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June 16, 2017

Welcome to the Beacon Employment Report, a unique analysis of California's employment numbers and trends. Each month, Beacon Economics links its own econometric predictions to data released by the U.S. Bureau of Labor Statistics and the California Employment Development Department to identify important changes in employment across industries and regions. The Beacon Employment Report is also one of the few analyses that uses seasonally adjusted numbers. Click here to learn more about why seasonal adjustment is so critical in revealing accurate trends and insights within data. The analysis is a sample of the kind of research available from Beacon Economics.

Note About the Inland Empire: All employment and other data regarding the Inland Empire region of California (Riverside and San Bernardino Counties) is now housed at the UC Riverside School of Business Center for Economic Forecasting and Development. This includes a monthly employment report specifically focused on the region. Beacon Economics' researchers and other staff hold their same positions at the Center and are responsible for all analysis and products.

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The Beacon Employment Report represents only a sample of the custom, comprehensive forecasts and economic analysis available from Beacon Economics. Learn More

SKILLS MISMATCH AND HIGH HOUSING COSTS DRIVING JOBS SLOWDOWN

California’s job growth has continued to slow this month, according to an analysis released jointly by Beacon Economics and the UCR School of Business Center for Economic Forecasting and Development. Although the latest numbers from the California EDD indicate that the state added 17,600 jobs in May, recouping the revised decline of 17,600 positions in April, year-over-year gains (+1.5% this month), remain near multi-year lows and slightly below growth at the national level (+1.6%).

The driving force behind the slowdown in the state is twofold. First, the state’s employers are finding it increasingly difficult to find candidates to fill skilled positions, and second, because of high housing costs, employers are finding it increasingly difficult to fill lower-paying jobs.

“For the second month in a row California’s yearly growth rate dipped below the nation’s,” said Robert Kleinhenz, Executive Director of Research at Beacon Economics and the Center for Forecasting. “While job growth nationally has also slowed, our concern is that California’s job growth will be constrained because we are at full employment, we have insufficient numbers of qualified workers for certain positions, and rising housing costs are increasingly challenging for lower and middle income households.” 

The state’s unemployment rate fell to 4.7% in May, a 0.1 percentage point decline from April. However, this drop was mainly due to a decline in the state’s labor force (-23,000) during the month, while household employment only grew by 3,600 during the month.

Key Findings:

 

View the latest seasonally adjusted unemployment rates for:


 United States
 California
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View seasonally adjusted industry employment data for California's
28 MSAs and MDs


June 2017 Report

 

 

 

 

Beacon Economics is a leading provider of economic and data analysis. Our research informs the financial and economic strategies of major hedge funds, industry, cities and counties, government agencies, and nonprofit organizations.

For more information, please view our research and analytics page or contact:

Director of Business Development Rick Smith at 858-997-1834 or Rick@BeaconEcon.com, or

Managing Partner Sherif Hanna at 310-571-3399 or Sherif@BeaconEcon.com.

 
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