California’s jobless rate hits 11.6 percent

SACRAMENTO
July 17, 2009 9:18am

California’s unemployment rate was 11.6 percent in June, and nonfarm payroll jobs declined by 66,500 during the month, according to data released Friday by the California Employment Development Department from two separate surveys.

The U.S. unemployment rate increased in June, rising to 9.5 percent.

In May, the state’s unemployment rate was a revised 11.6 percent, and in June 2008, the unemployment rate was 7.1 percent. The unemployment rate is derived from a federal survey of 5,500 California households.

Unemployment rates increased moderately in the Central Valley in June compared to May, largely due to the cyclical slowdown in farming.

Here are the JUNE 2009 Central Valley unemployment rates, followed by May’s, which are in parentheses. All are estimates:

• Butte County, 13.3 percent; (12.4 percent)

• Fresno County, 15.2 percent; (15.4 percent)

• Kern County, 14.7 percent; (14.2 percent)

• Kings County, 15.3 percent; (14.4 percent)

• Madera County, 13.7 percent; (14.6 percent)

• Merced County, 17.6 percent; (17.3 percent)

• Sacramento County, 11.8 percent; (11.1 percent)

• San Joaquin County, 15.5 percent; (15.0 percent)

• Stanislaus County, 16.6 percent; (16.3 percent)

• Tulare County, 14.7 percent; (14.3 percent)

• Yolo County 11.1 percent; (10.5 percent)

• Yuba County, 18.1 percent; (17.1 percent)

The highest unemployment rate in California last month was 27.5 percent in Imperial County. The lowest was in Marin County at 8.0 percent.

There were 14,285,000 people employed in nonfarm jobs last month, a decrease of 66,500 from the number in May, according to a survey of businesses that is larger and less variable statistically. The survey of 42,000 California businesses measures jobs in the economy. The year-over-year change (June 2008 to June 2009) shows a decrease of 766,300 jobs (down 5.1 percent).

The federal survey of households, done with a smaller sample than the survey of employers, shows a decrease in the number of employed people. It estimates the number of Californians holding jobs in June was 16,348,000, a decrease of 40,000 from May, and down 737,000 from the employment total in June of last year.

The number of people unemployed in California was 2,146,000 – down by 7,000 over the month, but up by 850,000 compared with June of last year.

EDD’s report on payroll employment (wage and salary jobs) in the nonfarm industries of California totaled 14,285,000 in June, a net loss of 66,500 jobs since the May survey. This followed a loss of 61,100 jobs (as revised) in May.

Eleven categories (natural resources and mining; construction; manufacturing; trade, transportation and utilities; information; financial activities; professional and business services; educational and health services; leisure and hospitality; other services; and government) reported job declines this month, down 66,500 jobs. Professional and business services posted the largest decline over the month, down by 13,700 jobs.

In a year-over-year comparison (June 2008 to June 2009), nonfarm payroll employment in California decreased by 766,300 jobs (down 5.1 percent).

One industry division, educational and health services, posted job gains over the year, adding 19,500 jobs (a 1.1 percent increase).

Ten categories (natural resources and mining; construction; manufacturing; trade, transportation and utilities; information; financial activities; professional and business services; leisure and hospitality; other services; and government) posted job declines over the year, down 785,800 jobs. Trade, transportation and utilities employment showed the largest decline on a numerical basis, down by 190,500 jobs (a decline of 6.6 percent). Construction posted the largest decline on a percentage basis, down by 18.6 percent (a decrease of 147,100 jobs).

In related data, the EDD reported that there were 820,387 people receiving regular unemployment insurance benefits during the June survey week. This compares with 839,960 last month and 457,193 last year. At the same time, new claims for unemployment insurance were 86,016 in June 2009, compared with 67,579 in May and 56,359 in June of last year.