The Center for Jobs and the Economy has released our initial analysis of the September Employment Report from the California Employment Development Department. For additional information and data about the California economy visit www.centerforjobs.org/ca.

The September data overall shows slowing in the state economy.  Nonfarm jobs (seasonally adjusted) posted a gain of only 8,700, while August’s gains were nearly erased with a downward revision of 19,000 to only 3,200. 

Employment—the number of people working—dropped for the third month in a row with a loss of 36,290 and coming in at the lowest level since April 2022.  The state’s emphasis on benefits expansion rather than policies to foster stronger employment growth continues to undermine the labor supply required for stronger jobs growth and consequently more lasting solutions to income inequality.

Using the unadjusted series to provide a more detailed look at jobs by industry wage level, the medium wage industries showed the strongest growth, while higher wage industries were in retreat.

Compared to the pre-pandemic peak in February 2020, California’s continued weak employment recovery again posted 7th worst among the states and DC.

California’s September job performance ranked 9th among the states which were led by Texas with a gain of 61,400, New York with 21,700, and Florida at 19,600. Compared to the pre-pandemic peak, California has now gained 436,400 nonfarm jobs, coming in third behind Texas (1,078,100) and Florida (728,800).  Adjusted for size, California again ranked 21st highest, just marginally below the US average.

The statewide nonfarm job numbers were driven in part by weakness in the critical Bay Area results, which posted a loss of 5,200.  The interior regions show the largest net job gains since the pre-pandemic peak, while stronger jobs growth in September continued to push the Los Angeles Region more into positive territory.

Because the data in the table is seasonally adjusted, the numbers should be considered as the total for the counties in each region rather than the regional number.  This job series also is not available for all areas in California.

Unemployment rates (not seasonally adjusted) compared to pre-pandemic February 2020 are shown below.   The Bay Area had the lowest rate in September but still has not matched its pre-pandemic performance.

The same general pattern is also shown in the employment recovery numbers (not seasonally adjusted).  Weakness remaining in the Los Angeles Region continues to hold down the statewide performance, while the interior regions experience stronger results.

In August, California contained 11 of the MSAs among the 25 urban areas with the worst unemployment rates, including the worst region of the country in El Centro MSA (Imperial County).  As the labor force numbers remain weak, Los Angeles-Long Beach-Anaheim MSA returned to this category.  Napa MSA was the highest ranked in California, tied at #171 with 15 other MSAs with an unemployment rate of 3.6%.