02/01/2023

Reports » Job Reports

November 2014

Highlights for policy makers:

Unemployment Rate Declines to 7.2%; Total Employment Climbs 70,700

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

Seasonally Adjusted California US

Nov 2014 Change from Oct 2014 Nov 2014 Change from Oct 2014
Unemployment Rate 7.2 -0.1 5.8 0
Labor Force 18,822,200 0.3% 156,397,000 0.1%
Participation Rate 62.5 0.2 62.8 0
Employment 17,467,000 0.4% 147,287,000 0.0%
Unemployment 1,355,200 -0.4% 9,110,000 1.3%

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

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

Not Seasonally Adjusted California US

Nov 2014 Change From Nov 2013 Nov 2014 Change From Nov 2013
Unemployment Rate 7.1 -1.1 5.5 -1.1
Labor Force 18,847,400 1.5% 156,297,000 0.8%
Participation Rate 62.6 0.3 62.8 -0.1
Employment 17,502,300 2.7% 147,666,000 2.0%
Unemployment 1,345,100 -12.1% 8,630,000 -16.0%

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 by 70,700, while the number of unemployed dropped by 6,000. California’s seasonally adjusted unemployment rate declined from 7.3% in October to 7.2% in November. The unadjusted rate increased from 7.0% in October 2014 to 7.1% in November 2014.

By comparison, total US employment remained essentially level (seasonally adjusted increase of 4,000), while the number of unemployed increased 1.3% (seasonally adjusted increase of 115,000).

California’s seasonally adjusted unemployment rate improved slightly to be 24% higher than the national rate. California had the 4th highest unemployment rate among the states, below DC, Mississippi, and Georgia.

Between November 2013 and November 2014, Bureau of Labor Statistics (BLS) data shows the total number of employed in California increased by 458,712 (not seasonally adjusted). This increase was the highest among the states, ahead of Texas (333,658) and Florida (277,268). Adjusted for population size, California had the 15th highest employment increase (15.2 additional employed per 1,000 Civilian Noninstitutional Population (Age 16+)), with North Dakota (27.1 per 1,000 population), Colorado (26.8 per 1,000 population), and DC (26.1 per 1,000 population) in the leading slots.

Labor Force Participation Rate Improves but Remains at 1976 Levels

The state’s seasonally adjusted labor force participation rate of 62.5% ticked upward for the 3rd month in a row, but still remains at levels last seen in 1976.

Source: US Bureau of Labor Statistics

1/5 of Total Employed in Part Time Work

The percentage of part time workers remained constant at 20.2% of total employment, with a slight decline to 7.0% working part time for economic reasons (primarily the lack of full time jobs).

California (%) US (%)
Nov 2014 Oct 2014 Nov 2014 Oct 2014
Total Part Time Employed 20.2 20.2 18.3 18.3
Part Time Employed for Economic Reasons 7.0 7.1 5.0 5.1

Source: California Employment Development Department; US Bureau of Labor Statistics, 12-month moving average

Nonfarm Jobs Increase 90,100

EDD reported that between October and November 2014, seasonally adjusted nonfarm payroll jobs increased by 90,100. Not seasonally adjusted, nonfarm payroll jobs grew by 115,500.

Looking at the not seasonally adjusted numbers, the change in nonfarm payroll jobs from October 2014 saw the largest increases in Retail Trade (66,000) as the holiday shopping season kicked into gear, Government (23,300), Health Care & Social Assistance (8,800), Professional, Scientific & Technical Services (6,900), and Accommodation & Food Services (3,800). Biggest declines were in Manufacturing (-5,400) and Arts, Entertainment & Recreation (-2,800).

Not Seasonally Adjusted Payroll Jobs Oct 2014 Nov 2014 Change Nov 2014 – Oct 2014 Change Nov 2014 – Nov 2013
Total Farm 439,100 393,900 -45,200 900
Mining and Logging 32,400 32,200 -200 1,500
Construction 694,200 697,900 3,700 41,700
Manufacturing 1,255,700 1,250,300 -5,400 600
Wholesale Trade 719,000 721,100 2,100 18,700
Retail Trade 1,634,000 1,700,000 66,000 15,800
Transportation, Warehousing and Utilities 522,500 525,100 2,600 6,600
Information 476,700 478,500 1,800 13,300
Finance and Insurance 513,500 516,100 2,600 -2,800
Real Estate and Rental and Leasing 264,300 264,000 -300 4,800
Professional, Scientific & Technical Services 1,195,600 1,202,500 6,900 49,400
Management of Companies and Enterprises 226,700 229,000 2,300 7,300
Administrative & Support & Waste Services 1,061,500 1,060,700 -800 62,100
Educational Services 374,100 374,500 400 10,400
Health Care and Social Assistance 2,050,400 2,059,200 8,800 70,700
Individual and Family Services 540,800 539,900 -900 19,900
Arts, Entertainment, and Recreation 273,000 270,200 -2,800 9,200
Accommodation and Food Service 1,460,600 1,464,400 3,800 47,100
Other Services 518,700 519,400 700 -1,700
Government 2,389,900 2,413,200 23,300 -3,200
Total Nonfarm 15,662,800 15,778,300 115,500 351,500
Total Wage and Salary 16,101,900 16,172,200 70,300 352,400

Source: California Employment Development Department

Jobs Growth Adjusted for Population Near National Average

From November 2013 to November 2014, California had the second highest increase in seasonally adjusted Nonfarm jobs, at 344,100 or 12.6% of the US total. Texas had the highest, with 441,200 Nonfarm jobs or 16.1% of the US total.

Adjusted for population, however, California’s private job creation rate is just slightly above the US average. A significant factor in California’s recent job growth is its sheer size. As the largest state (45% larger than the second largest state, Texas), California will normally be near the top in terms of total jobs created during any national recovery period. Adjusting for the labor force population base gives a better view of the state’s overall performance relative to the nation and other states.

The following chart shows Nonfarm jobs created per 100,000 Civilian Noninstitutional Population age 16 and over (the available labor force population base). Accounting for population size, California’s Nonfarm job performance for the 12 months was the 17th highest.

California has regained its total pre-recession job levels, but its continued performance near the national average job creation rate means the state has yet to match job creation with the population growth (about 5% according to Department of Finance data) that has occurred since the recession.

Source: US Bureau of Labor Statistics

5 Industries Remain Below 2007 Pre-Recession Job Levels

Source: California Employment Development Department, Wage & Salary Jobs (seasonally adjusted), Average Annual Wage (Q1 2014)

Comparing the number of jobs by industry in November 2014 (not seasonally adjusted), 5 industries remain below the 2007 pre-recession levels and the remaining are above. Looking at seasonally adjusted numbers, 6 industries (Retail Trade is added to this category) remain below the 2007 pre-recession levels.

As indicated in the figure above, growth has been primarily in the lower wage and higher wage industries. Significant job growth in industries paying above $1,000 a week average wage has been limited to Professional, Scientific & Technical Services, Health Care Services, and Management of Companies & Enterprises. All other industries in this wage category remain near or significantly below the 2007 average employment levels.

The chart above differs from previous versions provided in this monthly report in that the numbers are based on the not seasonally adjusted job numbers. Previous reports were based on seasonally adjusted numbers. This change allows Individual & Family Services to be broken out separately from Health Care & Social Assistance. Individual & Family Services (IFS) is dominated by In Home Supportive Services (IHSS) workers, which are Medicaid-supported positions which were first added to the job numbers by EDD beginning this year (with retroactive revisions to previous years).

Breaking the data out this way still shows Health Care & Social Assistance Services (less IFS) is still the leading job creator, driven primarily by expansion under the federal Affordable Care Act. Individual & Family Services, however, holds second place—largely a government-supported industry paying an average of only $14,300 a year.

Second Largest Job Growth in Jobs Paying Average Annual Wage of $14.3k

The chart above differs from previous versions provided in this monthly report in that the numbers are based on the not seasonally adjusted job numbers. Previous reports were based on seasonally adjusted numbers. This change allows Individual & Family Services to be broken out separately from Health Care & Social Assistance. Individual & Family Services (IFS) is dominated by In Home Supportive Services (IHSS) workers, which are Medicaid-supported positions which were first added to the job numbers by EDD beginning this year (with retroactive revisions to previous years).

Breaking the data out this way still shows Health Care & Social Assistance Services (less IFS) is still the leading job creator, driven primarily by expansion under the federal Affordable Care Act. Individual & Family Services, however, holds second place—largely a government-supported industry paying an average of only $14,300 a year.

12 Counties Remain in Double-Digit Unemployment, Up from 8 in October

Two-Tier Economy Persists

Unemployment rates and employment (all data is not seasonally adjusted) continue to vary widely across the state, with the spread between regions increasing to 2.18.

Not Seasonally Adjusted Unemployment Rate (%) Oct 2014
California 7.1
Orange County 5.0
Bay Area 5.1
San Diego/Imperial 6.6
Sacramento Region 6.7
Central Sierra 7.3
Central Coast 7.5
Los Angeles 7.7
Inland Empire 8.0
Upsate California 8.8
Central Valley 10.9
Ratio of Highest to Lowest Rate 2.18

By County:

Lowest 3 Unemployment Rates

Marin County 3.9
San Mateo County 4.1
San Francisco County 4.4

Highest 3 Unemployment Rates

Sutter County 13.0
Colusa County 16.9
Imperial County 22.6

Ratio of Highest to Lowest Rate: 5.79

By Legislative District:

Lowest 10 Unemployment Rates

SD 13 (Hill – D) 4.0 AD 22 (Mullin – D) 3.9
SD 37 (Walters – R) 4.3 AD 16 (Baker – R) 4.0
SD 11 (Leno – D) 4.5 AD 74 (Harper – R) 4.0
SD 36 (Bates – R) 4.9 AD 24 (Gordon – D) 4.2
SD 39 (Block – D) 5.0 AD 73 (Brough – R) 4.2
SD 07 (DeSaulnier – D) 5.2 AD 77 (Maienschein – R) 4.4
SD 15 (Beall – D) 5.3 AD 19 (Ting – D) 4.4
SD 10 (Wieckowski – D) 5.5 AD 68 (Wagner – R) 4.5
SD 29 (Huff – R) 5.5 AD 17 (Chiu – D) 4.5
SD 02 (McGuire – D) 5.5 AD 10 (Levine – D) 4.5

Highest 10 Unemployment Rates

SD 16 (Fuller – R) 8.9 AD 03 (Callagher – R) 9.6
SD 21 (Knight – R) 9.0 AD 23 (Patterson – R) 9.7
SD 33 (Lara – D) 9.0 AD 36 (Lackey – R) 10.0
SD 35 (vacant – ) 9.1 AD 64 (Gibson – D) 10.8
SD 24 (de León – D) 9.1 AD 13 (Eggman – D) 11.6
SD 08 (Berryhill – R) 9.5 AD 32 (Salas – D) 11.7
SD 40 (Hueso – D) 9.6 AD 26 (Mathis – R) 12.3
SD 05 (Galgiani – D) 10.5 AD 21 (Gray – D) 12.6
SD 12 (Cannella – R) 11.2 AD 31 (Perea – D) 13.0
SD 14 (Vidak – R) 13.2 AD 56 (Garcia – D) 14.7

Ratio of Highest to Lowest Rate: Senate 3.30
Ratio of Highest to Lowest Rate: Assembly 3.82