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Jobs Data: SoCal remains on-track with continued job gains

By July 17, 2015 No Comments

June 2015 California and Southern California
Summary of Labor Markets

LAEDC KYSER CENTER FOR ECONOMIC RESEARCH

“Halfway through 2015, Southern California remains on track with continued job gains and sustained decreases in jobless rates that have been a part of the economic picture for more than two years,” said Robert Kleinhenz, Chief Economist with the LAEDC. “Both the state and the Southern California region continue to outpace the nation in terms of yearly employment gains.”

California Summary (Seasonally Adjusted Numbers)

Current Month: June 2015

Indicator Yr Ago Month Ago Current Month MTM+ YTY+
Unemployment Rate in % 7.5 6.4 6.3 -0.1% -1.2%
Nonfarm Jobs 15,607,200 16,046,100 16,069,000

+22,900 or

+0.1%

+461,800 or +3.0

+ MTM = month-to-month, YTY = year-to-year

  • The unemployment rate edged down from 6.4% a month ago to 6.3% in June 2015 and fell 1.2% from 7.5% a year earlier. The average since 2000 is 7.6% and was as low as 4.9% for much of 2006, prior to the Great Recession.
  • California’s unemployment rate is just 1.0% above the national rate of 5.3%, which is less than the long run gap of 1.5%.
  • Over the month, civilian employment increased by 35,000 while the labor force grew by 16,400, contributing to the month-to-month decrease in the unemployment rate.
  • The June monthly increase in the labor force was more typical of the recent trend, and followed a large (71,800) increase in May that was the largest since 1990.
  • Over the year, the increase in total employment (482,400) exceeded growth in the labor force (265,300), contributing to the decline in the unemployment rate compared to last year.

Nonfarm (wage and salary) jobs in California stood at 16.1 million jobs, up 22,900 month to month (0.1%) and by 461,800 or 3.0% YTY.

  • Most segments of the economy added jobs on a year-to-year basis, led by:
    • Professional, Scientific and Technical Services (77,000 jobs or 6.5%)
    • Health Care and Social Assistance (56,900 jobs or +2.8%)
    • Leisure and Hospitality (54,700 jobs or 3.1%)
  • All major industries except for Mining and Logging and Nondurable Goods Manufacturing added jobs year-to year.
  • The following major industries experienced the largest yearly percentage gains:
    • Construction at 7.0% (+47,000 jobs)
    • Professional, Scientific, and Technical Services at 6.5%
    • Education Services at 6.5%.

Los Angeles County (Seasonally Adjusted Numbers)

  • This Month: 4%
  • Last Month: 6%
  • Same Month Year Ago: 2%

For June 2015, the Los Angeles labor market continued to improve on a year-to-year basis with the seasonally adjusted unemployment rate declining 0.8 percentage points from 8.2% a year earlier to 7.4%. The unemployment rate stood at 7.6% last month. Average since January 2000 is 8.0%.

Los Angeles County (Not Seasonally Adjusted Numbers*)

The Los Angeles labor market continued to improve on a year-to-year basis.

  • The unemployment rate fell from 8.2% a year earlier to 7.3%, and was down from 7.4% in May.
  • The county added 106,500 wage and salary jobs from June 2014 to June 2015, a 2.5% increase. Over the first half of this year, wage and salary job gains in Los Angeles County have been approximately on par with last year, increasing by an average of 2.5% this year compared to a 2.6% increase over the first half of last year.
  • Job gains occurred in most major industries, led by
    • Health care and social assistance (22,100, +3.6%)
    • Leisure and hospitality (18,200, +3.9%)
    • Government (10,000, +1.8%), mainly at the local level (+8,200)
  • The largest year-to-year percentage increases occurred in:
    • Educational Services (6.9%)
    • Construction (6.3%)
    • Wholesale Trade (4.1%)
  • Job losses occurred in Finance and Insurance, Manufacturing, and Mining and Logging.
  • In the Goods Movement Sector, Transportation and Warehousing employment rose by 2,800 jobs and Wholesale Trade added 9,600 jobs year-to-year, for a combined increase of 12,400 jobs (+3.3%).
  • Employment services rose by 7,200 jobs over the year representing 73% of the YTY increase in employment in the major industry, Administrative, Waste, and Support Services.
  • Entertainment Industry Employment:
    • Employment in the Motion Picture & Sound Recording industry was 114,500 in June, increasing by 1,200 jobs (1.1%) from employment of 113,300 in June of last year.
    • In monthly terms, Motion Picture and Sound Recording fell by 2,200 jobs.
  • Employment in the industry follows a seasonal pattern, with a sharp drop in January followed by a rebound over the next two months to a peak in March, then leveling off or pulling back over the following months and surging to another peak late in the year.
    • By comparison, at the national level this industry added jobs year-to-year, going from 378,700 in June 2014 to 386,300 in June 2015, a 2.0% increase.
    • Motion Picture and Sound Recording jobs in LA County account for 30% of the nation’s jobs in this industry, about the same as in recent years.
    • The Broadcasting industry gained 900 jobs (+4.4%).

 

Southern California Counties (Not Seasonally Adjusted Numbers*)

Current Month: June 2015

County/
Metro Area
Last Yr
U-Rate %
Last Month
U-Rate %
Current Month
U-Rate %
Change in Nonfarm Jobs
Orange County 5.5 4.2 4.3 +45,500 or +3.0%
Inland Empire 8.2 6.4 6.5 +47,300 or +3.7%
Ventura County 6.4 5.2 5.3 +3,500 or +1.2%

*NOTE: Detailed numbers at the county level are not seasonally adjusted. This may give rise to large swings from one month to the next. For that reason, this report generally emphasizes year-to-year changes over month-to-month changes, except where the monthly changes are noteworthy.

Orange County:

  • Leaders:
    • Health Care and Social Assistance (7,800 jobs or +4.8%)
    • Construction (6,300 or 7.7%)
    • Manufacturing (5,800 jobs or +3.7%)
  • Job Losses: Information lost 200 jobs and government shed 700 jobs
  • Other: Other services (4,700 jobs year-year or 9.9%) and education services (4,100 jobs or 16.8%)

 

 

Riverside/San Bernardino:

  • Leaders:
    • Leisure & Hospitality (7,700 or +5.4%)
    • Transportation, Warehousing and Utilities (6,600 jobs, +7.7%)
    • Construction (5,900 jobs, +7.6%)
  • Employment services accounted for 66% of the gains in Administrative, Support, and Waste Services.
  • Other: Manufacturing (+3,100 jobs) and Health Care and Social Assistance (+2,800 jobs).
  • Goods movement continued its impressive streak of growth, with a gain of 10,200 jobs (+6,700 in Transportation/Warehousing and +3,500 in Wholesale Trade), a 7.4% year-to-year gain. Goods movement employment was up by 9.0% through the first six months of 2015 compared with the same period last year.
  • Job Losses: Mining and Logging (-100 jobs or -7.7%) and Information (-200 jobs or -1.8%).

 

Ventura County:

  • Leaders:
    • Professional, Scientific & Technical Services (1,200 jobs or +7.5%)
    • Retail Trade (900 jobs or 2.3%)
    • Government (900 jobs or +2.0%).
  • Job Losses: Mining and Logging, Manufacturing, Educational & Health Services, Finance & Insurance

 

 

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