02/04/2023

Reports » Job Reports

January 2017 Job Report

 Highlights for policy makers:

Employment Development Department and Bureau of Labor Statistics are currently going through their annual data revision process.  The Center’s data series and data estimates will be updated as the revisions become available, with the final revisions released in late April.  Until the process is completed, however, some of the historical comparisons will remain incomplete.

Unemployment Rate Eases to 5.1%; Total Employment Up 11,000

The Labor Force data for Janurary 2017 (seasonally adjusted; California preliminary) is shown below, along with the change from the prior month:

Seasonally Adjusted California US
Jan 2017 Change from Dec 2016 Jan 2017 Change from Dec 2016
Unemployment Rate 5.1 -0.1 4.8 0.1
Labor Force 19,162,500 0.0% 159,716,000 0.0%
Participation Rate N/A N/A 62.9 .2
Employment 18,176,000 0.1% 151,081,000 0.0%
Unemployment 986,500 -1.3% 7,635,000 1.4%
Source: California Employment Development Department; US Bureau of Labor Statistics

The related not seasonally adjusted numbers (California preliminary), with the change from January 2016:

Not Seasonally Adjusted California US
Jan 2017 Change from Jan 2016 Jan 2017 Change from Jan 2016
Unemployment Rate 5.5 -0.3 5.1 -0.2
Labor Force 19,082,500 0.7% 159,676,000 0.8%
Participation Rate N/A N/A 62.5 0.2
Employment 18,033,300 1.1% 150,527,00 1.0%
Unemployment 1,049,200 -5.2% 8,149,000 -1.9%
Source: California Employment Development Department; US Bureau of Labor Statistics

California Employment Development Department’s (EDD) latest release shows on a seasonally adjusted basis, total employment rose 11,000 from December 2016, while the number of unemployed declined by 12,500.  Total labor force remained largely unchanged with a dip of only 2,500.

Total US employment saw a seasonally adjusted increase of 30,000 from December, while the number of unemployed increased by 106,000 as additional workers were drawn back into the labor force.  The national unemployment rate rose 0.1 point to 4.8%.

Nonfarm Jobs Increase 3,700

EDD reported that between December 2016 and January 2017, seasonally adjusted nonfarm wage and salary jobs grew 9,700 in January.  December’s gains were revised up marginally to 4,400 from the previously reported gain of 3,700.

Looking at the not seasonally adjusted numbers, job levels saw their usual seasonal drop-off from December 2016 to January 2017.  Over the year, hiring saw increases in all but two industries.  The change in total payroll jobs from January 2016 saw the largest increases in Health Care & Social Assistance (75,900), Government (50,100), and Accommodation & Food Services (36,200).  Declines were in Manufacturing (-5,800) and Mining & Logging (-3,300).

Not Seasonally Adjusted Payroll Jobs Dec 2016 Jan 2016 Change Jan 2017 – Dec 2016 Change Jan 2017 – Jan 2016
Total Farm 362,100 361,000 -1,100 10,100
Mining & Logging 23,100 22,400 -700 -3,300
Construction 774,000 746,100 -28,100 8,800
Manufacturing 1,298,400 1,286,900 -11,500 -5,800
Wholesale Trade 733,000 725,400 -7,600 12,000
Retail Trade 1,776,900 1,687,300 -89,600 16,500
Transportation, Warehousing & Utilities 611,900 587,000 -24,900 18,900
Information 524,900 518,000 -6,900 9,700
Finance & Insurance 551,200 548,400 -2,800 10,900
Real Estate & Rental & Leasing 283,600 279,400 -4,200 7,900
Professional, Scientific & Technical Services 1,234,600 1,226,600 -8,000 25,800
Management of Companies & Enterprises 228,200 226,900 -1,300 2,300
Administrative & Support & Waste Services 1,096,900 1,067,200 -29,700 1,700
Educational Services 367,500 352,900 -14,600 8,600
Health Care & Social Assistance 2,217,400 2,216,400 -1,000 75,900
   Individual & Family Services 608,600 612,200 3,600 25,300
Arts, Entertainment, & Recreation 301,500 286,000 -15,500 3,300
Accommodation & Food Service 1,613,200 1,578,000 -35,200 36,200
Other Services 561,300 556,400 -4,900 14,600
Government 2,565,700 2,544,700 -21,000 53,900
Total Nonfarm 16,763,500 16,456,000 -307,500 297,900
Total Wage & Salary 17,125,600 16,817,000 -308,600 308,000
Source: California Employment Development Department

6 Industries Below 2007 Pre-Recession Job Levels

Change in Number of Jobs Jan 2017

Source: California Employment Development Department, Wage & Salary Jobs (seasonally adjusted), wages are running 4 quarter average from QCEW wage data

Comparing the number of jobs by industry in January 2017 (not seasonally adjusted), 6 industries had employment below the 2007 pre-recession levels.  In the highest gain industries, Health Care & Social Assistance (less IFS) remained the leading industry, followed by the two lowest wage industries (Accommodation & Food Services and Individual & Family Services) 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 continued to lose ground.

Two-Tier Economy Persists

Unemployment rates (all data is not seasonally adjusted) continue to vary widely across the state, ranging from 3.8% in the Bay Area to 10.5% in the Central Valley.

Not Seasonally Adjusted Unemployment Rate (%) November 2016
California  5.5
Bay Area  3.8
Orange County  3.9
Los Angeles  5.1
San Diego/Imperial  5.2
Sacramento Region  5.3
Inland Empire  5.6
Central Sierra  6.2
Upstate California  8.0
Central Coast  8.5
Central Valley 10.5

7 California MSAs in the 10 Worst Unemployment Rates Nationally

Of the 10 Metropolitan Statistical Areas (MSAs) with the worst unemployment rates nationally, 7 are in California.  Of the 20 worst, 12 are in California.

Metropolitan Area December 2016 Unemployment Rate Rank
Brownsville-Harlingen, TX Metropolitan Statistical Area  7.3 368
Beaumont-Port Arthur, TX Metropolitan Statistical Area  7.4 369
Santa Cruz-Watsonville, CA Metropolitan Statistical Area  7.5 370
Kennewick-Richland, WA Metropolitan Statistical Area  7.8 371
Stockton-Lodi, CA Metropolitan Statistical Area  8.0 372
McAllen-Edinburg-Mission, TX Metropolitan Statistical Area  8.2 373
Farmington, NM Metropolitan Statistical Area  8.3 374
Modesto, CA Metropolitan Statistical Area  8.3 374
Madera, CA Metropolitan Statistical Area  9.4 376
Fresno, CA Metropolitan Statistical Area  9.5 377
Yuba City, CA Metropolitan Statistical Area  9.8 378
Bakersfield, CA Metropolitan Statistical Area  9.9 379
Hanford-Corcoran, CA Metropolitan Statistical Area  9.9 379
Salinas, CA Metropolitan Statistical Area  9.9 379
Yakima, WA Metropolitan Statistical Area  9.9 379
Merced, CA Metropolitan Statistical Area 10.8 383
Ocean City, NJ Metropolitan Statistical Area 11.5 384
Visalia-Porterville, CA Metropolitan Statistical Area 11.5 384
Yuma, AZ Metropolitan Statistical Area 15.3 386
El Centro, CA Metropolitan Statistical Area 18.8 387

California U-6 Unemployment Rate Eases to 11.3%

The broadest unemployment measure, U-6, incorporates number of unemployed, marginally attached workers, and persons employed part time for economic reasons.  On a 4-quarter moving average, the 2016 rate eased to 11.3% from 11.6% in the third quarter.  California’s rate compared to the US is shown in the figure below.

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