CALIFORNIA LABOR MARKET CLOSES OUT 2023 WITH MODEST GROWTH, BUT EXPECT ADJUSTMENTS WHEN ANNUAL REVISION HITS IN MARCH
State’s Workforce Contracts Again; Unemployment Rate Ticks Up
California’s labor market grew modestly in the latest numbers. Total nonfarm employment in the state expanded by just 23,400 positions in December, however, the sum of California’s metropolitan areas showed a more robust increase of 55,100 positions. November’s gains were revised down to 8,100 in the latest numbers, a 1,200 decrease from the preliminary estimate of 9,300.
“Although job and labor force growth has been muted, we caution against reading too much into these figures because this is the last release before the annual benchmark revisions in March,” said Justin Niakamal, Research Manager at Beacon Economics.
More People Employed
As of December 2023, California had recovered all of the jobs that were lost in March and April 2020, and there are now 508,100 more people employed in California compared to pre-pandemic February 2020. Total nonfarm employment in the state has grown 2.9% since that time compared to a 3.2% increase nationally. California increased payrolls by 1.7% from December 2022 to December 2023, matching the 1.7% increase nationally over the same period.
California’s unemployment rate rose to 5.1% in December 2023, up 0.2 percentage points from the previous month. The state’s unemployment rate remains elevated relative to the 3.7% rate in the United States overall. California is continuing to struggle with its labor supply, which fell by 3,600 in December. Since February 2020, the state’s labor force has fallen by 243,800 workers, a 1.2% decline.
View Seasonally Adjusted Industry Employment Data For California’s Twenty-Eight 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.