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

While the August job numbers were generally positive, they again remained at levels keeping California’s recovery behind much of the rest of the country.  The employment numbers, however, remained less positive, again reflecting the significantly higher share of workers in the state who have yet to return to a job.

As indicated in the chart, the number of jobs closed due to government actions during the pandemic were only slightly deeper in the state compared to the rest of the nation.  Employment losses—the workers—were more severe in part to the additional losses coming from elimination of self-employment alternatives under AB 5.  The pace of recovery, however, in both cases was significantly slower in part due to uncertainty in many of the state and local actions, and the renewed state closures towards the end of 2020.   California’s job results consequently have improved since the beginning of the year as the state restrictions under the county tier system were first relaxed and then removed in June, but much of this performance instead reflects California “catching up” to the recovery provisions in other states instead allowed to occur during much of 2020.  Year to date, California has seen a rise of 694,200 jobs, 14.9% of the US total or somewhat better than the pre-pandemic 11.9% of total nonfarm jobs. 

Viewed by state, California ranks 11th in its current recovery level compared to the pre-pandemic job level, while two states have moved into a growth phase.

Measured by employment, 9 states have moved to growth while California ranks the 10th lowest.

Most parts of the state’s economy remain in the recovery stage.  Transportation & Warehousing, Utilities, Professional, Scientific & Technical Services and state-supported jobs in Social Assistance have moved to the growth stage.  The bulk of the state’s industries still face a prolonged period of regaining lost ground, and some—as reflected the most current Department of Finance projections—are likely to never recover to prior levels as the result of work, sales channel, and technology changes accelerated by the pandemic shutdowns.