04/10/2021

Reports » Job Reports

July 2014

Highlights for policy makers:

Unemployment Rate Remains the Same at 7.4%; Total Employment Declines 31,400

The Labor Force data for July 2014 (seasonally adjusted; California preliminary) is shown below, along with the change from the prior month:

Seasonally Adjusted CA US

Jul 2014 Change From Jun 2014 Jul 2014 Change from Jun 2014
Unemployment Rate 7.4 0 6.2 0.1
Labor Force 18,579,800 -0.2% 156,023,000 0.2%
Participation Rate 61.9 -0.2 62.9 0.1
Employment 17,208,600 -0.2% 146,352,000 0.1%
Unemployment 1,371,200 -0.6% 9,671,000 2.1%

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

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

Seasonally Adjusted CA US

Jul 2014 Change From Jul 2013 Jul 2014 Change From Jul 2013
Unemployment Rate 7.8 -1.6 6.5 -1.2
Labor Force 18,699,600 -0.1% 157,573,000 0.2%
Participation Rate 62.3 +0.3 63.5 -0.5
Employment 17,232,700 1.6% 147,265,000 1.5%
Unemployment 1,466,900 -16.5% 10,307,000 -14.7%

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

California Employment Development Department’s (EDD) latest release shows mixed results for July 2014. On a seasonally adjusted basis, the number of unemployed dropped by 8,100 compared to June 2014. Total employment, however, declined even more, by a total of 31,400. California’s seasonally adjusted unemployment rate remained unchanged from June at 7.4%, the lowest since Q3 2008. The not seasonally adjusted rate increased 0.3 points from June 2014 to 7.8% in July 2014, but was down 1.6 points from July 2013.

By comparison, total US employment increased 0.1% over June (seasonally adjusted increase of 329,000), while the number of unemployed increased 2.1% (seasonally adjusted increase of 197,000).

With a small decline in the US rate, California’s seasonally adjusted unemployment rate now stands 19% higher than the national rate. California was tied with Tennessee for the 7th highest unemployment rate.

Between July 2013 and July 2014, BLS data shows the total number of employed increased by 275,059 (not seasonally adjusted). This increase was the 2nd highest among the states, behind Texas (310,458) and ahead of Florida (263,728).

Labor Force Participation Rate Declines 0.2%; At Lowest Level Since 1976

A contributing factor behind the stable unemployment rate in July was continued contraction of the labor force participation rate by another 0.2% (seasonally adjusted). The state’s seasonally adjusted labor force participation is now at its lowest point in the current BLS data series, which has tracked this statistic from January 1976 to present. On a not seasonally adjusted basis, rather than keeping pace with population growth, the Labor Force has essentially remained unchanged over the last year, declining by 14,000 since July 2013.

Change in Nonfarm Jobs Dominated by Seasonal Factors

EDD reported that between June and July 2014, seasonally adjusted nonfarm payroll jobs increased by 27,700.

Looking at the not seasonally adjusted numbers, the change in nonfarm payroll jobs from June 2014 was dominated by seasonal reductions in Government and Educational Services, and by a seasonal increase in Manufacturing, in particular Food Manufacturing. Overall, Total Nonfarm payroll jobs dropped 165,600 from June, and Total Wage & Salary Jobs dropped 175,000.

Not Seasonally Adjusted Payroll Jobs Jun 2014 Jul 2014 Change Jul 2014 – Jun 2014 Change Jul 2014 -Jul 2013
Total Farm 473,600 464,200 -9,400 -800
Mining and Logging 32,000 32.700 700 1,400
Construction 671,400 676,500 5,100 25,000
Manufacturing 1,250,700 1,260,800 10,100 -1,900
Wholesale Trade 716,100 713,800 -2,300 11,400
Retail Trade 1,609,500 1,616,800 7,300 27,400
Transportation, Warehousing and Utilities 514,900 512,300 -2600, 7,800
Information 469,900 469,000 -800 18,400
Finance and Insurance 512,200 512,000 -200 -14,900
Real Estate and Rental and Leasing 267,700 265,200 -2,500 3,500
Professional, Scientific & Technical Services 1,174,800 1,180,400 5,600 42,700
Management of Companies and Enterprises 224,900 225,700 800 8,900
Administrative & Support & Waste Services 1,020,100 1,019,300 -800 41,700
Educational Services 349,100 329,700 -19,400 18,000
Health Care and Social Assistance 2,029,400 2,027,800 -1,600 69,200
Individual and Family Services 537,100 536,700 -400 23,900
Arts, Entertainment, and Recreation 283,500 284,300 800 3,600
Accommodation and Food Service 1,461,700 1,468,200 6,500 40,600
Other Services 527,100 524,000 -3,100 6,200
Government 2,425,100 2,255,900 -169,200 19,500
Total Nonfarm 15,540,000 15,374,400 -165,600 328,500
Total Wage and Salary 16,013,600 15,838,600 -175,000 327,700

Source: California Employment Development Department

8 Industries Remain Below 2007 Pre-Recession Job Levels; 11 Above

Source: California Employment Development Department, Wage & Salary Jobs (seasonally adjusted), Average Weekly Wage (2013)

Comparing the number of jobs by industry in July 2014 (seasonally adjusted), 8 industries remain below the 2007 pre-recession levels and 11 are above. As indicated in the figure above, growth has been primarily in the lower wage and higher wage industries. Middle class wage industries such as Manufacturing and Construction remain well below the 2007 levels.

The highest growth industry, Health Care & Social Assistance, includes government-paid IHSS workers under the Social Assistance component.

The Two-Tiered Economic Recovery Persists, 17 Counties Continue to Experience Double-digit Unemployment

Unemployment rates and employment (all data is not seasonally adjusted) continue to vary widely across the state, although the spread between regions continued to drop from 2.06 in June to 1.95 in July. Unemployment rates increased slightly in all regions.

Not Seasonally Adjusted Payroll Jobs Unemployment Rate (%) Jul 2014
California 7.8
Orange County 5.7
Bay Area 5.8
Central Coast 7.0
Sacramento Region 7.4
San Diego/Imperial 7.5
Central Sierra 7.9
Los Angeles 8.5
Inland Empire 9.2
Update California 9.5
Central Valley 11.1
Ratio of Highest to Lowest Rate 1.95

17 counties to continue to see double-digit unemployment rates:

Lowest 3 Unemployment Rates

Marin County 4.4
San Mateo County 4.7
San Francisco County 4.9

Highest 3 Unemployment Rates

Yuba County 12.7
Colusa County 13.5
Imperial County 24.7

Ratio of Highest to Lowest Rate: 5.61

By Legislative District:

Lowest 10 Unemployment Rates

SD 13 (Hill – D) 4.6 AD 22 (Mullin – D) 4.4
SD 37 (Walters – R) 4.9 AD 16 (Buchanan – D) 4.5
SD 11 (Leno – D) 5.0 AD 74 (Mansoor – R) 4.6
SD 36 (new – ) 5.7 AD 73 (Harkey – R) 4.8
SD 39 (Block – D) 5.7 AD 24 (Gordon – D) 4.8
SD 07 (DeSaulnier – D) 5.9 AD 19 (Ting – D) 5.0
SD 15 (Beall – D) 6.1 AD 77 (Maienschein – R) 5.0
SD 02 (Evans – D) 6.1 AD 17 (Ammiano – D) 5.1
SD 10 (Corbett – D) 6.2 AD 10 (Levine – D) 5.1
SD 29 (Huff – R) 6.2 AD 68 (Wager – R) 5.1

Highest 10 Unemployment Rates

SD 16 (Fuller – R) 9.7 AD 03 (Logue – R) 10.5
SD 30 (Mitchell – D) 9.7 AD 33 ( Donnelly – R) 10.6
SD 33 (Lara – D) 9.9 AD 36 (Fox – D) 10.9
SD 35 (Wright – D) 9.9 AD 64 (Hall – D) 11.8
SD 24 (de Leon – D) 9.9 AD 13 (Eggman – D) 12.0
SD 21 (Knight – R) 10.0 AD 32 (Salas – D) 12.3
SD 40 (Hueso – D) 10.8 AD 31 (Perea – D) 12.5
SD 12 (Cannella -R) 10.9 AD 26 (Conway – R) 12.6
SD 05 (Galgiani – D) 10.9 AD 21 (Gray – D) 13.2
SD 14 (Vidak – R) 13.4 AD 56 (Perez – D) 16.4

Ratio of Highest to Lowest Rate: Senate 2.93

Ratio of Highest to Lowest Rate: Assembly 3.74