Web Version [link removed] | Update Preferences [link removed] [link removed] California Employment Report for
February 2020
The Center for Jobs and the Economy has released our initial analysis of the February Employment Report released by the California Employment Development Department. For additional information and data about the California economy visit [[link removed]].
The February numbers reported below are based on surveys done the week of February 12. Consequently, they do not yet incorporate the effects coming from domestic actions especially social distancing measures taken to control the spread of COVID-19.
They do, however, especially in the far slower employment numbers, reflect production, jobs, and sales disruptions beginning in that month largely stemming from comparable shutdowns in China and the resultant disruptions to global supply chains. Additional information on the economic effects coming from the current measures will become more apparent in the March numbers scheduled for release on April 17, with a more complete accounting in the April numbers scheduled for release on May 22.
The weekly Unemployment Insurance initial claims data released on March 26 were the first indicator of the extent of the economic effects. For the week ending March 21, California’s initial claims jumped 129,203 over the prior week to 186,809. California’s reported total was the third highest behind Pennsylvania’s estimated 378,908 and Ohio’s estimated 187,784. Expressed as a percentage of the February labor force, California was 39th highest at a weekly claims rate of 1.0% compared to Rhode Island at 6.3%, Nevada at 6.0%, and Pennsylvania at 5.8%. While reflecting a sharp upward spike in absolute numbers, California’s relatively lower rate indicates that the economic effects are only beginning.
The Center will continue to highlight this information as it becomes available.
This month completes the annual data update process, with revisions now completed for the labor force numbers for 1990-2019 and industry employment, hours, and earnings data for 1990-2019, with the more extensive changes primarily affecting the Rail Transportation and Total Farm numbers. We have also completed the legislative district estimates using that data and the 2018 American Community Survey results. All data is now accessible at the center’s web site.
CA Unemployment Rate Level 3.9% CA Unemployment Rate
EDD reports California's unemployment rate (seasonally adjusted) in February held at the series record low of 3.9%.
Total employment was up only 500 from the revised January numbers, while total unemployment grew by 5,800.
Again, these numbers largely reflect the pre-emergency economic conditions and account primarily for supply chain effects coming from the earlier shutdowns in China.
WARN Act Job Stoppages 18,998 Employees Laid Off
The California and Federal WARN Acts require employers to give a 60-day notice prior to a facility closure or mass layoff. While the Governor has paused the associated penalties for not meeting the requirements, the requirements themselves remain in place.
In March (reporting as of March 25), the number of affected employees jumped to 18,998 compared to an average of 7,051 in the prior 8 months. Only 3,528 employees were affected by permanent closures concentrated primarily at the beginning of the month, with notices in the second half almost solely temporary closures. Leading counties were Los Angeles at 10,047, Orange at 1,412, and San Diego at 1,271.
US Unemployment Rate 3.5% US Unemployment Rate
The revised national numbers show US unemployment rate improved to 3.5%. Employment was up only 45,000 and unemployment down 105,000.
Unemployment by Ethnicity/Race
Unemployment rates by ethnicity/race were unchanged for all groups. 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 29.0 Job Gains
Nonfarm wage and salary jobs rose 29,000 (seasonally adjusted) in February, while jobs nationally grew by 273,000. January's gains were revised to 29,100 from the previously reported 21,400. Biggest gains were in Construction (7,800; $70.1k), Information (6,400; $188.3k), and Professional, Scientific &Technical Services (5,500; $122.5k). Losses were in 5 industries, led by Arts, Entertainment & Recreation (-3,200; $59.4k) Other Services (-3,000; $40.7k), and Manufacturing (-1,600; $95.6k). All salary numbers are the latest 4-quarter average from Quarterly Census of Employment & Wages.
These numbers, however, are from the statistical, seasonally adjusted series. The underlying unadjusted numbers show deeper drops in Transportation & Warehousing and Retail Trade that reflect the disruptions stemming from China.
Counties with Double-Digit Unemployment 6 Counties With Unemployment
Above 10%
Six counties, Colusa, Imperial, Tulare, Plumas, Merced, and Monterey, had an unemployment rate at 10% or above. The number with unemployment rates at or below 5% dipped to 29, with 7 counties at 3% or below. San Mateo had the lowest rate at 2.1%, while Colusa had the highest at 19.9%.
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]
