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

The numbers for May show continued progress towards recovery to the pre-pandemic peaks, but with the size of employment gains weakening since March and nonfarm job gains weakening since February.  California at 42,900 more nonfarm jobs in May came in second behind Texas (74,200) for the second month in a row.

With the May numbers, California employment was still 264,700 short of the pre-pandemic level in February 2020, while 31 other states were above this recovery metric.  In nonfarm jobs, California was still 193,800 below the pre-pandemic peak, while 14 other states again came in above this level. 

Using the unadjusted numbers to show results by average wage level, the higher wage industries remained in positive territory, while the medium wage industries were just 0.2% short.  Lower wage industries while improving with seasonal hiring underway, still lagged the most.

The slowing pace of California’s steps towards recovery again raises the question of whether the state will be able to return to its prior peaks before the next economic downturn arrives.  In addition to the more macro issues represented by growing inflation, rising energy costs, continued supply disruptions, and the effect on consumption coming from wealth destruction in the stock, bond, and crypto markets, there are also indications that factors unique to the state may be weakening as well.