California Employment Gains Pick Up in the Latest Numbers

Hollywood Strike Effects: Job Sector That Houses Motion Picture and Sound Recording Sees Largest Decline

California’s labor market grew modestly in the latest numbers, with total nonfarm employment in the state expanding by 23,100 positions in August, according to an analysis released today by Beacon Economics. July’s gains were revised down to 8,900, a 19,000 decrease from the preliminary estimate of 27,900.

“It was a bit of mixed bag during August, with the largest regions in California both gaining and shedding jobs,” said Taner Osman, Research Manager at Beacon Economics. “However, following a couple of slower months, employment gains did pick up, which sets the state up nicely as we enter a seasonally strong part of the year.”

As of August 2023, California has recovered all of the jobs that were lost in March and April 2020 due to the pandemic. There are now 447,600 more people employed in the state compared to February 2020. Total nonfarm employment has grown 2.5% since that time compared to a 2.7% increase nationally. From August 2022 to August 2023, California increased payrolls by 1.9%, trailing the 2.0% increase nationally over the same period.

The state’s unemployment rate remained unchanged at 4.6% in August 2023. California’s unemployment rate is elevated relative to the 3.8% rate in the United States overall. The state is continuing to struggle with its labor supply, which fell by 18,000 in August, a decrease of 0.1% on a month-over-month basis. Since February 2020, the state’s labor force has fallen by 197,500 workers, a 1.0% decline.

Industry Profile  

• At the industry level, job gains were mixed. The Health Care sector led the way with payrolls expanding by 11,400, an increase of 0.4% on a month-over-month basis. With these gains Health Care payrolls are now 9.0% above their pre-pandemic peak.
• Government was the next best performing sector, adding 5,200 jobs, a month-over-month increase of 0.2%. With these gains, Government payrolls are now just 1.2%, or 32,500 jobs, below their pre-pandemic peak.
• Other sectors posting strong gains during the month were Construction (4,700 or 0.5%), Administrative Support (3,800 or 0.3%), Other Services (3,800 or 0.6%), Leisure and Hospitality (2,800 or 0.1%), Education (2,600 or 0.6%), Transportation, Warehousing, and Utilities (1,400 or 0.2%), and Manufacturing (1,300 or 0.1%).
• Payrolls decreased in only a handful of sectors in August. Information saw the largest declines with payrolls falling by 9,000, a drop of 1.5% on a month-over-month basis. This decline was driven by the ongoing strikes in Motion Picture and Sound Recording, which has shed 15,200 positions over the last year, a 9.0% decline. Other sectors posting declines during the month were Professional, Scientific, and Technical Services
  (-3,800 or -0.3%), Wholesale Trade (-1,100 or -0.2%), and Finance and Insurance (-800 or -0.1%).

Regional Profile

• Regionally, job gains were led by the San Francisco Bay Area. The East Bay experienced the largest increase, with payrolls expanding by 2,700 (0.2%) positions in August. Santa Rosa (700 or 0.3%), San Rafael (MD) (200 or 0.2%), Vallejo (200 or 0.1%), and Napa (100 or 0.1%) also saw payrolls expand during the month. On the other hand, San Francisco (MD) (-1,200 or -0.1%) and San Jose (-500) experienced payroll declines. Over the past 12 months, the East Bay (2.5%) and Napa (2.5%) saw the fastest job growth in the region, followed by San Francisco (MD) (2.4%), San Rafael (MD) (2.3%), Santa Rosa (2.2%), San Jose (2.0%), and Vallejo (1.8%).
• In Southern California, Orange County saw the largest increase, where payrolls grew by 7,100 (0.4%) during the month. San Diego (2,800 or 0.2%) and the Inland Empire (2,400 or 0.1%), also saw their payrolls jump. On the other hand, Los Angeles (MD) (-10,300 or -0.2%) and Ventura (-200 or -0.1%) experienced payroll declines during the month. Over the past year, San Diego (2.0%), Orange County (2.0%), and Los Angeles (MD) (2.0%) have enjoyed the fastest job growth in the region, followed by Ventura (1.6%), El Centro (1.2%), and the Inland Empire (0.6%).
• In the Central Valley, Sacramento experienced the largest monthly increase as payrolls expanded by 2,700 (0.2%) positions in August. Payrolls in Fresno (1,100 or 0.3%), Stockton (800 or 0.3%), Hanford (400 or 0.9%), Redding (300 or 0.4%), Chico (200 or 0.3%), and Yuba (200 or 0.4%) also saw their payrolls jump. On the other hand, Bakersfield (-2,100 or -0.7%), Visalia (-900 or -0.6%), Merced (-500 or -0.7%), and Modesto (-200 or -0.1%) had payrolls fall during the month. Over the past year, Hanford (38%) enjoyed the fastest growth, followed by Yuba (3.7%), Sacramento (2.4%), Redding (2.0%), Fresno (1.9%), Merced (1.8%), Chico (1.7%), Stockton (1.4%), Madera (1.4%), Visalia (1.0%), Bakersfield (0.7%), and Modesto (-1.1%).
• On California’s Central Coast, Salinas (1,000 or 0.7%) added the largest number of jobs. Santa Cruz (100 or 0.1%) also saw payrolls increase during the month. On the other hand, Santa Barbara (-1,000 or -0.5%) saw payrolls fall during the month. From August 2022 to August 2023, Salinas (4.7%) has added jobs at the fastest rate, followed by San Luis Obispo (3.8%), Santa Barbara (2.9%), and Santa Cruz (2.0%).