02/05/2023

Reports » Job Reports

October 2017 Job Report

 Highlights for policy makers:

 

Unemployment Rate Improves to 4.9%; Total Employment Gains 97,200

The Labor Force data for October 2017 (seasonally adjusted; California preliminary) is shown below, along with the change from the prior month:

Seasonally Adjusted California US
Oct 2017 Change from Sep 2017 Oct 2017 Change from Sep 2017
Unemployment Rate 4.9% -0.2 4.1% -0.1
Labor Force 19,358,000 0.3% 160,381,000 -0.5%
Participation Rate 62.4% 0.1 62.7% -0.4
Employment 18,405,900 0.5% 153,861,000 -0.3%
Unemployment 952,200 -3.5% 6,520,000 -4.1%
Source: California Employment Development Department; US Bureau of Labor Statistics

The related not seasonally adjusted numbers (California preliminary), with the change from October 2016:

Not Seasonally Adjusted California US
Oct 2017 Change from Oct 2016 Oct 2017 Change from Oct 2016
Unemployment Rate 4.3% -0.9 3.9% -0.8
Labor Force 19,353,400 0.8% 160,465,000 0.4%
Participation Rate 62.4% 0.0 62.7% -0.1
Employment 18,516,000 1.8% 154,223,000 1.2%
Unemployment 837,400 -16.9% 6,242,000 -16.2%
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 97,200 from September, while the number of unemployed dropped by 34,900. The labor force rose by 62,300.

California’s seasonally adjusted unemployment rate improved to 4.9%. California tied with Illinois, Mississippi, and New Jersey for the 8th highest unemployment rate among the states. The unadjusted rate dropped from 5.2% in October 2016 to 4.3%.

Total US employment saw a seasonally adjusted decline of 484,000 from September, while the number of unemployed dropped by 281,000. The national unemployment rate was down 0.1 point to 4.1%. The national labor force numbers eased by 765,000.

Labor Force Participation Rate Matches Lowest Level from 1976

California’s participation rate (seasonally adjusted) in October rose to 62.4%, while the US rate declined to 62.7%.

The seasonally adjusted California participation rate in October remained near the previous lows in 1976.

State Employment Growth Rankings—California Rose to 2nd Place

Change in Employment, October 2016 – October 2017
Rank Number of Employed Percentage Change Population Adjusted
(employment growth per 1,000 civilian
noninstitutional population)
1 FL 334,900 CO 4.4% CO 28.8
2 CA 261,200 OR 3.9% OR 23.0
3 TX 213,000 GA 3.7% UT 22.3
4 NY 179,500 TN 3.6% GA 21.9
5 GA 173,400 FL 3.6% WA 21.1
6 CO 125,200 WA 3.5% TN 20.8
7 WA 121,200 UT 3.3% MN 20.7
8 TN 108,700 AR 3.3% FL 20.0
9 VA 97,700 MN 3.1% AR 18.4
10 NC 92,000 MD 2.8% MD 18.0
11 MN 89,500 KY 2.7% KY 15.1
12 MD 85,000 AZ 2.6% VA 14.9
13 AZ 80,100 VA 2.4% AZ 14.8
14 OR 75,900 WI 2.2% WI 14.3
15 WI 65,400 NV 2.1% ID 12.4
16 OH 55,900 ID 2.0% NV 12.2
17 KY 52,300 NY 2.0% NC 11.6
18 MA 51,200 NC 2.0% NY 11.3
19 UT 49,400 SC 1.8% ME 10.3
20 AR 42,500 ME 1.7% TX 10.2
21 SC 38,500 TX 1.7% SC 9.9
22 MI 33,100 AL 1.6% MA 9.2
23 AL 32,700 RI 1.5% RI 9.2
24 NV 28,100 MA 1.5% AL 8.6
25 IN 22,200 CA 1.4% CA 8.5
26 OK 21,400 KS 1.2% KS 7.9
27 CT 18,500 OK 1.2% DC 7.8
28 KS 17,500 DC 1.2% OK 7.1
29 ID 15,900 DE 1.1% DE 6.6
30 ME 11,300 NM 1.1% CT 6.4
31 NM 9,100 OH 1.0% ND 6.2
32 LA 9,000 CT 1.0% OH 6.1
33 RI 7,900 ND 0.9% NM 5.6
34 NJ 6,700 MI 0.7% IN 4.3
35 NE 5,400 IN 0.7% MI 4.2
36 DE 5,000 NE 0.6% NE 3.7
37 DC 4,400 SD 0.5% SD 3.3
38 ND 3,600 LA 0.5% LA 2.5
39 WV 2,700 WV 0.4% AK 2.2
40 SD 2,200 AK 0.4% VT 1.9
US 1,959,000 US 1.3% US 7.7
Source: US Bureau of Labor Statistics, Seasonally Adjusted

Between October 2016 and October 2017, Bureau of Labor Statistics (BLS) data shows the total number of employed in California increased by 261,200 (seasonally adjusted), or 13.3% of the total net employment gains in this period for the US. California rose to 2nd place behind Florida (which has a civilian working age population only 55% as large as California’s) at 334,900 and ahead of Texas (69% as large) at 213,000. Measured by percentage change in employment over the year, California improved to 25th highest. Adjusted for working age population, California also rose to 25th.

Nonfarm Jobs Up 31,700

EDD reported that between September and October 2017, seasonally adjusted nonfarm wage and salary jobs grew 31,700. September’s gains were revised to 50,300 from the previously reported 52,200.

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 October 2016 saw the largest increases in Construction (45,100), Social Assistance (41,700), and Government (35,700). Declines were in Manufacturing (-4,900), Mining & Logging (-600), and Utilities (-300).

Not Seasonally Adjusted Payroll Jobs Oct 2017 Sep 2017 Change Oct 2017 – Sep 2017 Change Oct 2017 – Oct 2016
Total Farm 458,800 481,200 -22,400 -1,700
Mining and Logging 23,400 23,500 -100 -600
Construction 840,300 842,500 -2,200 45,100
Manufacturing 1,300,500 1,311,400 -10,900 -4,900
Wholesale Trade 739,700 738,500 1,200 13,400
Retail Trade 1,693,500 1,676,300 17,200 3,100
Utilities 58,300 58,400 -100 -300
Transportation & Warehousing 546,000 542,500 3,500 12,400
Information 534,500 534,500 0 5,500
Finance & Insurance 551,500 549,700 1,800 2,800
Real Estate & Rental & Leasing 285,700 283,400 2,300 1,800
Professional, Scientific & Technical Services 1,234,300 1,225,000 9,300 4,000
Management of Companies & Enterprises 230,800 230,400 400 4,400
Administrative & Support & Waste Services 1,109,500 1,112,800 -3,300 3,100
Educational Services 383,400 363,200 20,200 15,500
Health Care 1,496,600 1,488,900 7,700 19,300
Social Assistance 777,800 765,700 12,100 41,700
Arts, Entertainment & Recreation 306,700 307,900 -1,200 5,500
Accommodation 224,700 224,700 0 4,200
Food Services 1,423,700 1,418,600 5,100 28,300
Other Services 585,200 581,300 3,900 18,200
Government 2,598,600 2,526,100 72,500 35,700
Total Nonfarm 16,944,700 16,805,300 139,400 258,200
Total Wage and Salary 17,403,500 17,286,500 117,000 256,500
Source: California Employment Development Department

At 256,800, California showed the second highest increase in seasonally adjusted nonfarm jobs among the states from October 2016 to October 2017, behind Texas at 316,100. By percentage growth in jobs, California dropped to 15th highest at 1.5%, near the US average of 1.4%. By population adjusted jobs growth, California dropped to 18th highest.

Change in Nonfarm Jobs (seasonally adjusted), October 2016 – October 2017
Rank Number of Jobs Employment Growth (%) Population Adjusted
(job growth per 1,000 civilian
noninstitutional population)
1 TX 316,100 NV 2.8% UT 17.6
2 CA 256,800 UT 2.7% NV 15.8
3 FL 197,500 TX 2.6% TX 15.1
4 NY 102,600 OR 2.5% OR 14.0
5 GA 87,800 ID 2.4% DC 13.2
6 NC 75,200 FL 2.3% ID 13.0
7 MA 69,000 WA 2.1% MA 12.5
8 WA 68,500 SC 2.1% WA 11.9
9 PA 65,800 MD 2.0% FL 11.8
10 OH 59,400 GA 2.0% MD 11.5
11 MD 54,400 MA 1.9% GA 11.1
12 OR 46,300 AR 1.9% SC 10.9
13 MI 45,100 NC 1.7% AR 10.1
14 MN 42,600 NM 1.6% MN 9.8
15 SC 42,500 CA 1.5% NC 9.5
16 WI 42,400 KY 1.5% WI 9.3
17 UT 39,000 AL 1.5% CO 8.7
18 CO 37,800 MN 1.5% CA 8.4
19 NV 36,600 WI 1.4% KY 8.3
20 TN 34,800 CO 1.4% NM 8.2
21 VA 33,700 MT 1.2% AL 7.6
22 AZ 31,500 OK 1.2% MT 7.0
23 MO 30,700 TN 1.2% OK 6.7
24 NJ 30,000 AZ 1.2% NE 6.7
25 IN 29,400 PA 1.1% TN 6.6
26 AL 29,200 HI 1.1% OH 6.5
27 KY 28,600 NY 1.1% HI 6.5
28 AR 23,500 OH 1.1% NY 6.5
29 OK 20,200 MO 1.1% MO 6.4
30 IL 17,800 MI 1.0% PA 6.4
31 ID 16,700 VT 1.0% VT 6.2
32 IA 13,500 NE 1.0% AZ 5.8
33 NM 13,200 IN 0.9% NH 5.8
US 2,004,000 US 1.4% US 7.9
Source: US Bureau of Labor Statistics

Four 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 October 2017 (not seasonally adjusted), the state improved to 4 industries with 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.

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, half of net jobs growth since the recession has been in the low wage industries. Middle Class-blue collar jobs continue to show a decline.

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 3.1% in the Bay Area to more than twice as large at 7.3% in the Central Valley.

Not Seasonally Adjusted Unemployment Rate (%) October 2017
California 4.3
Bay Area 3.1
Orange County 3.3
Sacramento 4.1
Central Coast 4.2
Los Angeles 4.3
Central Sierra 4.5
San Diego/Imperial 4.5
Inland Empire 4.8
Upstate California 5.0
Central Valley 7.3

By Legislative District:

Lowest 10 Unemployment Rates
CD18 (Eshoo-D) 2.4 SD13 (Hill-D) 2.3 AD16 (Baker-R) 2.2
CD12 (Pelosi-D) 2.5 SD11 (Wiener-D) 2.7 AD22 (Mullin-D) 2.2
CD14 (Speier-D) 2.7 SD37 (Moorlach-R) 2.9 AD24 (Berman-D) 2.4
CD45 (Walters-R) 2.7 SD39 (Atkins-D) 2.9 AD28 (Low-D) 2.5
CD52 (Peters-D) 2.7 SD36 (Bates-R) 3.0 AD17 (Chiu-D) 2.7
CD17 (Khanna-D) 2.8 SD07 (Glazer-D) 3.1 AD77 (Maienschein-R) 2.7
CD15 (Swalwell-D) 3.0 SD10 (Wieckowski-D) 3.2 AD19 (Ting-D) 2.8
CD49 (Issa-R) 3.0 SD15 (Beall-D) 3.2 AD25 (Chu-D) 2.8
CD02 (Huffman-D) 3.1 SD26 (Allen-D) 3.2 AD73 (Brough-R) 2.8
CD33 (Lieu-D) 3.1 SD02 (McGuire-D) 3.4 AD78 (Gloria-D) 2.8
Highest 10 Unemployment Rates
CD36 (Ruiz-D) 5.5 SD21 (Wilk-R) 5.1 AD80 (Gonzalez-D) 5.8
CD41 (Takano-D) 5.5 SD24 (de León-D) 5.1 AD34 (Fong-R) 5.9
CD09 (McNerney-D) 5.8 SD30 (Mitchell-D) 5.1 AD64 (Gipson-D) 6.3
CD10 (Denham-R) 6.0 SD35 (Bradford-D) 5.3 AD13 (Eggman-D) 6.7
CD44 (Barragán-D) 6.1 SD05 (Galgiani-D) 6.0 AD23 (Patterson-R) 6.8
CD23 (McCarthy-R) 6.6 SD08 (Berryhill-R) 6.3 AD21 (Gray-D) 7.5
CD22 (Nunes-R) 7.5 SD12 (Cannella-R) 6.4 AD31 (Arambula-D) 8.9
CD16 (Costa-D) 8.2 SD16 (Fuller-R) 6.5 AD26 (Mathis-R) 9.1
CD21 (Valadao-R) 8.9 SD40 (Hueso-D) 8.0 AD32 (Salas-D) 9.1
CD51 (Vargas-D) 9.6 SD14 (Vidak-R) 10.0 AD56 (Garcia-D) 11.2

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 21.4%, 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 September 2017 Rate
369 Anchorage, AK Metropolitan Statistical Area 6.3
370 Brownsville-Harlingen, TX Metropolitan Statistical Area 6.4
371 Las Cruces, NM Metropolitan Statistical Area 6.5
371 Modesto, CA Metropolitan Statistical Area 6.5
373 Atlantic City-Hammonton, NJ Metropolitan Statistical Area 6.6
373 Madera, CA Metropolitan Statistical Area 6.6
373 Stockton-Lodi, CA Metropolitan Statistical Area 6.6
376 Vineland-Bridgeton, NJ Metropolitan Statistical Area 6.7
377 Yuba City, CA Metropolitan Statistical Area 6.8
378 Farmington, NM Metropolitan Statistical Area 6.9
378 McAllen-Edinburg-Mission, TX Metropolitan Statistical Area 6.9
380 Youngstown-Warren-Boardman, OH-PA Metropolitan Statistical Area 7.1
381 Fresno, CA Metropolitan Statistical Area 7.5
381 Hanford-Corcoran, CA Metropolitan Statistical Area 7.5
381 Merced, CA Metropolitan Statistical Area 7.5
384 Bakersfield, CA Metropolitan Statistical Area 8.1
384 Beaumont-Port Arthur, TX Metropolitan Statistical Area 8.1
386 Visalia-Porterville, CA Metropolitan Statistical Area 9.5
387 Yuma, AZ Metropolitan Statistical Area 19.9
388 El Centro, CA Metropolitan Statistical Area 22.6

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