04/26/2024

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November 2017 Job Report

 Highlights for policy makers:

 

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

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%
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 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

Change in Employment, November 2016 – November 2017
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
Source: US Bureau of Labor Statistics, Seasonally Adjusted

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
Source: California Employment Development Department

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.

Change in Nonfarm Jobs (seasonally adjusted), November 2016 – November 2017
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
Source: US Bureau of Labor Statistics

Five Industries Below 2007 Pre-Recession Job Levels

Source: California Employment Development Department, not seasonally adjusted; wages are running 4 quarter average from QCEW wage data

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.

Source: Analysis of California Employment Development Department data, not seasonally adjusted

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.