02/08/2023

Reports » Job Reports

January 2015

Highlights for policy makers:

EDD Data Revisions

Employment Development Department (EDD) and Bureau of Labor Statistics (BLS) currently are in the process of benchmarking and revising their employment and labor force data. These revisions began with release of the January 2015 data and will continue to be rolled out over the next two upcoming data releases for February and March. Current analysis is limited primarily to comparison of the revised December 2014 and January 2015 data. Longer term analyses will be made as the additional data series are filled in.

Unemployment Rate Declines to 6.9%; Total Employment Climbs 54,000

The Labor Force data for January 2015 (seasonally adjusted; California preliminary) is shown below, along with the change from the prior month:

Seasonally Adjusted California US

Jan 2015 Change from Dec 2014 Jan 2015 Change from Dec 2014
Unemployment Rate 6.9 -0.2 5.7 0.1
Labor Force 18,936,200 0.1% 157,180,000 0.7%
Employment 17,620,300 0.3% 148,201,000 0.5%
Unemployment 1,315,900 -2.3% 8,979,000 3.3%

Source: California Employment Development Department; US Bureau of Labor Statistics

The related not seasonally adjusted numbers (California preliminary):

Not Seasonally Adjusted California US

Jan 2015 Jan 2015
Unemployment Rate 7.3 5.4
Labor Force 18,889,100 155,521,000
Employment 17,517,900 147,190,000
Unemployment 1,371,300 8,331,000

Source: California Employment Development Department; US Bureau of Labor Statistics

Employment Development Department’s (EDD) latest release shows on a seasonally adjusted basis, total employment grew by 54,000, while the number of unemployed dropped by 31,500. By comparison, total US employment increased more strongly by 759,000, while the number of unemployed grew by 291,000.

On a seasonally adjusted basis, improvement in the California unemployment rate came as more of the unemployed found employment. In sharp contrast, the US numbers showed the current employment situation drawing more workers—a gain of just over 1 million—back into the labor force. In our state, the California labor force remained essentially unchanged, gaining a seasonally adjusted total of only 22,500.

Nonfarm Jobs Increase 53,100

Based on the revised seasonally adjusted numbers, total nonfarm payroll jobs increased 53,100 from December 2014 to January 2015. Note that this number differs slightly from the EDD press release due to the fact that the data for Information (and therefore total Nonfarm Jobs) is lower in EDD’s subsequent data release.

Increases occurred in 11 industries led by Accommodation & Food Services (12,900), Construction (11,700), and Educational Services (11,300). Job declines took place in 7 industries, led by Manufacturing (-4,200), Administrative & Support & Waste Services (-4,200), and Wholesale Trade (-3,400).

Dec 2014 Jan 2015 Change Jan 2015–Dec 2014
Mining and Logging 31,100 30,700 -400
Construction 686,500 698,200 11,700
Manufacturing 1,271,700 1,267,500 -4,200
Wholesale Trade 728,600 725,200 -3,400
Retail Trade 1,651,000 1,656,100 5,100
Transportation, Warehousing and Utilities 534,700 535,800 1,100
Information 462,000 461,800 -200
Finance and Insurance 523,000 525,000 2,000
Real Estate and Rental and Leasing 270,000 272,800 2,800
Professional, Scientific & Technical Services 1,221,600 1,226,800 5,200
Management of Companies and Enterprises 226,400 229,200 2,800
Administrative & Support & Waste Services 1,045,400 1,041,200 -4,200
Educational Services 355,100 366,400 11,300
Health Care and Social Assistance 2,088,800 2,091,300 2,500
Arts, Entertainment, and Recreation 280,900 278,200 -2,700
Accommodation and Food Service 1,503,600 1,516,500 12,900
Other Services 548,600 548,200 -400
Government 2,431,700 2,442,900 11,200
Total Nonfarm 15,680,700 15,913,800 53,100

Source: California Employment Development Department, Seasonally Adjusted

Effect of EDD’s Job Revisions

The following chart shows the effect of EDD’s current benchmark revisions, comparing the not seasonally adjusted data from December 2014. The data compares the previous 2013 benchmark data to the newly revised 2014 benchmark data.

As indicated, the overall effect is to increase the jobs numbers by about 226,000. Subsequent EDD updates will indicate how this total has been redistributed over time.

By industry, the largest increases were in Government (56,800), Accommodation & Food Services (36,400), and Individual & Family Services (36,200), an industry dominated by the state-financed In-Home Supportive Services. Minor downward revisions were made in 4 industries, including a shift of 8,800 in Information.

The chart also shows the latest average annual wage for each industry, taken from the 2014Q2 data from the Quarterly Census of Employment & Wages. Using this data, 50% of the net job changes were made to jobs paying less than $40,000 a year, while relatively few net changes—6%—affected jobs paying more than $90,000 a year.

December 2014 Wage & Salary Data 2014 Benchmark 2013 Benchmark Change Average Annual Wage
Government 2,452,900 2,396,100 56,800 $60,500
Accommodation & Food Services 1,500,300 1,463,900 36,400 $20,100
Individual & Family Services (IFS) 580,500 544,300 36,200 $14,500
Other Services 544,800 514,900 29,900 $34,000
Manufacturing 1,264,600 1,246,600 18,000 $76,000
Transportation, Warehousing & Utilities 549,000 534,200 14,800 $55,700
Professional, Scientific & Technical Services 1,224,700 1,210,200 14,500 $96,900
Retail Trade 1,731,700 1,718,200 13,500 $33,100
Finance & Insurance 523,800 514,400 9,400 $91,900
Wholesale Trade 730,700 723,200 7,500 $68,000
Construction 681,800 676,700 5,100 $57,100
Real Estate & Rental & Leasing 270,200 265,800 4,400 $54,400
Educational Services 367,200 364,500 2,700 $47,400
Arts, Entertainment, & Recreation 276,600 275,700 900 $43,700
Mining & Logging 30,800 31,300 -500 $115,400
Management of Companies & Enterprises 228,300 229,900 -1,600 $107,100
Administrative & Support & Waste Services 1,050,600 1,054,000 -3,400 $38,400
Information 467,700 476,500 -8,800 $124,500
Health Care & Social Assistance, Less IFS 1,518,100 1,527,800 -9,700 $56,400
Total Wage & Salary 16,349,700 16,123,400 226,300  
Total Nonfarm 15,994,300 15,768,200 226,100  
Total Private 13,541,400 13,372,100 169,300  

Source: California Employment Development Department, Not Seasonally Adjusted; Wage Data from 2014Q2 Quarterly Census of Employment & Wages

21 Counties Remain in Double-Digit Unemployment, Up from a Revised 17 in December

Two-Tier Economy Persists

Unemployment rates and employment growth (all data is not seasonally adjusted) continue to vary widely across the state. Revisions to the preliminary December 2014 data show higher unemployment rates than previously reported in each of the regions with the exception of Bay Area (remained the same) and Inland Empire (dropped 0.2 points).

Not Seasonally Adjusted Unemployment Rate (%) Jan 2015 Revised Unemployment Rate (%) Dec 2014
California 7.3 6.8
Bay Area 4.4 4.6
Orange County 4.6 4.7
San Diego/Imperial 5.9 6.3
Sacramento Region 6.2 6.3
Inland Empire 7.0 7.0
Central Sierra 7.2 7.3
Los Angeles 7.3 7.4
Central Coast 8.5 8.9
Upsate California 8.8 8.9
Central Valley 10.9 11.0
Ratio of Highest to Lowest Rate 2.39 2.39

Net employment growth for the state as a whole is now positive, with a total increase of 689,700 between January 2007 and January 2015. However, this net growth has been heavily concentrated within specific regions, with the Bay Area alone accounting for 62% of the total employment growth while containing only 19% of the total population. Los Angeles, with 29% of the population, represents only 10% of total employment growth.

Source: California Employment Development Department, Department of Finance

By County:

Lowest 3 Unemployment Rates

San Mateo County 3.9
Marin County 4.0
San Francisco County 4.1

Highest 3 Unemployment Rates

Plumas County 14.6
Imperial County 21.3
Colusa County 23.2

Ratio of Highest to Lowest Rate: 5.95

By Legislative District:

Lowest 10 Unemployment Rates

SD 13 (Hill – D) 3.7 AD 22 (Mullin – D) 3.6
SD 11 (Leno – D) 4.2 AD 16 (Baker – R) 3.7
SD 37 (Walters – R) 4.2 AD 24 (Gordon – D) 3.8
SD 39 (Block – D) 4.7 AD 28 (Low – D) 3.9
SD 36 (Bates – R) 4.8 AD 77 (Maienschein – R) 4.1
SD 15 (Beall – D) 4.9 AD 19 (Ting – D) 4.2
SD 07 (DeSaulnier – D) 5.1 AD 17 (Chiu – D) 4.2
SD 10 (Wieckowski – D) 5.2 AD 74 (Harper – R) 4.2
SD 38 (Anderson – R) 5.6 AD 73 (Brough – R) 4.2
SD 29 (Huff – R) 5.6 AD 68 (Wagner – R) 4.2

Highest 10 Unemployment Rates

SD 30 (Mitchell – D) 9.2 AD 03 (Gallagher – R) 10.4
SD 33 (Lara – D) 9.4 AD 23 (Patterson – R) 10.5
SD 24 (de León – D) 9.4 AD 30 (Alejo – D) 10.9
SD 35 (Hall – D) 9.5 AD 13 (Eggman – D) 11.1
SD 16 (Fuller – R) 10.0 AD 64 (Gibson – D) 11.7
SD 08 (Berryhill – R) 10.1 AD 26 (Mathis – R) 13.5
SD 40 (Hueso – D) 10.3 AD 56 (Garcia – D) 13.6
SD 05 (Galgiani – D) 10.3 AD 32 (Salas – D) 13.7
SD 12 (Cannella – R) 12.9 AD 21 (Gray – D) 13.8
SD 14 (Vidak – R) 14.8 AD 31 (Perea – D) 14.1

Ratio of Highest to Lowest Rate: Senate 4.04
Ratio of Highest to Lowest Rate: Assembly 3.94

Data Revisions and Updates

Several of the data series in the Center’s Data Tool and Indicators have been updated and revised as a result of new population numbers released by Department of Finance and the 2009-2013 American Community Survey (ACS), along with the most recent revisions from EDD. Additional revisions will continue to be made as the subsequent EDD revisions are released. Until the final revisions are made in conjunction with the final EDD revisions scheduled for mid-April, some discontinuities will exist in the individual data series.