05/24/2022

Reports » Job Reports

July 2015

Highlights for policy makers:

Unemployment Rate Declines to 6.3%; Total Employment Climbs 35,000

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

Seasonally Adjusted California US

June 2015 Change from May 2015 June 2015 Change from May 2015
Unemployment Rate 6.3 -0.1 5.3 -0.2
Labor Force 19,042,600 0.1% 157,037,000 -0.3%
Participation Rate 62.5 0.0 62.6 -0.3
Employment 17,847,800 0.2% 148,739,000 0.0%
Unemployment 1,194,800 -1.5% 8,299,000 -4.3%

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

The related not seasonally adjusted numbers (California preliminary), with the change from June 2014

Not Seasonally Adjusted California US

June 2015 Change from June 2014 June 2015 Change from June 2014
Unemployment Rate 6.2 -1.2 5.3 -0.8
Labor Force 19,056,900 1.4% 158,283,000 0.8%
Participation Rate 62.5 0.2 63.1 -0.3
Employment 17,878,400 2.8% 149,645,000 1.7%
Unemployment 1,178,500 -15.0% 8,638,000 -12.7%

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 grew 35,000 from May, while the number of unemployed dropped by 18,600. California’s seasonally adjusted unemployment rate declined from 6.4% in May to 6.3% in June. The unadjusted rate decreased from 7.4% in June 2014 to 6.2% in June 2015.

Total US employment was essentially unchanged (seasonally adjusted increase of 56,000), while the number of unemployed dropped at a higher rate (seasonally adjusted decline of 375,000).

California’s labor force participation remained level at 62.5%, and due to the steep drop in the US rate, neared the national average for the first time since 2009

State Employment Growth Rankings

California’s seasonally adjusted unemployment rate was 16% higher than the national rate. California’s ranking worsened slightly to be the 9th highest unemployment rate among the states (including DC).

Change in Employment, June 2014 – June 2015
Rank Number of Employed Percentage Change Population Adjusted (employment growth per 1,000 civilian noninstitutional population)
1 CA 482,404 OK 4.9% OK 27.8
2 NY 214,509 TN 4.4% TN 24.0
3 NC 151,584 MS 4.0% UT 21.3
4 TN 124,199 AR 3.7% ID 20.8
5 TX 123,422 AZ 3.6% MA 20.8
6 MA 114,120 DE 3.6% DE 20.5
7 AZ 104,357 ID 3.5% MS 20.0
8 WA 94,285 NC 3.5% DC 20.0
9 OK 82,747 MA 3.4% AZ 19.9
10 GA 82,099 UT 3.3% AR 19.7
11 PA 73,751 DC 3.2% NC 19.5
12 MI 70,649 SC 3.1% NV 17.4
13 MD 64,587 NV 3.0% CT 16.9
14 SC 64,269 WA 2.9% SC 16.9
15 NJ 58,734 CA 2.8% WA 16.9
16 FL 54,925 CT 2.8% CA 15.8
17 MN 54,663 LA 2.7% RI 15.7
18 LA 53,997 RI 2.6% LA 15.1
19 IN 49,084 MT 2.5% MT 15.0
20 CT 48,776 NY 2.4% MD 13.7
  US 2,717,127 US 1.9% US 10.8

Source: US Bureau of Labor Statistics

Between June 2014 and June 2015, Bureau of Labor Statistics (BLS) data shows the total number of employed in California increased by 482,404 (seasonally adjusted), or 17.8% of the total net employment gains in this period for the US. Measures that adjust for size will generally give a better ranking based on economic performance.

Measured by total employment gains, California continued to be highest among the states. Measured by percentage change in employment over the year, California was 15th. Adjusted for population, California was the 16th highest. Taken together, these rankings suggest that while California continues to improve its employment growth overall, it still is underperforming relative to its size. While California now exceeds the pre-recession employment highs and is technically in an expansion period, employment gains have yet to match population growth since the recession. The state continues to fall short of this measure of recovery.

Labor Force Participation Rate Remains at 62.5%

California’s participation rate (seasonally adjusted) remained unchanged at 62.5%, returning to the marginal gains seen last fall. The comparable US rate showed a steep drop to 62.6%. While California’s rate is now nearing the national average, the overall level remains at rates previously seen in 1976.

Nonfarm Jobs Increase 22,900

EDD reported that between May and June 2015, seasonally adjusted nonfarm payroll jobs increased by 22,900. The May job gains were revised downwards from the preliminary estimate of 54,200 to 46,200.

Looking at the not seasonally adjusted numbers, the change in nonfarm payroll jobs from May 2015 saw the largest increases in Manufacturing (11,900), Retail Trade (10,600), and Professional, Scientific & Technical Services (9,400). As school began letting out for summer, declines were felt in Educational Services (-13,900) and Government (-13,400) and in Management of Companies & Enterprises (-200).

Not Seasonally Adjusted Payroll Jobs May 2015 June 2015 Change Jun 2015 – May 2015 Change Jun 2015 – Jun 2014
Total Farm 465,700 469,200 3,500 3,300
Mining and Logging 29,700 29,900 200 -2,000
Construction 715,800 722,600 6,800 46,300
Manufacturing 1,270,700 1,282,600 11,900 8,300
Wholesale Trade 738,600 740,200 1,600 26,900
Retail Trade 1,641,200 1,651,800 10,600 36,300
Transportation, Warehousing and Utilities 533,500 538,200 4,700 19,500
Information 466,500 469,200 2,700 17,000
Finance and Insurance 519,000 521,300 2,300 4,700
Real Estate and Rental and Leasing 272,900 276,700 3,800 7,900
Professional, Scientific & Technical Services 1,249,200 1,258,600 9,400 79,900
Management of Companies and Enterprises 230,300 230,100 -200 5,900
Administrative & Support & Waste Services 1,065,000 1,071,000 6,000 50,700
Educational Services 375,900 362,300 -13,600 21,600
Health Care and Social Assistance 2,113,000 2,113,400 400 64,100
  Individual and Family Services 575,500 576,400 900 9,900
Arts, Entertainment, and Recreation 290,900 294,700 3,800 4,500
Accommodation and Food Service 1,540,900 1,548,900 8,000 49,900
Other Services 550,300 553,100 2,800 9,000
Government 2,493,600 2,480,200 -13,400 31,800
Total Nonfarm 16,097,000 16,144,800 47,800 482,600
Total Wage and Salary 16,562,700 16,614,000 51,300 485,600

Source: California Employment Development Department

By total number of new jobs, California had the highest increase in seasonally adjusted nonfarm jobs among the states from June 2014 to June 2015, at 461,900 or 16.8 % of the US total. By percentage growth in jobs, California was the 6th highest; and by population adjusted jobs growth, 8th highest.

Change in Nonfarm Jobs (seasonally adjusted), June 2014 – June 2015
Rank Number of Jobs Percentage Change Population Adjusted (job growth per 1,000
civilian noninstitutional population)
1 CA 461,900 UT 4.3% UT 26.6
2 TX 269,900 ND 3.5% WA 19.1
3 FL 266,200 WA 3.5% ND 18.9
4 NM 153,600 FL 3.4% OR 17.2
5 WA 106,800 OR 3.2% DE 16.7
6 GA 106,000 CA 3.0% FL 16.4
7 NV 97,500 SC 2.9% CO 15.5
8 MI 90,600 CO 2.7% CA 15.2
9 ME 72,700 IS 2.6% SD 15.0
10 OH 71,800 GA 2.6% SC 14.9
  US 2,749,800 US 2.0% US 11.0

7 Industries Remain Below 2007 Pre-Recession Job Levels

Source: California Employment Development Department, Wage & Salary Jobs (not seasonally adjusted), Average Annual Wage (Q3 2014)

Comparing the number of jobs by industry in June 2015 (not seasonally adjusted), 7 industries remain below the 2007 pre-recession levels.

As indicated in the figure above, growth continues to be primarily in the lower wage and higher wage industries, with two of the top three growth industries paying well under $2,000 a month in average wages. The largest gaps remain in the middle class-wage industries of Manufacturing and Construction. However, the higher-wage Finance & Insurance continues to exhibit sustained and more significant declines.

6 Counties Remain in Double-Digit Unemployment, Down from 7 in May

Two-Tier Economy Persists

Unemployment rates (all data is not seasonally adjusted) continue to vary widely across the state, ranging from 4.2% in the Bay Area to more than double at 9.8 in the Central Valley.

Not Seasonally Adjusted Unemployment Rate (%) June 2015
California 6.2
Bay Area 4.2
Orange County 4.3
Sacramento Region 5.6
San Diego/Imperial 5.8
Central Coast 5.8
Central Sierra 6.2
Inland Empire 6.5
Los Angeles 7.0
Upstate California 7.4
Central Valley 9.7

Ratio of Highest to Lowest Rate: 2.30

By County:

Lowest 3 Unemployment Rates

San Mateo County 3.3
Marin County 3.4
San Francisco County 3.5

Highest 3 Unemployment Rates

Tulare County 11.0
Colusa County 12.9
Imperial County 21.1

Ratio of Highest to Lowest Rate: 6.39

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