August 16, 2024
Beacon Employment Report | California
Presented by Beacon Economics
Copyright © Beacon Economics LLC
CALIFORNIA JOB GROWTH CATCHING UP
Unemployment Rate Unchanged But No Longer Highest In U.S.
21,100
Job Growth�
California’s labor market expansion continued in the latest numbers, with total nonfarm employment in the state growing by a seasonally adjusted 21,100 positions in July. June’s gains were also revised to 20,800 in the latest numbers, a 1,700 decrease from the preliminary estimate of 22,500. California’s labor market remains strong despite slowdowns in the technology and entertainment industries.
Employment growth in the state has trailed the nation in recent years. Since February 2020 (the start of the pandemic), total nonfarm employment in California has grown 2.3% compared to a 4.2% increase nationally. However, the state increased payrolls by 1.6% from July 2023 to July 2024, matching the 1.6% increase nationally over the same period.
5.2%
Unemployment Rate
California’s unemployment rate held steady at 5.2% in July, unchanged from the previous month, but no longer the highest in the nation. California’s unemployment rate has increased over the last year, notably for younger workers, but initial claims for unemployment insurance have oddly remained stable over this period.
“There’s some good news for California in these numbers; the state has overtaken Texas in terms of the number of jobs added over the last year and no longer has the highest unemployment rate in the country,” said Justin Niakamal, Manager of Regional Research at Beacon Economics. “The bad news is that the Bay Area, and San Francisco in particular, continues to underperform inland parts of the state.”
15,100
Labor Force Growth
California continues to struggle with its labor supply. Although the state’s labor force grew by 15,100 in the latest numbers, since February 2020, it has fallen by -230,700 workers, a -1.2% decline. This is being driven largely by California’s housing shortage and by the retirement of aging workers. In addition, the household survey has diverged from the payroll survey in recent years. Total nonfarm is up 1.9% over the last two years according to the payroll survey, while the household survey shows household employment down 0.3% over the same period.�
View Seasonally Adjusted Industry Employment Data For California’s 28 MSA’s/MD’s:
The Beacon Employment Report | California is a unique analysis of California’s employment numbers and trends. Each month, we link our 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, which are critical to revealing accurate trends and insights within data. The analysis is a sample of the kind of research available from Beacon Economics.
The contents of this report are based on information derived from carefully selected sources Beacon Economics believe are reasonable. We do not guarantee its accuracy or completeness and nothing presented here shall be construed to be a representation of such a guarantee.
More
Information
For information about Beacon’s practice areas, please contact:
Business Development Teamat [email protected]
or 424-666-2165