Highlights for policy makers:
- Unemployment Rate Level at 4.6%; Total Employment Gains 101,900
- Labor Force Participation Rate Nears US Average
- State Employment Growth Rankings—California Returns to 1st Place
- Nonfarm Jobs Up 47,400
- Five Industries below 2007 Pre-Recession Job Levels
- Job Gains by Wage Level
- Two-Tier Economy Persists—Central Valley Unemployment More than Twice as High as Bay Area
- Bay Area Provided 39% of Net Employment Growth Since Recession
- Six California MSAs in the 10 Worst Unemployment Rates Nationally
Unemployment Rate Improves to 4.6%; Total Employment Gains 101,900
The Labor Force data for November 2017 (seasonally adjusted; California preliminary) is shown below, along with the change from the prior month:
Seasonally Adjusted | California | US | ||
---|---|---|---|---|
Nov 2017 | Change from Oct 2017 | Nov 2017 | Change from Oct 2017 | |
Unemployment Rate | 4.6% | -0.3 | 4.1% | 0.0 |
Labor Force | 19,393,400 | 0.2% | 160,529,000 | 0.1% |
Participation Rate | 62.5% | 0.1 | 62.7% | 0.0 |
Employment | 18,509,100 | 0.6% | 153,918,000 | 0.0% |
Unemployment | 884,300 | -7.2% | 6,610,000 | 1.4% |
The related not seasonally adjusted numbers (California preliminary), with the change from November 2016:
Not Seasonally Adjusted | California | US | ||
---|---|---|---|---|
Nov 2017 | Change from Nov 2016 | Nov 2017 | Change from Nov 2016 | |
Unemployment Rate | 4.0% | -1.0 | 3.9% | -0.5 |
Labor Force | 19,344,400 | 1.0% | 160,466,000 | 0.6% |
Participation Rate | 62.3% | 0.1 | 62.7% | 0.1 |
Employment | 18,568,900 | 2.1% | 154,180,000 | 1.2% |
Unemployment | 775,500 | -19.5% | 6,286,000 | -11.0% |
California Employment Development Department’s (EDD) latest release shows on a seasonally adjusted basis, total employment was up 101,900 from October, while the number of unemployed dropped by 68,700. The labor force rose by 33,200.
California’s seasonally adjusted unemployment rate improved to 4.6%, besting the previous series low of 4.7% first seen in 2000, just before the Dot.com bust. California tied with Connecticut, Michigan, and Pennsylvania for the 14th highest unemployment rate among the states. The unadjusted rate from dropped from 5.0% in November 2016 to 4.0%.
Total US employment saw a seasonally adjusted gain of 57,000 from October, while the number of unemployed rose 90,000. The national unemployment rate was steady at 4.1%. The national labor force numbers rose by 148,000.
Labor Force Participation Rate Nears US Average
California’s participation rate (seasonally adjusted) in November rose to 62.5%, while the US rate stayed at 62.7%.
State Employment Growth Rankings—California Returns to 1st Place
Rank | Number of Employed | Percentage Change | Population Adjusted (employment growth per 1,000 civilian noninstitutional population) |
---|---|---|---|
1 | CA 351,400 | CO 4.6% | CO 29.7 |
2 | FL 320,100 | OR 4.0% | OR 23.5 |
3 | TX 256,700 | TN 3.9% | MN 23.3 |
4 | NY 194,600 | GA 3.6% | TN 22.6 |
5 | GA 170,300 | MN 3.5% | UT 22.5 |
6 | CO 129,400 | WA 3.5% | GA 21.5 |
7 | WA 121,700 | FL 3.4% | WA 21.1 |
8 | TN 118,500 | UT 3.4% | FL 19.1 |
9 | MN 101,000 | KY 2.9% | WI 16.9 |
10 | AZ 88,200 | AZ 2.8% | ID 16.6 |
11 | OH 86,100 | AR 2.8% | AZ 16.3 |
12 | NC 81,600 | ID 2.7% | KY 16.0 |
13 | VA 78,500 | WI 2.6% | AR 15.7 |
14 | OR 77,800 | NV 2.4% | MD 15.2 |
15 | WI 77,200 | MD 2.4% | NV 13.9 |
16 | MD 72,000 | NY 2.1% | NY 12.3 |
17 | KY 55,300 | TX 2.0% | TX 12.2 |
18 | UT 50,000 | AL 2.0% | VA 12.0 |
19 | MA 45,000 | CA 1.9% | CA 11.4 |
20 | AL 40,200 | VA 1.9% | AL 10.5 |
21 | MI 38,200 | NC 1.8% | NC 10.3 |
22 | AR 36,300 | OK 1.7% | OK 9.9 |
23 | SC 34,300 | OH 1.6% | ME 9.7 |
24 | NV 32,200 | ME 1.6% | OH 9.4 |
25 | OK 29,800 | SC 1.6% | SC 8.8 |
26 | LA 24,600 | RI 1.4% | KS 8.8 |
27 | ID 21,300 | KS 1.4% | RI 8.6 |
28 | KS 19,400 | MA 1.3% | MA 8.1 |
29 | IN 14,800 | LA 1.2% | DC 7.6 |
30 | CT 12,200 | NM 1.2% | LA 6.8 |
31 | ME 10,600 | DC 1.2% | NM 6.6 |
32 | NM 10,600 | DE 1.0% | DE 6.1 |
33 | RI 7,400 | MI 0.8% | MI 4.8 |
34 | NE 5,600 | CT 0.7% | ND 4.5 |
35 | DE 4,600 | ND 0.6% | CT 4.2 |
36 | DC 4,300 | NE 0.6% | NE 3.8 |
37 | ND 2,600 | SD 0.5% | SD 3.6 |
38 | SD 2,400 | IN 0.5% | VT 2.9 |
39 | IA 2,200 | VT 0.4% | IN 2.9 |
40 | VT 1,500 | AK 0.3% | AK 1.6 |
US 1,870,000 | US 1.2% | US 7.3 |
Between November 2016 and November 2017, Bureau of Labor Statistics (BLS) data shows the total number of employed in California increased by 351,400 (seasonally adjusted), or 18.8% of the total net employment gains in this period for the US. Based on the total numbers, California returned to 1st place ahead of Florida (which has a civilian working age population only 55% as large as California’s) at 320,100 and Texas (69% as large) at 256,700. Measured by percentage change in employment over the year, California improved to 19th highest. Adjusted for working age population, California also rose to 19th.
Nonfarm Jobs Up 47,400
EDD reported that between October and November 2017, seasonally adjusted nonfarm wage and salary jobs grew 47,400. October’s gains were revised to 45,400 from the previously reported 31,700.
In the not seasonally adjusted nonfarm numbers overall, hiring saw increases in all but 3 industries over the year. The change in total payroll jobs from November 2016 saw the largest increases in Social Assistance (44,500), Construction (44,300), and Government (43,700). Declines were in Administrative & Support & Waste Services (-6,800), Manufacturing (-4,100), and Mining & Logging (-400).
Not Seasonally Adjusted Payroll Jobs | Nov 2017 | Oct 2017 | Change Nov 2017 – Oct 2017 | Change Nov 2017 – Nov 2016 |
---|---|---|---|---|
Total Farm | 402,800 | 458,800 | -56,000 | -300 |
Mining and Logging | 23,200 | 23,400 | -200 | -400 |
Construction | 841,800 | 843,900 | -2,100 | 44,300 |
Manufacturing | 1,295,800 | 1,301,600 | -5,800 | -4,100 |
Wholesale Trade | 742,400 | 739,700 | 2,700 | 13,700 |
Retail Trade | 1,764,700 | 1,696,000 | 68,700 | 3,200 |
Utilities | 58,300 | 58,200 | 100 | -300 |
Transportation & Warehousing | 555,100 | 547,600 | 7,500 | 11,100 |
Information | 540,400 | 540,000 | 400 | 7,900 |
Finance & Insurance | 550,400 | 551,200 | -800 | 2,100 |
Real Estate & Rental & Leasing | 287,100 | 285,300 | 1,800 | 5,200 |
Professional, Scientific & Technical Services | 1,238,100 | 1,234,100 | 4,000 | 8,700 |
Management of Companies & Enterprises | 232,000 | 230,700 | 1,300 | 4,500 |
Administrative & Support & Waste Services | 1,107,500 | 1,109,400 | -1,900 | -6,800 |
Educational Services | 388,700 | 383,500 | 5,200 | 17,200 |
Health Care | 1,501,500 | 1,496,200 | 5,300 | 20,700 |
Social Assistance | 777,700 | 776,000 | 1,700 | 44,500 |
Arts, Entertainment & Recreation | 307,100 | 306,400 | 700 | 9,600 |
Accommodation | 225,300 | 224,500 | 800 | 5,500 |
Food Services | 1,428,000 | 1,426,100 | 1,900 | 39,600 |
Other Services | 583,600 | 584,500 | -900 | 16,900 |
Government | 2,618,800 | 2,600,100 | 18,700 | 43,700 |
Total Nonfarm | 17,067,500 | 16,958,400 | 109,100 | 286,800 |
Total Wage and Salary | 17,470,300 | 17,417,200 | 53,100 | 286,500 |
At 288,300, California showed the second highest increase in seasonally adjusted nonfarm jobs among the states from November 2016 to November 2017, behind Texas at 330,600. By percentage growth in jobs, California rose to 12th highest at 1.7%, above the US average of 1.4%. By population adjusted jobs growth, California rose to 15th highest.
Rank | Number of Jobs | Employment Growth (%) | Population Adjusted (job growth per 1,000 civilian noninstitutional population) |
---|---|---|---|
1 | TX 330,600 | UT 2.8% | UT 18.6 |
2 | CA 288,300 | TX 2.7% | TX 15.7 |
3 | FL 195,000 | NV 2.7% | NV 15.2 |
4 | NY 116,800 | FL 2.3% | DC 14.0 |
5 | GA 85,200 | ID 2.3% | MD 12.8 |
6 | NC 71,500 | MD 2.2% | ID 12.6 |
7 | WA 69,100 | SC 2.2% | WA 12.0 |
8 | MA 65,200 | WA 2.1% | MA 11.8 |
9 | PA 62,600 | OR 2.0% | FL 11.7 |
10 | MD 60,700 | GA 1.9% | SC 11.5 |
11 | MI 46,300 | MA 1.8% | OR 11.0 |
12 | CO 45,300 | CA 1.7% | GA 10.7 |
13 | SC 44,800 | CO 1.7% | CO 10.4 |
14 | NJ 41,900 | AL 1.7% | VT 9.7 |
15 | AZ 41,300 | AR 1.7% | CA 9.4 |
16 | UT 41,200 | NC 1.6% | IA 9.3 |
17 | WI 40,600 | VT 1.6% | NC 9.0 |
18 | OH 38,600 | AZ 1.5% | AR 8.9 |
19 | OR 36,300 | IA 1.4% | WI 8.9 |
20 | TN 36,200 | WI 1.4% | AL 8.7 |
21 | NV 35,100 | KY 1.3% | NH 8.0 |
22 | VA 33,700 | NH 1.3% | MN 7.7 |
23 | MN 33,500 | NY 1.2% | AZ 7.6 |
24 | AL 33,400 | NM 1.2% | KY 7.4 |
25 | MO 30,200 | TN 1.2% | NY 7.4 |
26 | IL 25,900 | OK 1.2% | NE 6.9 |
27 | KY 25,600 | MN 1.1% | TN 6.9 |
28 | IA 22,700 | RI 1.1% | RI 6.4 |
29 | IN 21,000 | MS 1.1% | OK 6.4 |
30 | AR 20,600 | MI 1.1% | MO 6.3 |
31 | OK 19,100 | PA 1.1% | NM 6.3 |
32 | ID 16,200 | MO 1.1% | PA 6.1 |
33 | MS 12,200 | NJ 1.0% | NJ 5.9 |
US 2,071,000 | US 1.4% | US 8.1 |
Five Industries Below 2007 Pre-Recession Job Levels
Comparing the number of jobs by industry in November 2017 (not seasonally adjusted), 5 industries had employment below the 2007 pre-recession levels. The highest gain industries were led by lower wage Food Services, Health Care (with a relatively higher mix of lower and higher wage occupations), lower wage Social Assistance, 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. Construction losses, however, have begun to contract.
Job Gains by Wage Level
In the May Budget Revision, the Governor again pointed to the increasing share of lower wage jobs as one of the prime causes of slowing state revenues growth: The level of wages has been revised downward, and cash receipts have been significantly below forecast. The following chart illustrates this trend for total wage and salary jobs, according to the industry wage classification used previously in other Center analyses of this issue. As indicated, about half of net jobs growth since the recession has been in the low wage industries.
Two-Tier Economy Persists—Central Valley Unemployment More than Twice as High as Bay Area
While unemployment rates have improved in the interior counties as a result of seasonal employment, the level of unemployment rates (all data is not seasonally adjusted) continues to vary widely across the state, ranging from 2.7% in the Bay Area to more than twice as large at 7.3% in the Central Valley.
Not Seasonally Adjusted | Unemployment Rate (%) November 2017 |
---|---|
California | 4.0 |
Bay Area | 2.7 |
Orange County | 2.8 |
Sacramento | 3.7 |
San Diego/Imperial | 4.0 |
Los Angeles | 4.1 |
Inland Empire | 4.1 |
Central Sierra | 4.2 |
Central Coast | 4.9 |
Upstate California | 5.3 |
Central Valley | 7.3 |
By Legislative District:
Lowest 10 Unemployment Rates | |||||
---|---|---|---|---|---|
CD18 (Eshoo-D) | 2.2 | SD13 (Hill-D) | 2.0 | AD16 (Baker-R) | 1.9 |
CD12 (Pelosi-D) | 2.2 | SD11 (Wiener-D) | 2.3 | AD22 (Mullin-D) | 1.9 |
CD52 (Peters-D) | 2.3 | SD37 (Moorlach-R) | 2.5 | AD24 (Berman-D) | 2.1 |
CD14 (Speier-D) | 2.4 | SD39 (Atkins-D) | 2.5 | AD28 (Low-D) | 2.2 |
CD45 (Walters-R) | 2.4 | SD36 (Bates-R) | 2.6 | AD17 (Chiu-D) | 2.3 |
CD17 (Khanna-D) | 2.4 | SD07 (Glazer-D) | 2.7 | AD77 (Maienschein-R) | 2.3 |
CD15 (Swalwell-D) | 2.6 | SD10 (Wieckowski-D) | 2.8 | AD19 (Ting-D) | 2.4 |
CD49 (Issa-R) | 2.6 | SD15 (Beall-D) | 2.8 | AD73 (Brough-R) | 2.4 |
CD48 (Rohrabacher-R) | 2.7 | SD26 (Allen-D) | 3.0 | AD78 (Gloria-D) | 2.4 |
CD02 (Huffman-D) | 2.8 | SD02 (McGuire-D) | 3.1 | AD25 (Chu-D) | 2.5 |
Highest 10 Unemployment Rates | |||||
---|---|---|---|---|---|
CD03 (Garamendi-D) | 5.0 | SD04 (Nielsen-R) | 4.8 | AD03 (Gallagher-R) | 5.7 |
CD20 (Panetta-D) | 5.6 | SD24 (de León-D) | 4.8 | AD34 (Fong-R) | 5.8 |
CD09 (McNerney-D) | 5.6 | SD30 (Mitchell-D) | 4.8 | AD64 (Gipson-D) | 5.9 |
CD44 (Barragán-D) | 5.8 | SD35 (Bradford-D) | 5.0 | AD13 (Eggman-D) | 6.6 |
CD10 (Denham-R) | 5.9 | SD05 (Galgiani-D) | 6.0 | AD23 (Patterson-R) | 6.7 |
CD23 (McCarthy-R) | 6.4 | SD08 (Berryhill-R) | 6.1 | AD21 (Gray-D) | 7.8 |
CD22 (Nunes-R) | 7.2 | SD16 (Fuller-R) | 6.2 | AD31 (Arambula-D) | 8.7 |
CD16 (Costa-D) | 8.4 | SD12 (Cannella-R) | 7.0 | AD26 (Mathis-R) | 8.7 |
CD51 (Vargas-D) | 8.7 | SD40 (Hueso-D) | 7.3 | AD32 (Salas-D) | 9.0 |
CD21 (Valadao-R) | 8.8 | SD14 (Vidak-R) | 9.8 | AD56 (Garcia-D) | 10.2 |
Bay Area Provided 39% of Net Employment Growth Since Recession
Containing 19.4% of the state’s population, the Bay Area was responsible for 38.9% of the net growth in employment since the pre-recession peaks in 2007. Los Angeles Region provided the next largest share at 19.7%, but spread over 29.2% of the population. Inland Empire is the only other region continuing to show employment gains above their population share.
Six California MSAs in the 10 Worst Unemployment Rates Nationally
According to BLS data, of the 10 Metropolitan Statistical Areas (MSAs) with the worst unemployment rates nationally, 6 are in California. Of the 20 worst, 10 are in California.
Rank | Metropolitan Area | October 2017 Rate |
---|---|---|
369 | Danville, IL Metropolitan Statistical Area | 6.0 |
369 | Rocky Mount, NC Metropolitan Statistical Area | 6.0 |
371 | Anchorage, AK Metropolitan Statistical Area | 6.1 |
372 | Las Cruces, NM Metropolitan Statistical Area | 6.2 |
372 | Stockton-Lodi, CA Metropolitan Statistical Area | 6.2 |
374 | Beaumont-Port Arthur, TX Metropolitan Statistical Area | 6.3 |
374 | Modesto, CA Metropolitan Statistical Area | 6.3 |
376 | Farmington, NM Metropolitan Statistical Area | 6.5 |
376 | Yuba City, CA Metropolitan Statistical Area | 6.5 |
378 | Madera, CA Metropolitan Statistical Area | 6.6 |
378 | Vineland-Bridgeton, NJ Metropolitan Statistical Area | 6.6 |
380 | Atlantic City-Hammonton, NJ Metropolitan Statistical Area | 6.7 |
381 | Merced, CA Metropolitan Statistical Area | 7.2 |
382 | Hanford-Corcoran, CA Metropolitan Statistical Area | 7.4 |
383 | Bakersfield, CA Metropolitan Statistical Area | 7.5 |
384 | Fresno, CA Metropolitan Statistical Area | 7.8 |
384 | Ocean City, NJ Metropolitan Statistical Area | 7.8 |
386 | Visalia-Porterville, CA Metropolitan Statistical Area | 9.4 |
387 | Yuma, AZ Metropolitan Statistical Area | 18.0 |
388 | El Centro, CA Metropolitan Statistical Area | 20.9 |
Note: All data sources, methodologies, and historical data series available at CenterforJobs.org.