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July 21, 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 latest data release from the California Employment Development Department shows the labor market slowdown continuing, according to an analysis released jointly by Beacon Economics and the UCR School of Business Center for Economic Forecasting and Development. The state shed 1,400 jobs in June, the latest numbers available.

In addition, at this point in 2016, California had added 159,900 jobs compared to just 65,400 jobs so far this year. The state’s employers are finding it increasingly difficult to attract candidates to fill skilled positions and high housing costs in many parts of the state are making it increasingly difficult to fill lower-wage positions.

“There are proximate reasons for the slowing of the labor market—retail shedding jobs, slowing tech investment, a movie industry that is taking a breather—but there are always proximate reasons,” said Christopher Thornberg, Founding Partner of Beacon Economics and Director of the UC Riverside School of Business Center for Economic Forecasting and Development. “The ultimate issue is not labor demand—broad measures of the California economy still show robust expansion. The problem is labor supply. The lack of housing has caused the state’s labor supply become anemic over the last few years and now that labor markets are at full employment there simply isn’t the slack left to allow for stronger growth rates.” 

Key Findings:


View the latest seasonally adjusted unemployment rates for:

 United States

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

July 2017 Report





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