California’s unemployment rate edges up, even as hiring increases

SACRAMENTO
March 5, 2010 10:25am

California’s unemployment rate in January was 12.5 percent, up from the 12.3 percent in December and 12.4 percent November 2009, the Employment Development Department says Friday. The U.S. unemployment rate decreased in January to 9.7 percent.

In January 2009, California’s unemployment rate was 9.7 percent. The unemployment rate is derived from a federal survey of 5,500 California households.

Non-farm payroll jobs increased by 32,500 in January, with eight of 11 industry sectors showing gains, according to the data from EDD. But over the course of 12 months, some 701,700 jobs in California were eliminated.

The department did not release county-level data except for Los Angeles County. It says county data will be released on March 10.

Non-farm jobs in California totaled 13,842,100 in January, an increase of 32,500 from the month before, according to a survey of businesses that is larger and less variable statistically, the EDD says. The survey of 42,000 California businesses measures jobs in the economy.

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 January was 15,850,000, a decrease of 18,000 from December, and down 735,000 from the employment total in January of last year.

The number of people unemployed in California was 2,266,000 – up by 32,000 over December, and up by 488,000 compared with January of last year.

Eight categories (mining and logging; construction; manufacturing; trade, transportation and utilities; educational and health services; leisure and hospitality; other services; and government) added jobs over the month, gaining 45,900 jobs.

Construction posted the largest increase over the month, adding 16,200 jobs.

Three categories (information; financial activities; and professional and business services) reported job declines this month, down 13,400 jobs. Information posted the largest decline over the month, down by 12,100 jobs.

In a year-over-year comparison (January 2009 to January 2010), nonfarm payroll employment in California decreased by 701,700 jobs (down 4.8 percent).

One industry division, educational and health services, posted job gains over the year, adding 12,400 jobs (a 0.7 percent increase).

Ten categories (mining and logging; 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 714,100 jobs. Trade, transportation and utilities employment showed the largest decline on a numerical basis, down by 148,900 jobs (a decline of 5.5 percent). Construction posted the largest decline on a percentage basis, down by 18.0 percent (a decrease of 128,700 jobs).

In related data, the EDD says that there were 717,070 people receiving regular unemployment insurance benefits during the January survey week. This compares with 792,764 in December and 717,525 in January 2009.

At the same time, new claims for unemployment insurance were 92,738 in January, compared with 80,873 in December and 75,514 in January of last year.

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