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California Job Recovery Has Gained Momentum in 2021; State Cannot Afford Any Slowdown Due to Covid Resurgence

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State’s Unemployment Rate Holds Steady As Workforce Expands

California’s labor market continued to expand at a rapid pace in June, although job growth did slow compared to the previous month, according to an analysis released jointly by Beacon Economics and the UC Riverside School of Business Center for Economic Forecasting and Development. Total nonfarm employment in the state grew by 74,500 positions in June, down from 94,700 in May. Note that May’s gains were revised down by 9,800 in the latest numbers (from the preliminary estimate of 104,500).

Over the past five months, the state’s economy has added 558,700 jobs, representing the fastest hiring surge since the summer of 2020. These gains are welcome since, as of June 2021, there were still 1.24 million fewer people employed in the state compared to February 2020. Total nonfarm employment in California has contracted 7.0% since this time.

This compares unfavorably to the national picture, where the labor market has shrunk by 4.4% over the same period. However, because California has further to go to reach its pre-pandemic peak relative to the nation, the state should continue to see more rapid growth in the coming months.

“While California’s labor market recovery has gained significant momentum in 2021, there is still a substantial jobs deficit compared to pre-pandemic levels and the state’s economy is lagging the national recovery,” said Taner Osman, Research Manager at Beacon Economics and the UCR Center for Forecasting. “At this juncture, with the imminent expiration of extended unemployment benefits, the state cannot afford any slowdown associated with a surge in new COVID cases.”      

California’s unemployment rate held steady at 7.7% in June, unchanged from the previous month, and the state’s labor force expanded by 35,500. California’s unemployment rate remains elevated relative to the 5.9% rate in the United States overall. Since February 2020, the state’s labor force has fallen by 534,300 workers, a 2.7% decline. 

Industry Profile

At the industry level, the largest jobs gains continue to occur in the sectors hardest hit by the pandemic. While California has made up significant ground in recent months, employment levels in many of these sectors remain far below their pre-pandemic levels.

  • Leisure and Hospitality led payroll gains in June, expanding by 44,400 positions. Still, the sector has a long way to go to recover all of the jobs lost due to the economic downturn; payrolls have fallen by 482,700 (-23.5%) since its previous peak in February 2020.
  • Other sectors posting strong gains during the month were Health Care (7,700), Government (7,400), Other Services (7,200), Manufacturing (4,200), and Administrative Support (3,200).
  • A handful of sectors saw their payrolls decline in June. These included Construction (-3,000), Educational Services (1,700), Finance and Insurance (-900), Real Estate (-800), and Mining and Logging (-200).

Regional Profile

  • Regionally, job gains were led by Southern California. Los Angeles (MD) saw the largest increase, where payrolls grew by 29,700 during the month. The Inland Empire (7,500), Orange County (4,500), San Diego (3,700), and Ventura (2,000) also saw payrolls jump during the month. The Inland Empire (73.2%) has experienced the strongest recovery in the region, measured by the percentage of jobs recovered since the depths of the labor market fallout, followed by Ventura (58.4%), Orange County (57.3%), San Diego (52.8%), Los Angeles (MD) (44.5%), and Ventura (43.3%).
  • In the San Francisco Bay Area, San Francisco (MD) experienced the largest increase, with payrolls expanding by 11,900 positions in June. San Jose (2,700), Santa Rosa (1,700), Vallejo (1,200), Napa (700), and San Rafael (MD) (600) also saw payrolls expand during the month. San Rafael (MD) (64.0%) has experienced the strongest recovery in the region since the pandemic’s lows, followed by Napa (57.7%), Vallejo (54.0%), Santa Rosa (50.3%), the East Bay (47.1%), San Jose (46.9%), and San Francisco (MD) (40.3%).
  • In the Central Valley, Fresno experienced the largest monthly increase as payrolls expanded by 2,200 positions in June. Payrolls in Sacramento (1,400), Visalia (900), Chico (800), Modesto (500), and Stockton (500) increased steadily as well. Since April 2020, Stockton (83.6%) has experienced the strongest recovery in the region, followed by Redding (80.5%), Madera (63.8%), Modesto (62.3%), Sacramento (62.2%), Merced (59.1%), Fresno (57.9%) and Chico (53.0%).
  • On California’s Central Coast, Santa Barbara added the largest number of jobs, with payrolls increasing by 1,300 during the month. Salinas (800) and Santa Cruz (200) also saw payrolls expand during the month. Since April 2020, Santa Barbara (59.1%) has experienced the strongest recovery in the region, followed by Salinas (55.4%), San Luis Obispo (37.6%), and Santa Cruz (35.6%). 

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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Inland Empire Regional Chamber of Commerce Welcomes Hawaii Chamber as Honorary Global Member

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Empowering Future Generations: IERCC and Chamber of Commerce Hawaii Forge Partnership for Youth Development

In a landmark meeting that signifies the growing collaboration between regional chambers of commerce, the Inland Empire Regional Chamber of Commerce (IERCC) proudly welcomed the Chamber of Commerce Hawaii as an Honorary Global Member. This momentous occasion was marked by a ceremonial presentation led by Eddy Sumar, MBA, CCE, CICE, a distinguished member and Chair of the Education and Youth Skills Development Liaison at IERCC.

Eddy Sumar, renowned for his passionate advocacy for youth education and skill development, met with Sherry Menor-McNamara, CCE, President & CEO, and Tyler Hunt, Associate Vice President of Membership Services, of the Chamber of Commerce Hawaii. The meeting was not just a formal presentation but also an opportunity to share the innovative approaches IERCC is employing to champion youth development.

In a unique and inspiring gesture, the Chamber of Commerce Hawaii representatives were introduced to IERCC’s youth initiatives through a trilogy of educational books authored by Eddy Sumar himself. These books – “A Treasure Hunt With OTIS,” “The Hidden Dreams,” and “The Cutting Edge” – are a testament to Sumar’s dedication to empowering the youth. Each book addresses critical areas of youth development:

  • “A Treasure Hunt With OTIS” provides wisdom to guide young lives.
  • “The Hidden Dreams” unlocks the potential of identifying and pursuing youthful aspirations.
  • “The Cutting Edge” offers vital insights into understanding credit and financial literacy.

Edward Ornelas, Jr., President & CEO of the Inland Empire Regional Chamber of Commerce, expressed his enthusiasm for this new partnership, stating, “This collaboration with the Chamber of Commerce Hawaii represents a significant step in our ongoing commitment to foster the leaders of tomorrow. By combining our resources and expertise, we can more effectively prepare our youth for the dynamic world they will inherit. Our shared vision for youth development and education is the cornerstone of this partnership.”

The Chamber of Commerce Hawaii expressed its enthusiasm for the collaboration, recognizing the value of the resources provided by IERCC. This partnership is a significant step towards a shared goal of fostering a brighter future for youth through education, skill development, and empowerment.

The Inland Empire Regional Chamber of Commerce is enthusiastically developing plans to launch a summer internship program exclusively for students from the Inland Empire, offering them the opportunity to travel to Hawaii for this enriching experience. This initiative, which stems from the IERCC’s recent collaboration with the Chamber of Commerce Hawaii, is focused on providing Inland Empire students with a unique opportunity to immerse themselves in the diverse business and cultural environment of Hawaii. The program aims to equip these students with invaluable hands-on experience in various industries, enhancing their skills and broadening their perspectives. This visionary approach underscores the IERCC’s dedication to fostering the professional and personal growth of its youth, preparing them for successful careers in an increasingly interconnected world.

The IERCC is committed to continuing these collaborative efforts and looks forward to a fruitful and impactful partnership with the Chamber of Commerce Hawaii, collectively striving to nurture the leaders of tomorrow.

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Corona Factory Files Landmark Trade Secret Lawsuit in New Hampshire Federal Court

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Leading Private Label Company Alleges Massive Data Breach by SGS North America, Inc., Threatening Millions in Investment and Profits

Amid a surge of corporate theft nationwide, U.S. Continental Marketing, Inc. has initiated trade secret litigation against SGS North America, Inc. alleging misappropriation of proprietary and confidential chemical formulations that may cost U.S. Continental millions of dollars.

The largest private label leather and fabric care company in the world, U.S. Continental operates out of a 100,000 square foot factory in Corona, California, and partners with popular footwear, fashion, and furniture brands such as Birkenstock, Timberland, and Michael Kors to develop a range of products. The company provides commercial packaging solutions as well.

In its complaint filed last week in the U.S. District Court for the District of New Hampshire, U.S. Continental alleges that earlier this year, it spent millions to develop five unique and secret chemical formulations for an unnamed customer for use on branded textiles. Those formulas were sent to SGS North America for independent testing.  David Williams, U.S. Continental’s President, explains, “Leading up to its testing, we made very clear to SGS that the confidentiality of any and all information about our formulations was critical. Third parties, and even our customers, could not be privy to our proprietary data and SGS knew that.”

Williams added, “To put a finer point on the sensitivity of the formulations in question, we negotiated an ironclad NDA with SGS, which it signed, promising not to disclose confidential information related to our formulations to anyone without written approval.”

U.S. Continental’s complaint alleges that despite its assurances, SGS twice sent detailed, unredacted testing reports directly to the customer in August, revealing specifics about the chemical formulations SGS promised to keep under wraps.

According to Williams, “By virtue of SGS’s indiscretion, which one of its Vice Presidents cavalierly claimed was a ‘mistake,’ our customer was sent all the information it needed to manufacture essential chemical formulations on its own. That puts at risk the $2 million we invested in R&D, along with another $20 million or so in profits from our manufacturing agreement with the customer. It only gets worse from there if SGS discloses our proprietary information—which it refuses to return—to any others.”

Jeffrey Farrow, a partner at Michelman & Robinson, LLP, which represents U.S. Continental along with local counsel in New Hampshire, says, “It’s beyond crucial that trade secrets, like my client’s chemical formulations, be carefully safeguarded. By failing to do so, SGS breached its NDA—a breach that continues given that the data at issue has yet to be returned despite multiple requests from U.S. Continental. This is simply unacceptable and through this lawsuit, we want SGS to know that its unlawful disclosure of trade secrets, and unlawful retention of them, won’t go unchecked.”

The lawsuit is currently pending and U.S. Continental is awaiting a response from SGS.

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Alibaba.com Partners with Inland Empire Regional Chamber of Commerce to Launch California Pavilion

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In a landmark initiative, Alibaba.com, a global leader in e-commerce, has announced a strategic partnership with the Inland Empire Regional Chamber of Commerce (IERCC) to bolster business opportunities for Small and Medium-sized Enterprises (SMEs) in California. This historic collaboration is set to unveil the California Pavilion on Alibaba.com, a pioneering platform promoting the “Made in California” brand to a global audience.

Join us for a special event where Mattia Miglio, Director of North America Business Development at Alibaba.com, will introduce the California Pavilion alongside representatives from the IERCC. This digital hub is the first of its kind, designed to connect California’s SMEs with international buyers, importers, and distributors, marking a significant milestone in global business expansion.

This initiative sees the convergence of several key trade associations including the California Trade Alliance, California Hispanic Chamber of Commerce, and Valley Industry & Commerce Association, all coming together to transform the SME landscape in California.

As part of the California Pavilion, members will receive an exclusive membership package offering numerous benefits designed to elevate businesses to new heights. This initiative not only supports business growth but also aligns with Alibaba’s vision of empowering SMEs in the global market.

The Inland Empire Regional Chamber of Commerce stands as a pivotal partner in this venture. Known for its innovative approaches and customized support for businesses, the IERCC plays a crucial role in guiding enterprises in the Inland Empire, from startups to established companies.

“We are thrilled to partner with Alibaba.com in this groundbreaking initiative. The California Pavilion is more than just a digital platform; it’s a beacon of opportunity for small and medium-sized enterprises across California. This collaboration is a testament to our commitment to empowering local businesses, giving them the tools and exposure they need to thrive in the global marketplace. We believe that through this partnership, we can elevate the ‘Made in California’ brand to new heights and open doors for unprecedented growth and success for our members”, stated Edward Ornelas, Jr., President & CEO of the IE Chamber.

We invite businesses to explore the advantages of joining the California Pavilion. Learn how this platform can revolutionize your business prospects and connect you with the global market.

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