The Center for Jobs and the Economy has released our initial analysis of the October Employment Report from the California Employment Development Department. For additional information and data about the California economy visit www.centerforjobs.org/ca. Comparisons across states will be addressed in our full jobs report following release of the data by US Bureau of Labor Statistics on the 19th.
Weak Outcomes in the October Data
The October numbers continued to show relative weakness in the state economy. Nonfarm jobs (seasonally adjusted) dropped by 5,500 in the preliminary results. The results for September were revised down by 2,200 to a gain of 12,700. Over the past three months, nonfarm jobs have grown by only 6,000, compared to 74,200 in the same period in 2023.
The unemployment rate rose by 0.1 point to 5.4%. Total employment (seasonally adjusted) dropped by 5,800 over the month, while posting an 82,700 loss from the near-term peak experienced in May 2023. Total number of unemployed continued increasing by 13,100 over the month, bringing the total rise in unemployed to 322,400 since the near-term low seen in August 2022. The number of unemployed has now remained above 1 million every month so far this year.
California Labor Force
Rate
California’s reported unemployment rate (seasonally adjusted) rose 0.1 point to 5.4%. The US rate was unchanged at 4.1%.
Employment dropped by 5,800 (seasonally adjusted), with the total employment loss since the previous peak in May 2023 rising to 82,700.
Nationally, employment dropped by 368,000.
California unemployment rose by another 13.100, while US unemployment rose by 150,000. California unemployment has been above 1 million for the past 10 months in a row, the highest levels since the pandemic period in 2021.
Nonfarm Jobs
Change
Nonfarm wage and salary jobs dropped 5,500 in the preliminary results for October, while the August gains were lowered by 2,200 to a gain of 12,700.
For the US as a whole, nonfarm jobs were essentially unchanged with a gain of only 12,000. Due to the hurricane events, however, the response rate for the establishment survey used to estimate the job numbers was well below average although it still produced statistically significant results.
Expanding industries were dominated by Healthcare & Social Assistance (7,600) and followed by Private Education Services (1,800) and Transportation, Warehousing & Utilities (1,800). Six industries showed job losses, led by Administrative & Support & Waste & Remediation Services (-8,800), Government (-7,500), and Arts, Entertainment & Recreation (-1,900).
Counties with Double-Digit Unemployment
Unemployment Above
10%
The number of counties with an unemployment rate (not seasonally adjusted) at 10% or more remained at 1. The unadjusted rates ranged from 3.6% in San Mateo to 19.6% in Imperial.
