Web Version [link removed] | Update Preferences [link removed] [link removed] California Employment Report for
January 2020
The Center for Jobs and the Economy has released our initial analysis of the January Employment Report released by the California Employment Development Department. For additional information and data about the California economy visit [[link removed]].
This month continues the annual data update process, with revisions to the labor force data for all areas for 2019 and for California and Los Angeles County from 1990-2019. The industry employment, hours, and earnings data also has been revised for 1990-2019, with the more extensive changes primarily affecting the Rail Transportation and Total Farm numbers. The final updates will be the labor force numbers for the other counties later this month, along with our updates to the legislative district estimates using that data and the 2018 American Community Survey results. Comparisons between the different geographic levels consequently should take the ongoing revision schedule into account.
Last Jobs Update To Reflect Numbers Pre-COVID-19 Economic Impact
The most recent numbers also reflect the state of the California economy prior to the recent COVID-19 emergency situation. The extent of the economic effects are as yet unknown and will depend on the duration and severity of the outbreak, economic effects from the individual, employer, and government measures now being taken to limit new infections through social distancing, consumer reactions, and the actions now being taken by employers and the state and federal governments to minimize job and income impacts. Although some effects likely will be reflected in the February results, especially supply chain and trade effects stemming from conditions in China, the overall effects will begin to be seen in the March numbers that will be released in April.
The range of potential economic scenarios on the national level along with strategies for employers has been prepared by McKinsey & Company [[link removed]]. Wells Fargo has also just released their revised national forecast [[link removed]] expecting a small decline in the second quarter, but with quick recovery and resumed growth in the second half. UCLA Anderson Forecast [[link removed]] expects both the US and California to be weaker than previously expected particularly in the third quarter, but still positive and with recovery beginning in the fourth quarter.
The Center will continue to highlight this information as it becomes available.
CA Unemployment Rate Level 3.9% CA Unemployment Rate
EDD reports California's unemployment rate (seasonally adjusted) in January held at the series record low of 3.9%.
Total employment was up 27,500 from the revised December numbers, while total unemployment dropped by 1,400.
US Unemployment Rate 3.6% US Unemployment Rate
The revised national numbers show US unemployment rate notched up to 3.6%. Employment was down 89,000 and unemployment up 139,000.
Unemployment by Ethnicity/Race
Unemployment rates by ethnicity/race improved for Latinos and African-Americans. The data source for these rates differs from the reported numbers, with EDD estimating the demographic rates as a 12-month moving average from the core Current Population Survey data. Labor force participation rates held steady for all groups.
Nonfarm Jobs Up 21.4k Job Gains
Nonfarm wage and salary jobs rose 21,400 (seasonally adjusted) in January, while jobs nationally grew by 266,000. December's gains were revised to 26,300 from the previously reported 24,000. Biggest gains were in Health Care & Social Assistance (6,800; $51.8k), Arts, Entertainment & Recreation (6,700; $59.4k), and Information (5,500; $188.3k). Losses were in 6 industries, led by Retail Trade (-2,600; $36.7k), Construction (-2,400; $70.1k); and Professional, Scientific &Technical Services (-2,300; $122.5k). All salary numbers are the latest 4-quarter average from Quarterly Census of Employment & Wages.
Counties with Double-Digit Unemployment 4 Counties With Unemployment
Above 10%
Four counties, Colusa, Imperial, Plumas, and Tulare, had an unemployment rate at 10% or above. The number with unemployment rates at or below 5% declined to 30, with 6 counties at 3% or below. San Mateo had the lowest rate at 2.1%, while Colusa had the highest at 19.2%.
California Center for Jobs [[link removed]] The California Center for Jobs and the Economy provides an objective and definitive source of information pertaining to job creation and economic trends in California. [[link removed]] Contact 1301 I Street Sacramento, CA 95814 916.553.4093 If you no longer wish to receive these emails, select here to unsubscribe. [link removed]
