02/08/2023

Reports » Job Reports

September 2017 Job Report

 Highlights for policy makers:

 

Unemployment Rate Level at 5.1%; Total Employment Gains 112,700

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

Seasonally Adjusted California US
Sep 2017 Change from Aug 2017 Sep 2017 Change from Aug 2017
Unemployment Rate 5.1% 0.0 4.2% -0.2
Labor Force 19,295,227 0.7% 161,146,000 0.4%
Participation Rate 62.3% 0.4 63.1% 0.2
Employment 18,309,064 0.6% 154,345,000 0.6%
Unemployment 986,163 1.4% 6,801,000 -4.6%
Source: California Employment Development Department; US Bureau of Labor Statistics

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

Not Seasonally Adjusted California US
Sep 2017 Change from Sep 2016 Sep 2017 Change from Sep 2016
Unemployment Rate 4.7% -0.5 4.1% -0.7
Labor Force 19,450,352 1.4% 161,049,000 0.9%
Participation Rate 62.8% 0.4 63.0% 0.2
Employment 18,533,056 1.9% 154,494,000 1.7%
Unemployment 917,296 -8.7% 6,556,000 -14.4%
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 112,700 from August, while the number of unemployed rose by 13,200. The labor force rose by 125,900.

California’s seasonally adjusted unemployment rate remained level at 5.1%. California tied with Louisiana and West Virginia for the 7th highest unemployment rate among the states. The unadjusted rate dropped from 5.2% in September 2016 to 4.7%.

Total US employment saw a seasonally adjusted rise of 906,000 from August, while the number of unemployed dropped by 331,000. The national unemployment rate was down 0.2 point to 4.2%. The national labor force numbers grew by 575,000.

Labor Force Participation Rate Matches Lowest Level from 1976

California’s participation rate (seasonally adjusted) in September rose to 62.3%, while the US rate grew to 63.1%.

The seasonally adjusted California participation rate in September returned to the previous low seen in 1976.

State Employment Growth Rankings—California Rose to 3rd Place

Change in Employment, September 2016 – September 2017
Rank Number of Employed Percentage Change Population Adjusted
(employment growth per 1,000 civilian
noninstitutional population)
1 FL 340,000 CO 4.5% CO 29.0
2 TX 186,600 OR 3.9% OR 23.3
3 CA 182,700 FL 3.6% UT 22.3
4 GA 164,300 GA 3.5% GA 20.8
5 NY 156,300 AR 3.4% FL 20.4
6 CO 125,700 UT 3.4% WA 20.0
7 WA 114,800 WA 3.3% MD 18.8
8 VA 103,500 MD 2.9% AR 18.8
9 MD 88,900 TN 2.8% MN 17.6
10 NC 88,600 KY 2.6% TN 16.3
11 TN 85,200 MN 2.6% VA 15.8
12 OR 76,900 VA 2.5% KY 14.6
13 MN 76,100 AZ 2.5% AZ 14.1
14 AZ 75,900 WI 2.1% WI 13.8
15 WI 63,100 NV 1.9% NV 11.3
16 MA 59,800 NC 1.9% DC 11.2
17 KY 50,400 ME 1.8% NC 11.2
18 UT 49,400 SC 1.8% ME 11.0
19 AR 43,400 MA 1.7% MA 10.8
20 OH 39,900 NY 1.7% ID 10.3
21 MI 39,300 DC 1.7% SC 10.1
22 SC 39,200 ID 1.7% RI 10.0
23 IN 36,100 RI 1.6% NY 9.9
24 CT 26,500 CT 1.5% CT 9.2
25 NV 26,100 TX 1.5% TX 8.9
26 AL 22,800 IN 1.1% IN 7.0
27 NJ 20,600 AL 1.1% ND 6.4
28 KS 13,800 CA 1.0% KS 6.2
29 ID 13,200 DE 1.0% AL 6.0
30 OK 12,600 KS 1.0% CA 5.9
31 ME 12,000 ND 0.9% DE 5.9
32 RI 8,600 MI 0.9% MI 5.0
33 PA 8,200 NM 0.8% NM 4.4
34 NM 7,100 OH 0.7% OH 4.4
35 DC 6,300 OK 0.7% OK 4.2
36 DE 4,500 HI 0.6% HI 3.4
37 NE 4,500 AK 0.5% AK 3.3
38 MS 3,900 WV 0.5% SD 3.2
39 WV 3,800 NJ 0.5% NJ 2.9
40 HI 3,700 SD 0.5% WV 2.6
US 906,000  US 0.6%  US 3.5
Source: US Bureau of Labor Statistics, Seasonally Adjusted

Between September 2016 and September 2017, Bureau of Labor Statistics (BLS) data shows the total number of employed in California increased by 182,700 (seasonally adjusted), or 20.2% of the total net employment gains in this period for the US. California rose to 3rd place behind Florida (which has a civilian working age population only 55% as large as California’s) at 340,000 and Texas (69% as large) at 186,600. Measured by percentage change in employment over the year, California improved to 28th highest. Adjusted for working age population, California rose to 30th.

Nonfarm Jobs Up 52,200

EDD reported that between August and September 2017, seasonally adjusted nonfarm wage and salary jobs grew 52,200. August’s losses were revised to 7,700 from the previous drop of 8,200. As usual, September’s numbers were heavily influenced by the return to schools. Looking at the underlying unadjusted numbers, State & Local Government Education and Educational Services combined saw an increase of 115,300, a typical but higher compared to years prior to 2016, seasonal effect related to the school year.

In the not seasonally adjusted nonfarm numbers overall, hiring saw increases in all but 5 industries over the year. The change in total payroll jobs from September 2016 saw the largest increases in Government (46,700), Construction (44,500), and Social Assistance (38,700). Declines were in Manufacturing (-6,200), Accommodation Services (-1,200), and Mining & Logging (-900).

Not Seasonally Adjusted Payroll Jobs Sep 2017 Aug 2017 Change Sep 2017 – Aug 2017 Change Sep 2017 – Sep 2016
Total Farm 482,300 482,100 200 4,400
Mining and Logging 23,500 23,600 -100 -900
Construction 840,600 842,900 -2,300 44,500
Manufacturing 1,312,600 1,318,800 -6,200 -6,200
Wholesale Trade 739,800 737,500 2,300 14,300
Retail Trade 1,675,100 1,677,400 -2,300 5,900
Utilities 58,400 58,300 100 -100
Transportation & Warehousing 542,500 536,900 5,600 5,400
Information 534,200 534,800 -600 11,200
Finance & Insurance 549,400 550,900 -1,500 4,100
Real Estate & Rental & Leasing 282,100 285,000 -2,900 1,600
Professional, Scientific & Technical Services 1,223,600 1,228,800 -5,200 1,000
Management of Companies & Enterprises 230,000 230,400 -400 3,900
Administrative & Support & Waste Services 1,107,900 1,102,400 5,500 -200
Educational Services 361,200 342,800 18,400 14,500
Health Care 1,487,400 1,486,400 1,000 17,400
Social Assistance 766,600 759,100 7,500 38,700
Arts, Entertainment & Recreation 308,300 319,100 -10,800 5,100
Accommodation 223,300 229,900 -6,600 -1,200
Food Services 1,420,000 1,426,600 -6,600 31,600
Other Services 582,600 577,700 4,900 20,600
Government 2,538,000 2,452,300 85,700 46,700
Total Nonfarm 16,807,100 16,721,600 85,500 257,900
Total Wage and Salary 17,289,400 17,203,700 85,700 262,300
Source: California Employment Development Department

At 52,200, California showed the highest increase in seasonally adjusted nonfarm jobs among the states from September 2016 to September 2017, as job levels at the national level in particular for states along the Gulf Coast were affected by severe weather. By percentage growth in jobs, California rose to 8th highest at 0.3%. By population adjusted jobs growth, California rose to 9th highest.

Change in Nonfarm Jobs (seasonally adjusted), September 2016 – September 2017
Rank Number of Jobs Employment Growth (%) Population Adjusted
(job growth per 1,000 civilian
noninstitutional population)
1 CA 52,200 NE 0.5% NE 3.7
2 WA 13,800 HI 0.5% HI 2.8
3 IN 11,400 WA 0.4% WA 2.4
4 AZ 10,900 AZ 0.4% KS 2.3
5 OH 10,500 IN 0.4% IN 2.2
6 PA 10,300 KS 0.4% VT 2.1
7 MI 9,900 VT 0.3% AZ 2.0
8 MA 9,300 CA 0.3% WI 1.9
9 WI 8,600 WI 0.3% CA 1.7
10 MN 6,400 MA 0.3% MA 1.7
11 NE 5,400 SD 0.3% SD 1.7
12 KS 5,000 UT 0.2% UT 1.5
13 CO 4,000 MI 0.2% MN 1.5
14 AL 3,800 MN 0.2% MI 1.3
15 UT 3,400 AL 0.2% OH 1.1
16 HI 3,100 OH 0.2% PA 1.0
17 KY 3,100 PA 0.2% AL 1.0
18 NC 2,500 KY 0.2% CO 0.9
19 MD 2,400 CO 0.2% KY 0.9
20 MS 1,400 MS 0.1% MS 0.6
21 VT 1,100 WV 0.1% WV 0.6
22 SD 1,100 AR 0.1% MD 0.5
23 AR 1,100 MD 0.1% AR 0.5
24 WV 900 ID 0.1% ID 0.5
25 TN 800 NC 0.1% NC 0.3
26 ID 600 TN 0.0% TN 0.2
27 NV 200 DE 0.0% DE 0.1
28 DE 100 NV 0.0% NV 0.1
29 MT -100 GA 0.0% GA -0.1
30 GA -500 MT 0.0% MT -0.1
31 ME -700 TX -0.1% TX -0.3
32 ND -900 ME -0.1% ME -0.6
33 NM -1,100 CT -0.1% NM -0.7
US -33,000 US 0.0% US -0.1
Source: US Bureau of Labor Statistics

Six 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 September 2017 (not seasonally adjusted), 6 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.

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 3.4% in the Bay Area to more than twice as large at 7.6% in the Central Valley.

Not Seasonally Adjusted Unemployment Rate (%) September 2017
California 4.7
Bay Area 3.4
Orange County 3.6
Central Coast 4.5
Sacramento Region 4.5
Central Sierra 4.6
Los Angeles 4.8
San Diego/Imperial 4.9
Inland Empire 5.4
Upstate California 5.4
Central Valley 7.6

By Legislative District:

Lowest 10 Unemployment Rates
CD18 (Eshoo-D) 2.6 SD13 (Hill-D) 2.6 AD16 (Baker-R) 2.4
CD12 (Pelosi-D) 2.8 SD11 (Wiener-D) 3.0 AD22 (Mullin-D) 2.5
CD52 (Peters-D) 2.9 SD39 (Atkins-D) 3.2 AD24 (Berman-D) 2.7
CD45 (Walters-R) 3.0 SD37 (Moorlach-R) 3.2 AD28 (Low-D) 2.7
CD14 (Speier-D) 3.0 SD36 (Bates-R) 3.3 AD77 (Maienschein-R) 2.9
CD17 (Khanna-D) 3.1 SD07 (Glazer-D) 3.5 AD17 (Chiu-D) 2.9
CD49 (Issa-R) 3.3 SD15 (Beall-D) 3.5 AD19 (Ting-D) 3.0
CD15 (Swalwell-D) 3.3 SD10 (Wieckowski-D) 3.5 AD78 (Gloria-D) 3.1
CD02 (Huffman-D) 3.3 SD02 (McGuire-D) 3.5 AD73 (Brough-R) 3.1
CD33 (Lieu-D) 3.5 SD26 (Allen-D) 3.6 AD25 (Chu-D) 3.1
Highest 10 Unemployment Rates
CD36 (Ruiz-D) 6.1 SD24 (de León-D) 5.6 AD36 (Lackey-R) 6.4
CD41 (Takano-D) 6.1 SD21 (Wilk-R) 5.6 AD34 (Fong-R) 6.4
CD09 (McNerney-D) 6.2 SD30 (Mitchell-D) 5.7 AD23 (Patterson-R) 6.6
CD10 (Denham-R) 6.2 SD35 (Bradford-D) 5.9 AD64 (Gipson-D) 6.9
CD44 (Barragán-D) 6.7 SD08 (Berryhill-R) 6.2 AD13 (Eggman-D) 7.1
CD23 (McCarthy-R) 7.1 SD05 (Galgiani-D) 6.4 AD21 (Gray-D) 7.8
CD22 (Nunes-R) 7.4 SD12 (Cannella-R) 6.6 AD31 (Arambula-D) 8.7
CD16 (Costa-D) 8.1 SD16 (Fuller-R) 6.9 AD26 (Mathis-R) 9.3
CD21 (Valadao-R) 9.3 SD40 (Hueso-D) 8.8 AD32 (Salas-D) 9.7
CD51 (Vargas-D) 10.4 SD14 (Vidak-R) 10.2 AD56 (Garcia-D) 12.3

Bay Area Provided 40% of Net Employment Growth Since Recession

Containing just under 20% of the state’s population, the Bay Area was responsible for 39.8% of the net growth in employment since the pre-recession peaks in 2007. Los Angeles Region provided the next largest share at 21.7%, but spread over 29.2% of the population. Inland Empire is the only other region continuing to show employment gains above their population share.

Eight 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.

US Rank MSA August 2017 Unemployment Rate
369 Weirton-Steubenville, WV-OH Metropolitan Statistical Area 6.7
370 Cleveland-Elyria, OH Metropolitan Statistical Area 6.8
370 Las Cruces, NM Metropolitan Statistical Area 6.8
372 Danville, IL Metropolitan Statistical Area 6.9
373 Vineland-Bridgeton, NJ Metropolitan Statistical Area 7.1
374 Beaumont-Port Arthur, TX Metropolitan Statistical Area 7.2
375 Brownsville-Harlingen, TX Metropolitan Statistical Area 7.3
376 Modesto, CA Metropolitan Statistical Area 7.5
376 Stockton-Lodi, CA Metropolitan Statistical Area 7.5
378 Farmington, NM Metropolitan Statistical Area 7.7
378 Yuba City, CA Metropolitan Statistical Area 7.7
380 Madera, CA Metropolitan Statistical Area 7.8
381 McAllen-Edinburg-Mission, TX Metropolitan Statistical Area 8.0
382 Hanford-Corcoran, CA Metropolitan Statistical Area 8.5
383 Fresno, CA Metropolitan Statistical Area 8.6
384 Merced, CA Metropolitan Statistical Area 9.1
385 Bakersfield, CA Metropolitan Statistical Area 9.4
386 Visalia-Porterville, CA Metropolitan Statistical Area 10.6
387 Yuma, AZ Metropolitan Statistical Area 23.7
388 El Centro, CA Metropolitan Statistical Area 24.9

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