Download November 2018 Jobs Report
Highlights for policy makers:
- Unemployment Rate Level at 4.1%; Total Employment Up 73,200
- Labor Force Participation Rate Level at 62.3%
- State Employment Growth Rankings—California 2nd Highest
- Nonfarm Jobs Up 30,700
- Four Industries Still 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 37.6% of Net Employment Growth Since Recession
- Eight California MSAs in the 10 Worst Unemployment Rates Nationally
Unemployment Rate Level at 4.1%; Total Employment up 73,200
The Labor Force data for November 2018 (seasonally adjusted; California preliminary) is shown below, along with the change from the prior month:
| Seasonally Adjusted | California | US | ||
|---|---|---|---|---|
| Nov 2018 | Change from Oct 2018 | Nov 2018 | Change from Oct 2018 | |
| Unemployment Rate | 4.1% | 0.0 | 3.7% | 0.0 |
| Labor Force | 19,517,200 | 0.4% | 162,770,000 | 0.1% |
| Participation Rate | 62.3% | 0.2 | 62.9% | 0.0 |
| Employment | 18,710,500 | 0.4% | 156,795,000 | 0.1% |
| Unemployment | 806,600 | 0.3% | 5,975,000 | -1.6% |
The related not seasonally adjusted numbers (California preliminary), with the change from November 2017:
| Not Seasonally Adjusted | California | US | ||
|---|---|---|---|---|
| Nov 2018 | Change from Nov 2017 | Nov 2018 | Change from Nov 2017 | |
| Unemployment Rate | 3.9% | -0.3 | 3.5% | -0.4 |
| Labor Force | 19,715,600 | 1.7% | 162,665,000 | 1.4% |
| Participation Rate | 62.9% | 0.6 | 62.9% | 0.2 |
| Employment | 18,938,100 | 2.0% | 157,015,000 | 1.8% |
| Unemployment | 777,500 | -4.3% | 5,650,000 | -10.1% |
California Employment Development Department’s (EDD) latest data shows on a seasonally adjusted basis, total employment rose 73,200 from October, while the number of unemployed rose 2,300. The labor force eased up by 75,600.
California’s seasonally adjusted unemployment rate improved to 4.1%, the lowest level in the current data series that began in 1976. California tied with Connecticut and Wyoming for the 14th highest unemployment rate among the states. The unadjusted rate dipped from 4.2% in November 2017 to 3.9%.
Total US employment saw a seasonally adjusted gain of 233,000 from October, while the number of unemployed dropped by 100,000 and the total labor force grew by 133,000. The national unemployment rate stayed at 3.7%.
Labor Force Participation Rate Level Up to 62.3%
California’s participation rate (seasonally adjusted) ) in November rose to 62.3%, while the US rate remained at 62.9%.
California’s labor force continued to show some growth, up 126,600 over the year ending November 2018, or 0.7% growth. The US as a whole grew by 2.2 million – a 1.4% expansion. While workers elsewhere continue to return to the workforce, California’s continued low rate has implications for future growth in the state, including the ability to sustain jobs expansion as fewer workers are available and continued effects on state and local budgets for higher social program spending compared to other states.
Considered by age, the prime working age groups in California (age 25-54 and 55-64) remain somewhat below their previous highs since 2000, with youth employment remaining below levels from a year ago. These trends in particular have long-term implications for income distributions in the state, as most studies indicate that work skills developed through early employment are correlated with long-term earnings potential. In contrast to the younger groups, persons 65 and older show a higher labor force participation rate compared to the prior low at the beginning of this period.
Labor Force Participation Rate by Age (12-month moving average)
| Prior Max | November 2018 | |
|---|---|---|
| Total | 67.2% | 62.2% |
| 16-19 | 46.8% | 27.0% |
| 20-24 | 76.4% | 65.7% |
| 25-54 | 82.1% | 79.2% |
| 55-64 | 66.3% | 64.1% |
| Prior Min | ||
| 65+ | 12.1% | 19.6% |
State Employment Growth Rankings—California 2nd Highest
Change in Employment, November 2017 – November 2018
| Rank | Number of Employed | Percentage Change | Population Adjusted (employment growth per 1,000 civilian noninstitutional population) |
|---|---|---|---|
| 1 | TX 290,500 | MA 5.0% | MA 31.8 |
| 2 | CA 184,800 | NV 3.5% | NV 20.9 |
| 3 | MA 178,200 | NM 3.0% | NM 16.1 |
| 4 | FL 177,700 | DE 2.6% | DE 15.2 |
| 5 | NY 122,900 | AZ 2.5% | CO 15.2 |
| 6 | GA 100,300 | IN 2.4% | NH 15.0 |
| 7 | AZ 80,800 | CO 2.3% | AZ 14.7 |
| 8 | IN 75,500 | NH 2.3% | IN 14.5 |
| 9 | NC 68,400 | TX 2.2% | TX 13.6 |
| 10 | VA 67,800 | AL 2.2% | GA 12.5 |
| 11 | CO 67,100 | GA 2.1% | AL 12.1 |
| 12 | PA 63,000 | ID 1.8% | ID 11.3 |
| 13 | WA 53,300 | FL 1.8% | FL 10.4 |
| 14 | NV 49,500 | OK 1.7% | VA 10.2 |
| 15 | AL 46,300 | VA 1.6% | OK 10.2 |
| 16 | IL 42,600 | RI 1.6% | NE 9.9 |
| 17 | MN 38,200 | WA 1.5% | RI 9.7 |
| 18 | MO 35,000 | NE 1.5% | IA 9.5 |
| 19 | MI 31,400 | NC 1.4% | WA 9.1 |
| 20 | OK 30,500 | IA 1.4% | MN 8.7 |
| 21 | NM 26,200 | NY 1.3% | NC 8.5 |
| 22 | TN 23,900 | MN 1.3% | NY 7.7 |
| 23 | IA 23,300 | MO 1.2% | SD 7.4 |
| 24 | KY 22,000 | KY 1.1% | DC 7.3 |
| 25 | NH 16,600 | DC 1.1% | MO 7.3 |
| 26 | NJ 16,500 | SD 1.1% | KY 6.3 |
| 27 | ID 14,900 | PA 1.0% | PA 6.1 |
| 28 | NE 14,500 | CA 1.0% | CA 5.9 |
| 29 | SC 14,100 | KS 0.9% | KS 5.6 |
| 30 | CT 12,900 | TN 0.8% | TN 4.5 |
| 31 | KS 12,500 | CT 0.7% | CT 4.5 |
| 32 | DE 11,700 | IL 0.7% | IL 4.2 |
| 33 | RI 8,400 | MI 0.7% | MI 3.9 |
| 34 | MS 7,400 | SC 0.6% | SC 3.5 |
| 35 | UT 7,200 | MS 0.6% | MS 3.2 |
| 36 | MD 6,800 | UT 0.5% | UT 3.2 |
| 37 | SD 4,900 | NJ 0.4% | NJ 2.3 |
| 38 | WI 4,400 | ME 0.4% | ME 2.2 |
| 39 | DC 4,200 | VT 0.3% | VT 1.7 |
| 40 | ME 2,400 | MD 0.2% | MD 1.4 |
| US 2,878,000 | US 1.9% | US 11.2 |
Between November 2017 and November 2018, Bureau of Labor Statistics (BLS) data shows the total number of employed in California increased by 184,800 (seasonally adjusted), or 6.4% of the total net employment gains in this period for the US. Based on the total numbers, California rose to 2nd highest. place behind Texas. Measured by percentage change in employment over the year, California rose to 28th highest. Adjusted for working age population, California was 28thas well.
Nonfarm Jobs Up 30,700
EDD reported that between October and November 2018, seasonally adjusted nonfarm wage and salary jobs grew by 30,700. October’s gains were revised to 36,800 from the previously reported 36,400.
In the not seasonally adjusted nonfarm numbers that allow a more detailed look at industry shifts, hiring saw increases in all but 4 industries over the year. The change in total payroll jobs from November 2017 saw the largest increases in higher wage Professional, Scientific & Technical Services (54,300), lower wage Food Services (44,100), and lower wage Social Assistance (43,500). Declines were led by Wholesale Trade (-3,000), Retail Trade (-2,000), and Mining & Logging (-400).
| Not Seasonally Adjusted Payroll Jobs | Nov 2018 | Oct 2018 | Change Nov 2018 – Oct 2018 | Change Nov 2018 – Nov 2017 |
|---|---|---|---|---|
| Total Farm | 418,300 | 463,600 | -45,300 | -6,600 |
| Mining and Logging | 22,200 | 22,700 | -500 | -400 |
| Construction | 864,200 | 868,500 | -4,300 | 29,100 |
| Manufacturing | 1,316,000 | 1,321,600 | -5,600 | 5,700 |
| Wholesale Trade | 723,900 | 723,500 | 400 | -3,000 |
| Retail Trade | 1,770,500 | 1,699,600 | 70,900 | -2,000 |
| Utilities | 58,500 | 58,300 | 200 | 600 |
| Transportation & Warehousing | 614,700 | 602,000 | 12,700 | 22,500 |
| Information | 548,100 | 551,500 | -3,400 | 8,000 |
| Finance & Insurance | 550,400 | 549,200 | 1,200 | 3,200 |
| Real Estate & Rental & Leasing | 288,300 | 288,900 | -600 | 1,800 |
| Professional, Scientific & Technical Services | 1,295,200 | 1,288,300 | 6,900 | 54,300 |
| Management of Companies & Enterprises | 234,900 | 234,600 | 300 | 400 |
| Administrative & Support & Waste Services | 1,160,400 | 1,162,400 | -2,000 | 36,900 |
| Educational Services | 385,400 | 381,600 | 3,800 | 4,100 |
| Health Care | 1,534,100 | 1,539,500 | -5,400 | 13,500 |
| Social Assistance | 828,600 | 827,500 | 1,100 | 43,500 |
| Arts, Entertainment & Recreation | 309,100 | 308,800 | 300 | 3,700 |
| Accommodation | 233,900 | 233,700 | 200 | 5,300 |
| Food Services | 1,475,700 | 1,467,800 | 7,900 | 44,100 |
| Other Services | 566,000 | 565,200 | 800 | -200 |
| Government | 2,647,100 | 2,628,000 | 19,100 | 36,900 |
| Total Nonfarm | 17,427,200 | 17,323,200 | 104,000 | 308,000 |
| Total Wage and Salary | 17,845,500 | 17,786,800 | 58,700 | 301,400 |
At a 299,800 increase, California remained at 2nd highest measured by seasonally adjusted nonfarm jobs among the states from November 2017 to November 2018, behind Texas at 365,400. By percentage growth in jobs, California fell to 20th highest at 1.8%, just above the US average. By population adjusted jobs growth, California was again 22nd highest.
Change in Nonfarm Jobs (seasonally adjusted), November 2017 – November 2018
| Rank | Number of Jobs | Employment Growth (%) | Population Adjusted (jobs growth per 1,000 civilian noninstitutional population) |
|---|---|---|---|
| 1 | TX 365,400 | NV 3.8% | NV 21.9 |
| 2 | CA 299,800 | AZ 3.6% | WY 20.1 |
| 3 | FL 241,600 | WY 3.2% | UT 19.3 |
| 4 | OH 116,400 | TX 3.0% | AZ 18.5 |
| 5 | NY 114,400 | WA 2.9% | TX 17.1 |
| 6 | AZ 101,600 | UT 2.9% | WA 16.9 |
| 7 | NC 100,700 | FL 2.8% | CO 15.6 |
| 8 | GA 99,000 | CO 2.6% | FL 14.2 |
| 9 | WA 99,000 | OR 2.5% | SD 14.0 |
| 10 | PA 78,700 | NC 2.3% | OR 13.9 |
| 11 | VA 75,100 | NH 2.2% | NH 13.7 |
| 12 | CO 69,100 | GA 2.2% | ND 12.8 |
| 13 | NJ 60,900 | SD 2.1% | OH 12.6 |
| 14 | TN 60,700 | NM 2.1% | NC 12.5 |
| 15 | MA 60,500 | OH 2.1% | GA 12.3 |
| 16 | IL 54,600 | HI 2.0% | HI 12.1 |
| 17 | NV 51,900 | TN 2.0% | TN 11.4 |
| 18 | MI 51,900 | VA 1.9% | VA 11.3 |
| 19 | OR 46,700 | ID 1.8% | NM 10.9 |
| 20 | WI 43,800 | CA 1.8% | MA 10.8 |
| 21 | UT 43,700 | ND 1.7% | ID 10.0 |
| 22 | MD 36,700 | AL 1.7% | CA 9.6 |
| 23 | MN 35,200 | OK 1.7% | OK 9.4 |
| 24 | AL 34,800 | MA 1.7% | AL 9.1 |
| 25 | SC 32,800 | MT 1.6% | MT 8.9 |
| US2,443,000 | US1.7% | US9.5 |
Four Industries Still below 2007 Pre-Recession Job Levels
Comparing the number of jobs by industry in November 2018 (not seasonally adjusted), 4 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 slowing, Construction was still higher than in recent years but still remains 55,600 below the 2007 level, and 102,100 (10.0%) below the previous high in 2006.
Job Gains by Wage Level
The following chart illustrates the trend for total wage and salary jobs by general wage level, according to the industry wage classification used previously in other Center analyses of this issue. As indicated, nearly half (44%) of net jobs growth since the recession has been in the lower wage industries. For the 12 months ending November 2018, lower wage industries accounted for over a quarter (28%) of new jobs, while middle class-blue collar jobs produced over a quarter (33%) as Construction levels remained higher compared to recent years.
Two-Tier Economy Persists—Central Valley Unemployment More than Twice as High as Bay Area
The level of unemployment rates (all data is not seasonally adjusted) continues to vary widely across the state, ranging from 2.5% in the Bay Area to more than twice as large at 6.6% in the Central Valley.
| Not Seasonally Adjusted | Unemployment Rate (%) November 2018 |
|---|---|
| California | 3.9 |
| Bay Area | 2.5 |
| Orange County | 2.8 |
| Sacramento | 3.5 |
| San Diego/Imperial | 3.8 |
| Central Sierra | 3.9 |
| Inland Empire | 3.9 |
| Central Coast | 4.1 |
| Los Angeles | 4.5 |
| Upstate California | 4.8 |
| Central Valley | 6.6 |
By Legislative District:
| Lowest 10 Unemployment Rates | |||||
|---|---|---|---|---|---|
| CD18 (Eshoo-D) | 1.9 | SD13 (Hill-D) | 1.9 | AD16 (Baker-Kahan-D) | 1.8 |
| CD12 (Pelosi-D) | 2.1 | SD11 (Wiener-D) | 2.2 | AD22 (Mullin-D) | 1.8 |
| CD17 (Khanna-D) | 2.2 | SD39 (Atkins-D) | 2.5 | AD24 (Berman-D) | 1.9 |
| CD52 (Peters-D) | 2.3 | SD36 (Bates-R) | 2.5 | AD28 (Low-D) | 2.0 |
| CD14 (Speier-D) | 2.3 | SD37 (Moorlach-R) | 2.5 | AD17 (Chiu-D) | 2.2 |
| CD15 (Swalwell-D) | 2.4 | SD15 (Beall-D) | 2.5 | AD25 (Chu-D) | 2.2 |
| CD45 (Walters-R) | 2.4 | SD10 (Wieckowski-D) | 2.6 | AD77 (Maienschein-D) | 2.3 |
| CD49 (Issa-R) | 2.4 | SD07 (Glazer-D) | 2.6 | AD19 (Ting-D) | 2.3 |
| CD48 (Rohrabacher-R) | 2.6 | SD02 (McGuire-D) | 2.9 | AD73 (Brough-R) | 2.3 |
| CD02 (Huffman-D) | 2.7 | SD34 (Umberg-D) | 3.0 | AD78 (Gloria-D) | 2.4 |
| Highest 10 Unemployment Rates | |||||
|---|---|---|---|---|---|
| CD29 (Cárdenas-D) | 5.2 | SD33 (Lara-D) | 5.2 | AD36 (Lackey-R) | 5.8 |
| CD10 (Denham-R) | 5.3 | SD24 (Durazo-D) | 5.2 | AD23 (Patterson-R) | 5.9 |
| CD40 (Roybal-Allard-D) | 5.3 | SD05 (Galgiani-D) | 5.4 | AD13 (Eggman-D) | 6.0 |
| CD43 (Waters-D) | 5.3 | SD30 (Mitchell-D) | 5.4 | AD59 (Jones-Sawyer-D) | 6.0 |
| CD23 (McCarthy-R) | 5.9 | SD08 (Borgeas-R) | 5.5 | AD64 (Gipson-D) | 6.6 |
| CD44 (Barragán-D) | 6.4 | SD35 (Bradford-D) | 5.7 | AD21 (Gray-D) | 6.9 |
| CD22 (Nunes-R) | 6.7 | SD16 (Grove-R) | 5.8 | AD31 (Arambula-D) | 8.2 |
| CD16 (Costa-D) | 7.4 | SD12 (M. Caballero-D) | 6.2 | AD32 (Salas-D) | 8.2 |
| CD21 (Valadao-R) | 8.1 | SD40 (Hueso-D) | 7.0 | AD26 (Mathis-R) | 8.4 |
| CD51 (Vargas-D) | 8.2 | SD14 (Hurtado-D) | 9.1 | AD56 (Garcia-D) | 9.5 |
Bay Area Provided 37.6% of Net Employment Growth Since Recession
Containing 19.6% of the state’s population, the Bay Area was responsible for 37.6% of the net growth in employment since the pre-recession peaks in 2007. Inland Empire continued to gain employment share, remaining in second place with 18.0%. Los Angeles Region, containing 29.1% of the population, accounted for the third largest share at 17.2%.
8 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, 8 are in California. Of the 20 worst, 10 are in California.
| Metropolitan Area | October 2018 Rate | Rank |
|---|---|---|
| El Centro, CA Metropolitan Statistical Area | 19.2 | 388 |
| Yuma, AZ Metropolitan Statistical Area | 17.7 | 387 |
| Visalia-Porterville, CA Metropolitan Statistical Area | 8.3 | 386 |
| Bakersfield, CA Metropolitan Statistical Area | 6.6 | 385 |
| Hanford-Corcoran, CA Metropolitan Statistical Area | 6.2 | 384 |
| Fresno, CA Metropolitan Statistical Area | 6.3 | 383 |
| Merced, CA Metropolitan Statistical Area | 6.1 | 382 |
| Madera, CA Metropolitan Statistical Area | 5.9 | 381 |
| Yuba City, CA Metropolitan Statistical Area | 5.7 | 380 |
| Ocean City, NJ Metropolitan Statistical Area | 5.6 | 379 |
| Danville, IL Metropolitan Statistical Area | 5.5 | 374 |
| McAllen-Edinburg-Mission, TX Metropolitan Statistical Area | 5.5 | 374 |
| Modesto, CA Metropolitan Statistical Area | 5.5 | 374 |
| Weirton-Steubenville, WV-OH Metropolitan Statistical Area | 5.5 | 374 |
| Youngstown-Warren-Boardman, OH-PA Metropolitan Statistical Area | 5.5 | 374 |
| Anchorage, AK Metropolitan Statistical Area | 5.3 | 370 |
| Decatur, IL Metropolitan Statistical Area | 5.3 | 370 |
| Lake Havasu City-Kingman, AZ Metropolitan Statistical Area | 5.3 | 370 |
| Sierravista-Douglas, AA Metropolitan Statistical Area | 5.3 | 370 |
| Stockton-Lodi, CA Metropolitan Statistical Area | 5.2 | 364 |
Note: All data sources, methodologies, and historical data series available at CenterforJobs.org/ca.