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California Employment Report
for January 2021
 

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

The January data in general continues to reflect the effects of the state’s stay-at-home orders, with job losses continuing and employment only up slightly.  Job changes by wage level were more mixed, with Retail Trade showing improvements as alternative sales channels continued to replace bricks-and-mortar jobs.   

Overall, the January results show the pace of the recovery in California remained well below the rest of the states, with weakening in the jobs recovery numbers.
 
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The numbers in the chart above also reflect the first stage in EDD’s annual revisions of the job and labor force numbers, with changes to the state labor force numbers beginning in 1990.  The revisions will be completed with release of the county job numbers later this month.

Overall, the revisions show the job and employment losses during the shut-down periods to be more severe than previously estimated.

Employment numbers while tracking closing prior to the shutdowns were revised lower, by 288,200 at the end of the year and by 476,900 at the peak difference in October.
 
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The unemployment numbers, however, show fewer differences, with the numbers converging by the end of the year.
 
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Combined, the labor force numbers show a significantly greater weakening, with the unadjusted labor force participation rate in December from EDD’s numbers at 60.0% rather than the previously estimated 60.5%. 

The nonfarm job numbers show a revision pattern comparable to employment, with the numbers revised down by 205,000 at the end of the year and the peak difference also occurring in December.
 
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CA Unemployment Rate Improves as Labor Force Remains Largely Unchanged
 
9.0%
 
CA Unemployment Rate
 
  

California's reported unemployment rate (seasonally adjusted) in January improved 0.3 point from the revised December number to 9.0%.  

Total reported employment grew 31,800 from the revised December numbers, while total unemployment dropped 68,400.  The labor force was largely unchanged with a dip of 36,500.  These, however, are the statistical rather than the actual results.  Employment in the unadjusted numbers showed a drop of 56,800.
 
 
US Unemployment Rate
 
6.2%
 
US Unemployment
Rate
 
  

The reported national numbers show US unemployment rate (seasonally adjusted) improving 0.1 point to 6.2%, but more likely was up to 0.5 point higher due to the ongoing misclassification issues.  Employment was up 208,000, and unemployment down by 158,000.  The national labor force was essentially level with a gain of only 50,000.
 
 
Nonfarm Jobs Drop 69.9k
 
-69.9k
 
Nonfarm Jobs Change
 
  

Nonfarm wage and salary jobs dropped 69,900 (seasonally adjusted) in January, while the losses in December were revised to 75,400 from the previously reported 52,200.  Nonfarm jobs nationally were up 166,000. California job growth was led by Retail Trade (25,400), Administrative & Support & Waste Services (4,900), and Government (3,600).  Losses were in 10 industries led by Accommodation & Food Services (-59,100), Transportation, Warehousing & Utilities (-13,500), and Arts, Entertainment, & Recreation (-11,600).  The numbers shown in the chart below are the seasonally adjusted numbers.
 
 
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Counties with Double-Digit Unemployment
 
14
 
Counties with Unemployment
Above 10%
 
  

The number of counties with an unemployment rate at 10% or above notched down to 14. The unadjusted rates ranged from 5.4% in Marin to 16.5% in Imperial.
 
 
 
21st
 
Los Angeles-Long Beach-Anaheim MSA Ranking for Worst Unemployment Rate in the Country
 
  

In December, the unemployment rate for the Los Angeles-Long Beach-Anaheim MSA was 9.9%, moving that region into a tie with Madera and Modesto MSAs for 21st place for the worst rate among the 389 MSAs in the US.  El Centro MSA (Imperial County) had the worst unemployment rate in the nation.  Within California, Los Angeles County at 12.7% had the third worst unemployment rate in California in January.
 
 
 
California Center for Jobs
 
 
 
 
 
Contact
1301 I Street
Sacramento, CA 95814
916.553.4093
 
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