09/17/2024

Reports » Job Reports

September 2014

Highlights for policy makers:

Unemployment Rate Improves to 7.3%; Total Employment Climbs 83,400

The Labor Force data for September 2014 (seasonally adjusted; California preliminary) is shown below, along with the change from the prior month:

Seasonally Adjusted California US

Sep 2014 Change from Aug 2014 Sep 2014 Change from Aug 2014
Unemployment Rate 7.3 -0.1 5.9 -0.2
Labor Force 18,668,100 0.4% 155,862,000 -0.1%
Participation Rate 62.1 0.2 62.7 -0.1
Employment 17,306,900 0.5% 146,600,000 0.2%
Unemployment 1,361,200 -1.0% 9,262,000 -3.4%

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

The related not seasonally adjusted numbers (California preliminary), with the change from September 2013:

Not Seasonally Adjusted California US

Sep 2014 Change From Sep 2013 Sep 2014 Change From Sep 2013
Unemployment Rate 6.9 -1.6 5.7 -1.3
Labor Force 18,759,200 0.6% 155,903,000 0.2%
Participation Rate 62.4 -0.3 62.8 -0.4
Employment 17,459,000 2.3% 146,941,000 1.6%
Unemployment 1,300,100 -17.6% 8,962,000 -17.7%

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 grew by 83,400, while the number of unemployed dropped by 14,200. California’s seasonally adjusted unemployment rate declined slightly to 7.3%. The unadjusted rate dropped 0.6 points from August 2014 to 6.9% in September 2014, the lowest since June 2008.

By comparison, total US employment grew 0.2% (seasonally adjusted increase of 232,000), while the number of unemployed decreased even more sharply by 3.4% (seasonally adjusted decrease of 329,000).

California’s seasonally adjusted unemployment rate now stands 24% higher than the national rate. California was tied with Nevada and Tennessee for the 4th highest unemployment rate.

Between September 2013 and September 2014, Bureau of Labor Statistics (BLS) data shows the total number of employed increased by 390,662 (not seasonally adjusted). This increase was the highest among the states, ahead of Texas (311,962) and Florida (301,482).

Labor Force Participation Rate Remains at 1976 Levels

The state’s seasonally adjusted labor force participation 62.1% is marginally improved from August, but still remains at a level last seen in 1976

1/5 of Total Employed in Part Time Work

The percentage of part time workers remained at 20.1% of total employment, with 7.1% working part time for economic reasons (primarily the lack of full time jobs).

California (%) US (%)
Sep 2014 Aug 2014 Sep 2014 Aug 2014
Total Part Time Employed 20.1 20.1 18.3 18.4
Part Time Employed for Economic Reasons 7.1 7.1 5.1 5.2

Nonfarm Jobs Decrease 9,800

EDD reported that between August and September 2014, seasonally adjusted nonfarm payroll jobs decreased by 9,800. Not seasonally adjusted, nonfarm payroll jobs grew by 68,100.

Looking at the not seasonally adjusted numbers, the change in nonfarm payroll jobs from August 2014 saw the largest increases in Government (62,500) and Educational Services (16,400) as students returned to school, Administrative & Support & Waste Services (11,100), and Transportation, Warehousing & Utilities (3,900) as trade related to the holiday season begins picking up. Biggest declines were in Other Services (-5,700), continued drops in Finance & Insurance (-2,100), and Manufacturing (-1,700). Overall, the unadjusted Total Nonfarm payroll jobs increased 68,100 from August, dominated by the seasonal increases in school-related jobs.

Not Seasonally Adjusted Payroll Jobs Aug 2014 Sep 2014 Change Sep 2014 – Aug 2014 Change Sep 2014 – Sep 2013
Total Farm 464,300 462,600 -1,700 -900
Mining and Logging 32,900 32,800 -100 1,600
Construction 694,800 697,100 2,300 40,400
Manufacturing 1,268,600 1,266,900 -1,700 -3,500
Wholesale Trade 711,100 713,800 2,700 9,600
Retail Trade 1,616,300 1,616,200 -100 23,600
Transportation, Warehousing and Utilities 512,900 516,800 3,900, 7,700
Information 477,800 476,000 -1,800 22,300
Finance and Insurance 515,100 513,400 -2,100 -9,000
Real Estate and Rental and Leasing 266,200 266,300 100 5,600
Professional, Scientific & Technical Services 1,184,400 1,186,500 2,100 49,200
Management of Companies and Enterprises 226,000 226,000 0 8,500
Administrative & Support & Waste Services 1,041,200 1,052,300 11,100 52,600
Educational Services 325,300 341,700 16,400 4,300
Health Care and Social Assistance 2,034,400 2,034,100 -300 64,100
Individual and Family Services 538,100 535,100 -3,000 20,300
Arts, Entertainment, and Recreation 280,500 272,200 -8,300 4,100
Accommodation and Food Service 1,474,900 1,462,000 -12,900 35,700
Other Services 525,200 519,500 -5,700 3,000
Government 2,262,000 2,324,500 62,500 -7,400
Total Nonfarm 15,449,600 15,517,700 68,100 312,400
Total Wage and Salary 15,913,900 15,980,300 66,400 311,500

Source: California Employment Development Department

7 Industries Remain Below 2007 Pre-Recession Job Levels; 12 Above

Source: California Employment Development Department, Wage & Salary Jobs (seasonally adjusted), Average Weekly Wage (Q1 2014)

Comparing the number of jobs by industry in September 2014 (seasonally adjusted), 7 industries remain below the 2007 pre-recession levels and 12 are above. As indicated in the figure above, growth has been primarily in the lower wage and higher wage industries. Significant job growth in industries paying above $50,000 a year average wage has been limited to Professional, Scientific & Technical Services and Management of Companies & Enterprises. All other industries in this wage category remain near or significantly below the 2007 average employment levels.

6 Counties Remain in Double-Digit Unemployment, Improved from 11 in August

Two-Tier Economy Persists

Unemployment rates and employment (all data is not seasonally adjusted) continue to vary widely across the state, with the spread between regions remaining essentially the same at 1.9.

Not Seasonally Adjusted Unemployment Rate (%) Aug 2014
California 6.9
Orange County 5.1
Bay Area 5.1
Central Coast 6.1
Sacramento Region 6.6
San Diego/Imperial 6.7
Central Sierra 7.0
Los Angeles 7.6
Upsate California 8.0
Inland Empire 8.2
Central Valley 9.6
Ratio of Highest to Lowest Rate 1.91

By County:

Lowest 3 Unemployment Rates

Marin County 3.9
San Mateo County 4.1
Napa County 4.4

Highest 3 Unemployment Rates

Tulare County 11.2
Colusa County 11.3
Imperial County 23.9

Ratio of Highest to Lowest Rate: 6.13

By Legislative District:

Lowest 10 Unemployment Rates

SD 13 (Hill – D) 4.0 AD 22 (Mullin – D) 3.9
SD 37 (Walters – R) 4.3 AD 16 (Buchanan – D) 4.0
SD 11 (Leno – D) 4.5 AD 74 (Mansoor – R) 4.1
SD 36 (new – ) 5.0 AD 73 (Harkey – R) 4.2
SD 39 (Block – D) 5.1 AD 24 (Gordon – D) 4.2
SD 07 (DeSaulnier – D) 5.3 AD 19 (Ting – D) 4.4
SD 02 (Evans – D) 5.3 AD 10 (Levine – D) 4.4
SD 15 (Beall – D) 5.4 AD 77 (Maienschein – R) 4.5
SD 10 (Corbett – D) 5.5 AD 17 (Ammiano – D) 4.5
SD 29 (Huff – R) 5.5 AD 68 (Wager – R) 4.5

Highest 10 Unemployment Rates

SD 30 (Mitchell – D) 8.7 AD 53 (Perez – D) 9.1
SD 28 (new – ) 8.7 AD 59 (Jones-Sawyer – D) 9.2
SD 33 (Lara – D) 8.8 AD 36 (Fox – D) 9.7
SD 21 (Knight – R) 8.9 AD 32 (Salas – D) 10.5
SD 35 (Wright – D) 8.9 AD 13 (Eggman – D) 10.6
SD 24 (de Leon – D) 8.9 AD 64 (Hall – D) 10.6
SD 12 (Cannella – R) 9.2 AD 21 (Gray – D) 11.0
SD 05 (Galgiani – D) 9.5 AD 31 (Perea – D) 11.0
SD 40 (Hueso – D) 9.9 AD 26 (Conway – R) 11.2
SD 14 (Vidak – R) 11.7 AD 56 (Perez – D) 15.4

Ratio of Highest to Lowest Rate: Senate 2.90

Ratio of Highest to Lowest Rate: Assembly 3.99

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