05/09/2021

Reports » Job Reports

June 2016

Highlights for policy makers:

Unemployment Rate Rises to 5.4%; Total Employment Eases by 3,200

The Labor Force data for June 2016 (seasonally adjusted; California preliminary) is shown below, along with the change from the prior month:

Seasonally Adjusted California US
Jun 2016 Change from May 2016 Jun 2016 Change from May 2016
Unemployment Rate 5.4 0.2 4.9 0.2
Labor Force 19,100,900 0.1% 158,880,000 0.3%
Participation Rate 61.9 0.0 62.7 0.1
Employment 18,078,500 0.0% 151,097,000 0.0%
Unemployment 1,022,400 2.8% 7,783,000 4.7%
Source: California Employment Development Department; US Bureau of Labor Statistics

The related not seasonally adjusted numbers (California preliminary), with the change from June 2015:

Not Seasonally Adjusted California US
Jun 2016 Change from Jun 2015 Jun 2016 Change from Jun 2015
Unemployment Rate 5.7 -0.5 5.1 -0.4
Labor Force 19,181,200 1.0% 160,135,000 1.2%
Participation Rate 62.2 -0.1 63.2 0.1
Employment 18,093,500 1.5% 151,990,000 1.6%
Unemployment 1,087,700 -7.8% 8,144,000 -5.7%
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 essentially remained level, edging down 3,200 from May.  Unemployed rose by 27,400.  California’s seasonally adjusted unemployment rate rose from 5.2% in May to 5.4% in June.  The unadjusted rate decreased from 6.2% in June 2015 to 5.7% in June 2016.  California’s seasonally adjusted unemployment rate was the 16th highest among the states.

Total US employment saw a seasonally adjusted increase of only 67,000, while the number of unemployed increased by 347,000.  The US unemployment rate rose from 4.7% in May to 4.9% in June.

Labor Force Participation Rate Unchanged at 61.9%

California’s participation rate (seasonally adjusted) remained unchanged from May 2016 at 61.9%.  The comparable US rate increased 0.1% to 62.7%.

California’s seasonally adjusted labor force participation rate continues to remain below the previous lows recorded in 1976.  The revised labor force data shows the participation rate has remained essentially level since August 2015, alternating between 61.9% and 62.0% during this period. 

The labor force participation rate has direct implications to a range of current policy challenges.  As households have fewer income earners, the disparity in household incomes increases while the ability of households to afford the state’s continuously rising housing costs decreases.  This relative decline in employed also translates into a relatively smaller tax base for state government finances, increasing the overall volatility of a system that is increasingly dependent on the incomes of only a few income earners.  The 4% drop since 2008 represents 1.2 million Californians who are not now in the labor force; the 5.3% drop from the prior 2001 peak represents 1.6 million.  While some of this shift can be attributed to demographic changes, California has a relatively younger population than the US average and like the rest of the US, has seen increases in the age at which workers retire, yet the state’s participation rate has remained below the US average since 2002.  

State Employment Growth Rankings

Change in Employment, June 2015 – June 2016
Rank Number of Employed Percentage Change Population Adjusted
(employment growth per 1,000 civilian
noninstitutional population)
1 CA 308,211 OR 5.7% OR 33.0
2 TX 234,004 TN 4.3% DE 24.9
3 FL 188,316 DE 4.2% TN 24.2
4 GA 146,672 AR 3.9% DC 23.4
5 NC 133,046 DC 3.6% AR 21.2
6 MI 132,536 AZ 3.4% IN 19.8
7 TN 124,873 GA 3.3% CO 19.2
8 OR 106,205 IN 3.3% AZ 19.2
9 IN 101,563 SC 3.2% GA 18.9
10 AZ 101,019 CO 3.0% SC 17.7
11 OH 97,791 NC 3.0% NC 17.1
12 IL 90,916 MI 3.0% MI 16.8
13 CO 81,420 WA 2.4% WA 14.0
14 PA 79,422 ID 2.2% NH 13.4
15 WA 78,846 FL 2.1% UT 13.3
16 SC 67,545 UT 2.0% ID 13.3
17 NJ 65,399 NH 2.0% WI 12.1
18 NY 56,516 TX 1.9% FL 11.6
19 WI 54,867 WI 1.9% TX 11.4
20 MA 49,537 KY 1.8% OH 10.7
21 AR 48,742 OH 1.8% CA 10.1
22 MO 46,788 CA 1.7% MD 9.9
23 MD 46,630 AL 1.7% MO 9.9
24 AL 33,843 HI 1.6% KY 9.8
25 KY 33,671 MO 1.6% HI 9.7
26 UT 28,672 MD 1.6% NJ 9.2
27 MN 25,974 NJ 1.5% AL 8.9
US 2,375,000 US 1.6% US 9.4
Source: US Bureau of Labor Statistics, Seasonally Adjusted

Between June 2015 and June 2016, Bureau of Labor Statistics (BLS) data shows the total number of employed in California increased by 308,211 (seasonally adjusted), or 13.0% of the total net employment gains in this period for the US.  Measured by percentage change in employment over the year, California was 22nd highest.  Adjusted for population, California ranked 21st.   

Nonfarm Jobs Increase 40,300

EDD reported that between May and June 2016, seasonally adjusted nonfarm payroll jobs increased by 40,300.  May’s gains were revised upwards to 27,500 from the previously reported gain of 15,200.     

Looking at the not seasonally adjusted numbers, hiring saw increases in all but 2 industries.  The change in total payroll jobs from May 2016 saw the largest increases in Accommodation & Food Services (15,500), Arts, Entertainment & Recreation (14,900), and Professional, Scientific & Technical Services (11,900).  Declines were in Government (-2,900) and Educational Services (-11,500) as schools began to enter the summer vacation period.    

Not Seasonally Adjusted Payroll Jobs May 2016 Jun 2016 Change Jun 2016 – May 2016 Change Jun 2016 – Jun 2015
Total Farm 480,300 484,300 4,000 15,800
Mining & Logging 25,500 26,300 800 -3,100
Construction 759,900 767,500 7,600 37,500
Manufacturing 1,278,900 1,290,300 11,400 -6,800
Wholesale Trade 738,400 745,500 7,100 26,200
Retail Trade 1,665,600 1,672,900 7,300 34,600
Transportation, Warehousing & Utilities 561,700 563,700 2,000 16,000
Information 493,400 494,900 1,500 10,700
Finance & Insurance 528,700 530,000 1,300 4,800
Real Estate & Rental & Leasing 281,000 283,800 2,800 11,700
Professional, Scientific & Technical Services 1,252,400 1,264,300 11,900 67,700
Management of Companies & Enterprises 233,700 234,700 1,000 4,400
Administrative & Support & Waste Services 1,075,400 1,084,800 9,400 38,000
Educational Services 375,000 363,500 -11,500 31,600
Health Care & Social Assistance 2,177,700 2,177,900 200 81,700
   Individual & Family Services 585,200 591,900 6,700 24,400
Arts, Entertainment, & Recreation 307,700 322,600 14,900 24,700
Accommodation & Food Service 1,595,200 1,610,700 15,500 58,400
Other Services 555,900 558,400 2,500 10,200
Government 2,567,900 2,565,000 -2,900 69,500
Total Nonfarm 16,474,000 16,556,800 82,800 517,800
Total Wage & Salary 16,954,300 17,041,100 86,800 533,600
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 461,100 or 18.8% of the US net increase.  By percentage growth in jobs, California was 7th highest, and by population adjusted jobs growth, 9th highest.  

Change in Nonfarm Jobs (seasonally adjusted), June 2015 – June 2016
Rank Number of Jobs Employment Growth (%) Population Adjusted
(job growth per 1,000 civilian
noninstitutional population)
1 CA 461,100 OR 3.2% UT 19.9
2 FL 244,500 UT 3.2% DE 18.4
3 TX 171,100 DE 3.1% OR 17.6
4 GA 123,200 FL 3.0% WA 15.9
5 NY 103,100 AZ 2.9% DC 15.6
6 MI 91,500 GA 2.9% GA 15.6
7 WA 90,700 CA 2.9% ID 15.1
8 NC 89,100 WA 2.9% NV 15.0
9 OH 81,600 ID 2.8% CA 15.0
10 AZ 76,300 NV 2.7% FL 14.7
11 VA 74,500 SC 2.6% AZ 14.2
12 NJ 69,000 CO 2.4% CO 14.2
13 MA 67,300 TN 2.3% SC 13.5
14 TN 66,800 HI 2.3% HI 13.4
15 PA 62,700 MD 2.2% TN 12.8
16 CO 61,500 MI 2.2% MD 12.3
17 MD 58,600 NC 2.1% MA 12.1
18 OR 57,700 VA 1.9% MI 11.6
19 SC 52,300 MA 1.9% VA 11.4
20 WI 47,800 AR 1.7% NC 11.3
US 2,451,000 US 1.7% US 9.7
Source: US Bureau of Labor Statistics

Five Industries Below 2007 Pre-Recession Job Levels

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 June 2016 (not seasonally adjusted), five industries showed employment below the 2007 pre-recession levels.  In the highest gain industries, Accommodation & Food Services—the second lowest wage industry—became the leading industry as a result of seasonal tourism.  The highest wage blue collar industry—Mining & Logging—remained slightly in negative territory as oil prices remained low.

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 9.7% in the Central Valley.  

Not Seasonally Adjusted Unemployment Rate (%) June 2016
California 5.7
Bay Area 4.2
Orange County 4.4
Los Angeles 5.2
Sacramento Region 5.6
Central Coast 5.8
San Diego/Imperial 6.0
Central Sierra 6.0
Inland Empire 6.6
Upstate California 7.3
Central Valley 9.7

Looking at the regional shifts in the state’s economy, the Bay Area continues to dominate net employment growth.  Compared to the precession employment peak, the Bay Area with just under 20% of the population accounts for 45.4% of the net employment growth.  Inland Empire and Central Valley have both generated higher employment growth than Los Angeles Region, which with nearly 30% of the population contains only 12.9% of the net employment gains.

By Legislative District:

Lowest 10 Unemployment Rates
CD 18 (Eshoo – D) 3.3 SD 13 (Hill – D) 3.2 AD 22 (Mullin – D) 3.1
CD 12 (Pelosi – D) 3.3 SD 11 (Leno – D) 3.6 AD 16 (Baker – R) 3.1
CD 45 (Walters – R) 3.6 SD 37 (Moorlach – R) 3.8 AD 24 (Gordon – D) 3.3
CD 33 (Lieu – D) 3.7 SD 26 (Allen – D) 3.8 AD 28 (Low – D) 3.4
CD 14 (Speier – D) 3.7 SD 39 (Block – D) 4.0 AD 17 (Chiu – D) 3.6
CD 52 (Peters – D) 3.7 SD 36 (Bates – R) 4.2 AD 66 (Hadley – R) 3.6
CD 17 (Honda – D) 3.8 SD 25 (Liu – D) 4.3 AD 19 (Ting – D) 3.6
CD 27 (Chu – D) 3.9 SD 15 (Beall – D) 4.3 AD 77 (Maienschein – R) 3.7
CD 48 (Rohrabacher – R) 4.2 SD 32 (Mendoza – D) 4.4 AD 74 (Harper – R) 3.7
CD 02 (Huffman – D) 4.2 SD 07 (Glazer – D) 4.4 AD 73 (Brough – R) 3.8
Highest 10 Unemployment Rates
CD 36 (Ruiz – D) 7.1 SD 28 (Stone – R) 6.4 AD 80 (Gonzalez – D) 7.7
CD 08 (Cook – R) 7.2 SD 31 (Roth – D) 6.7 AD 03 (Gallagher – R) 8.2
CD 41 (Takano – D) 7.5 SD 20 (Leyva – D) 6.7 AD 23 (Patterson – R) 8.3
CD 09 (McNerney – D) 7.9 SD 04 (Nielsen – R) 7.0 AD 34 (Grove – R) 8.8
CD 10 (Denham – R) 8.6 SD 08 (Berryhill – R) 8.0 AD 13 (Eggman – D) 8.9
CD 22 (Nunes – R) 8.9 SD 05 (Galgiani – D) 8.3 AD 26 (Mathis – R) 10.6
CD 23 (McCarthy – R) 9.2 SD 12 (Cannella – R) 9.0 AD 31 (Arambula – D) 10.7
CD 16 (Costa – D) 10.6 SD 16 (Fuller – R) 9.0 AD 21 (Gray – D) 10.8
CD 21 (Valadao – R) 11.8 SD 40 (Hueso – D) 10.2 AD 32 (Salas – D) 12.7
CD 51 (Vargas – D) 12.0 SD 14 (Vidak – R) 12.4 AD 56 (Garcia – D) 14.0

8 California MSAs in the 10 Worst Unemployment Rates Nationally

While employment continues to improve in parts of the state, other portions of California continue to experience some of the worst unemployment rates in the nation. Of the 10 Metropolitan Statistical Areas (MSAs) with the worst unemployment rates nationally, 8 are in California. Of the 20 worst, 10 are in California.

US Rank MSA May 2016 Unemployment Rate
367 Stockton-Lodi, CA Metropolitan Statistical Area 7.1
369 Atlantic City-Hammonton, NJ Metropolitan Statistical Area 7.2
369 Lafayette, LA Metropolitan Statistical Area 7.2
369 Vineland-Bridgeton, NJ Metropolitan Statistical Area 7.2
372 Danville, IL Metropolitan Statistical Area 7.3
373 Casper, WY Metropolitan Statistical Area 7.5
374 Weirton-Steubenville, WV-OH Metropolitan Statistical Area 7.6
375 Yakima, WA Metropolitan Statistical Area 7.7
376 Modesto, CA Metropolitan Statistical Area 8.0
377 Farmington, NM Metropolitan Statistical Area 8.1
378 Ocean City, NJ Metropolitan Statistical Area 8.3
379 Fresno, CA Metropolitan Statistical Area 8.5
379 Madera, CA Metropolitan Statistical Area 8.5
379 Yuba City, CA Metropolitan Statistical Area 8.5
382 Hanford-Corcoran, CA Metropolitan Statistical Area 8.6
383 Visalia-Porterville, CA Metropolitan Statistical Area 9.5
384 Bakersfield, CA Metropolitan Statistical Area 9.7
384 Merced, CA Metropolitan Statistical Area 9.7
386 El Centro, CA Metropolitan Statistical Area 19.4
387 Yuma, AZ Metropolitan Statistical Area 20.9

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