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CALIFORNIA EMPLOYMENT SEES WEAKER GAINS IN FIRST MONTH OF 2019; ANNUAL REVISION SHOW MOST STATE INDUSTRIES REMAIN ON TRACK Unemployment Inches Up As Labor Force Continues Growth

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March 11, 2019—LOS ANGELES, CALIFORNIA—Today’s release from Beacon Economics and the UC Riverside School of Business Center for Economic Forecasting and Development includes analysis and commentary on both the January employment numbers and the annual benchmark revision from the California Employment Development Department (EDD).

 

January Numbers
California began 2019 with a weaker than normal monthly gain in January, increasing payrolls by 3,000 in the latest numbers from the California EDD. The yearly pace of growth slowed as well, with the state adding 246,400 jobs from January 2018 to January 2019, an increase of 1.4%. This represents a slightly slower rate of growth than in December 2018 when jobs increased by a revised 1.6% year-over-year, and is behind the national growth rate of 1.9% year-over-year as of January.
California’s unemployment rate inched up to 4.2% in January, a 0.1 percentage point increase from December. However, the driving force behind this increase was an uptick in the state’s labor force, which grew by 50,200 during the month. In yearly terms, the labor force grew by 1.5%, continuing an accelerating trend that began in mid-2018.
”California began 2019 much as it ended 2018, with the unemployment rate in record low territory and industry job gains that have been led by health care, professional and business services, and leisure and hospitality,” said  Robert Kleinhenz  Executive Director of Research at Beacon Economics and the UCR Center for Forecasting. “Looking through the rest of the year, signs point toward continued growth at the state level, with most of California’s regions remaining on track as compared to last year.”

 

Key Findings:
  • Health Care was responsible for the most job gains this month, adding 5,600 positions during  January. This sector has exhibited steady gains for some time, with a year-over-year increase of 2.4% or 56,000 positions.
  • Administrative Services followed Health Care with an increase of 2,800 jobs in January. With these gains, year-over-year growth for the sector reached 2.7%, well above the statewide average of 1.4%. Other sectors having a strong month were, Government (+2,400 positions), Professional, Scientific & Technical Services (+1,700 positions), and Information (+1,400 positions).
  • Despite steady gains for the state overall, a number of sectors shed positions in December. Declines were strongest in Retail Trade, which shed 5,500 positions. Other sectors that lost positions during the month were Education (-3,000 positions), Finance and Insurance (-1,600 positions), Wholesale Trade (-1,400 positions), along with Other Services, Construction, Logistics, and Management of Enterprises.
  • While growth was spread across the state in January, it was strongest in the San Francisco Bay Area. San Jose added the most positions both statewide and in the Bay Area in the latest numbers, increasing payrolls by 5,100. This was followed by San Francisco (MD) (+3,900), the East Bay (+1,200), Santa Rosa (+400), and Vallejo (+200). From a year-over-year perspective, growth has been the fastest in San Francisco (MD) (3.8%), followed by San Jose (2.4%), Napa (1.5%), the East Bay (1.3%), Santa Rosa (1.1%), and Vallejo (0.5%).
  • In Southern California, Orange County added the most positions in January with a gain of 4,200 jobs. San Diego followed with an increase of 100 jobs. The remaining metro areas lost jobs, with Los Angeles shedding 2,600 positions, Riverside down by 2,100 jobs, and Oxnard losing 400 positions. From a year-over-year perspective, growth was fastest in the Inland Empire (1.7%), followed by San Diego (1.5%), El Centro (1.2%), Orange County (1.0%), Ventura County (0.8%), and Los Angeles (0.7%).
  • In the Central Valley, Sacramento added the most positions in January, increasing payrolls by 900 jobs. Growth in Sacramento was followed by Merced (+700), Fresno (+600), and Bakersfield (+400). From a year-over-year perspective, growth has been the fastest in Fresno (3.2%), Sacramento (2.7%), Bakersfield (2.3%), and Madera (2.1%).
  • Along the Central Coast, Santa Barbara added the most positions in January, increasing payrolls by 800 jobs. This was followed by Santa Cruz where payrolls increased by 700 positions during the month, and Salinas (+500). From a year-over-year perspective, growth has been strongest in Salinas (2.8%) and Santa Barbara (2.8%), followed by Santa Cruz (1.1%), and San Luis Obispo (0.8%).
Annual Benchmark Revision
The annual benchmark revision from the California EDD did not change top-level growth. From 2017 to 2018, year-over-year growth averaged 2.0% before and after the revisions. However, there were more payroll positions in 2017 and 2018 than previously estimated, with average monthly employment levels 53,600 higher in the revised figures.

At the industry level, the benchmark revision was mixed, with some sectors seeing growth rates rise and others seeing their growth rates revised downward. The largest increases in year-over-year growth rates from 2017 to 2018 occurred in Mining and Logging (0.3% original to 3.9% revised), Management (0.6% original to 3.2% revised), Other Services (-0.2% original to 1.3% revised), Logistics (3.7% original to 4.9% revised), Real Estate (1.5% original to 2.4% revised), and Manufacturing (0.5% original to 1.2% revised).

The largest declines in year-over-year growth rates from 2017 to 2018 were in Leisure and Hospitality (2.7% original to 1.7% revised), Retail Trade (0.5% original to -0.1% revised), Finance and Insurance (0.1% original to -0.4% revised), Government (1.2% original to 0.9% revised), and Educational Services (3.5% original to 3.1% revised).

The EDD’s annual benchmark revision was also mixed at the metro level, with some areas seeing significant gains in their growth rates and others experiencing declines compared to earlier estimates. The largest increases in year-over-year growth rates from 2017 to 2018 were in Hanford (0.8% original to 3.0% revised), Napa (0.3% original to 2.3% revised), Sacramento (1.8% original to 3.1% revised), San Francisco (MD) (1.9% original to 3.1% revised), and Orange County (1.0% original to 1.9% revised).

The largest declines in year-over-year growth rates from 2017 to 2018 were in Merced (3.9% original to 1.4% revised), Santa Cruz (2.5% original to 0.6% revised), Visalia (2.4% original to 0.9% revised), San Jose (3.3% original to 1.9% revised), and San Rafael (MD) (1.9% original to 0.8% revised).

The Inland Empire Business Journal (IEBJ) is the official business news publication of Southern California’s Inland Empire region - covering San Bernardino & Riverside Counties.

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Career & Workplace

The City of Rancho Cucamonga Recognized as U.S. Best-in-Class Employer by Gallagher 

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Gallagher’s Best-in-Class Benchmarking Analysis Identifies U.S. Organizations That Excel in Optimizing Employee and Organizational Wellbeing 

The City of Rancho Cucamonga participated in Gallagher’s 2023 U.S. Benefits Strategy & Benchmarking Survey and was identified as an organization that excelled in implementing successful strategies for managing people and programs. The City of Rancho Cucamonga was recognized for its comprehensive framework for strategically investing in benefits, compensation and employee communication to support the health, financial security and career growth of its employees at a sustainable cost structure. 

Designations like Gallagher’s Best-in-Class Employer help current and potential employees understand and appreciate an organization’s workplace culture and people strategy; important differentiators as employers compete for talent in today’s labor market. 

“This award is a testament to the collective dedication and unwavering commitment of our team, reflecting the high standards we uphold in fostering a workplace that thrives on innovation, belonging, and employee well-being.” Robert Neiuber, Senior Human Resources Director, City of Rancho Cucamonga. 

A U.S. Best-in-Class Employer, the City of Rancho Cucamonga was assigned points based on its relative performance in: 

  • Plan horizons for benefits and compensation strategies 
  • Extent of the wellbeing strategy 
  • Turnover rate for full-time equivalents (FTEs) 
  • Completion of a workforce engagement survey 
  • Use of an HR technology strategy and its level of sophistication 
  • Difference in healthcare costs over the prior year 
  • Use of a communication strategy 

The City of Rancho Cucamonga understands that high employee expectations haven’t budged in the changing labor market and have regularly examined their formula to attract and retain talent,” said William F. Ziebell, CEO of Gallagher’s Benefits & HR Consulting Division. “In doing so, the City of Rancho Cucamonga utilizes data, workforce feedback tools and clearly defined policies to provide competitive benefits and experiences that their employees value.” 

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Career & Workplace

California Labor Market Closes out 2023 with Modest Growth, but Expect Adjustments when Annual Revision Hits in March

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State’s Workforce Contracts Again; Unemployment Rate Ticks Up

California’s labor market grew modestly in the latest numbers, according to an analysis released today by Beacon Economics. 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.

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. 

Industry Profile  

  • At the industry level, gains were mixed. Healthcare led payroll gains in December, with payrolls expanding by 9,100, an increase of 0.3% on a month-over-month basis. With these gains Healthcare payrolls are now 10.8% above their pre-pandemic peak.
  • Government was the next best performing sector, adding 8,100 jobs, a month-over-month increase of 0.3%. However, with these gains Government payrolls are still 0.3%, or 28,400 jobs, below their pre-pandemic peak.
  • Other sectors posting strong gains during the month were Leisure and Hospitality (7,100 or 0.3%), Education (4,100 or 1.0%), Manufacturing (2,600 or 0.2%), Other Services (1,300 or 0.2%), Wholesale Trade (1,200 or 0.2%), Retail Trade (1,100 or 0.1%), and Real Estate (1,100 or 0.4%).
  • Payrolls decreased in a handful of sectors in December. Transportation, Warehousing, and Utilities experienced the largest payroll declines, with payrolls falling by 4,400, a decline of 0.5% on a month-over-month basis. Other sectors posting declines during the month were Administrative Support (-4,100 or -0.4%), Finance and Insurance (-2,200 or -0.4%), Information (-1,900 or -0.3%), Management (-400 or -0.2%), and Mining and Logging (-200 or -1.0%).

Regional Profile

  • Regionally, job gains were led by Southern California. The Los Angeles County (MD) saw the largest increase, where payrolls grew by 17,800 (04%) during the month. Orange County (6,800 or 0.4%), the Inland Empire (6,400 or 0.4%), San Diego (5,500 or 0.3%), Ventura (500 or 0.2%), and El Centro (200 or 0.3%) also saw their payrolls jump. Over the past year, Ventura (2.6%) experienced the fastest job growth in the region, followed by Orange County (2.1%), Los Angeles (MD) (2.1%), the Inland Empire (1.9%), El Centro (1.9%), and San Diego (1.5%).
  • In the Bay Area, San Francisco (MD) (6,500 or 0.5%) had the largest increase during the month. San Jose (3,000 or 0.3%), Napa (400 or 0.5%, Santa Rosa (400 or 0.2%), and San Rafael (MD) (200 or 0.2%) also saw payrolls expand. Over the past 12 months, Santa Rosa (2.9%) has enjoyed the fastest job growth in the region, followed by San Rafael (MD) (2.4%), the East Bay (1.9%), San Francisco (MD) (1.3%), Vallejo (1.3%), San Jose (1.1%), and Napa (0.8%).
  • In the Central Valley, Sacramento experienced the largest monthly increase as payrolls expanded by 2,400 (0.2%) positions in December. Payrolls in Fresno (1,500 or 0.4%), Merced (600 or 0.9%), Modesto (600 or 0.3%), Madera (300 or 0.7%), Redding (200 or 0.3%), and Yuba (200 or 0.4%) also saw their payrolls jump during the month. Over the past year, Sacramento (2.8%) enjoyed the fastest growth, followed by Yuba (2.7%), Modesto (2.7%), Hanford (2.4%), Fresno (2.2%), Visalia (1.9%), Bakersfield (1.1%), Stockton (0.6%), Madera (0.5%), Chico (0.3%), Merced (-0.3%), and Redding (-1.6%).
  • On California’s Central Coast, Santa Barbara (900 or 0.4%) added the largest number of jobs. Santa Cruz (500 or 0.5%) and San Luis Obispo (400 or 0.3%) also saw payrolls increase during the month. From December 2022 to December 2023, Salinas (4.61%) added jobs at the fastest rate, followed by Santa Barbara (3.4%), San Luis Obispo (2.7%), and Santa Cruz (2.4%).
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Business

The Inland Empire Regional Chamber of Commerce Announces the 2024 Human Resources Conference, led by Atkinson, Andelson, Loya, Rudd & Romo (AALRR)

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Uniting Leaders, Shaping Futures: Charting the Next Course in Human Resources

The Inland Empire Regional Chamber of Commerce, in partnership with Insight HR Consulting and presented by Atkinson, Andelson, Loya, Ruud & Romo (AALRR), announces the much-anticipated 2024 Human Resources Conference. Scheduled for February 15th, 2024, at the Jessie Turner Center, this event is set to be a landmark gathering for HR and business leaders.

Event Details:

  • Date: February 15th, 2024
  • Venue: Jessie Turner Center, [Full Address]
  • Title: 2024 2nd Annual Inland Empire HR Summit: Shaping the Future of Human Resources

The conference is hosted by The Inland Empire Regional Chamber of Commerce, in partnership with Insight HR Consulting. AALRR, a leading full-service law firm, is the presenting sponsor, bringing their extensive legal expertise in employment and labor to the forefront of the event.

“We are thrilled to sponsor and present at the upcoming 2024 Human Resources Conference,” said Amber Solano, AALRR’s Private Labor and Employment Law Practice Group Chair. “With all of the recent changes in the law, we feel this is going to be a valuable event for human resource and business leaders throughout the region.”

The conference offers an invaluable platform for professionals to engage with evolving trends and innovations in HR, preparing them to lead in the changing world of work.

Special Highlights:

  • Renowned HR thought leaders as keynote speakers.
  • Networking opportunities with industry experts and peers.
  • A special focus session by AALRR on the evolving legal landscape in human resources.

“The Inland Empire Regional Chamber of Commerce is proud to collaborate with Insight HR consulting and leading speakers AALRR.  This partnership strengthens our commitment to delivering a conference that truly impacts the HR and Business community.” said Edward Ornelas, Jr., CEO.

For the event schedule, registration, and sponsorship details, please visit hr.iechamber.org

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