EDD indicates that these jobs previously were not covered within the scope of the CES survey (Current Employment Survey). Supported through government funding, the IHSS Jobs produced an increase in both this industry and total Private Jobs.

While seasonally adjusted data is unavailable from EDD, the not seasonally adjusted data shows the effect of this change. Comparing BLS and EDD data, adding IHSS jobs increases total California Private Jobs by about 400,000 in December 2013, with corresponding increases in prior years as a result of the revisions.

Of the 392,000 Health Care and Social Assistance jobs created between January 2007 and January 2014, about 170,000 are the result of adding IHSS jobs to the data. Using annual numbers as of December from BLS (the latest available), most or all of the annual growth (Jan 2013 to Jan 2014) shown for Health Care and Social Assistance appears to be due to the addition of the IHSS data.

Population Growth. The revised EDD data shows that California is near to regaining the prerecession job level for Total Wage and Salary. However, Department of Finance estimates indicate the California population has increased 5.3% within this time period. Even adjusting for the currently lower Labor Force Participation Rate, sustained job growth at or beyond the last 12 months’ rate will be needed to produce lower unemployment rates.

Two-Tiered Economic Recovery Persists

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

Region Unemployment
Rate (%) Jan 2014
Employment Change,
Jan 2014 – Jan 2013
Orange County 5.8% +77,300
Bay Area 6.2% +14,300
San Diego/Imperial 7.7% +1,050
Sacramento Region 8.2% +18,600
Los Angeles 8.8% +29,200
Inland Empire 9.5% +90,100
Central Sierra 9.6% +22,100
Central Coast 10.7% +5,760
Upstate California 11.5% +16,800
Central Valley 13.5% +7,690

Lowest Unemployment Rates by County

Marin County 4.7%
San Mateo County 4.9%
San Francisco 5.3%

Highest Unemployment Rates by County

Sutter County 16.2%
Imperial County 22.0%
Colusa County 25.9%

Lowest Unemployment Rates by Legislative District

Senate Assembly

SD 13 (Hill-D) 4.8% AD 22 (Mullin-D) 4.6%
SD 37 (Walters-R) 5.0% AD 74 (Mansoor-R) 4.6%
SD 11 (Leno-D) 5.4% AD 73 (Harkey-R) 4.8%

Highest Unemployment Rates by Legislative District

Senate Assembly

SD 5 (Galgiani-D) 12.9% AD 56 (Perez-D) 15.3%
SD 12 (Cannella-R) 14.6% AD 31 (Perea-D) 15.8%
SD 14 (BerryHill-R) 16.4% AD 21 (Gray-D) 16.0%