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California Labor Market Adds Jobs at a Healthy Pace in Latest Numbers as State Continues its Climb Back from Pandemic Losses

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Unemployment Falls Again But Remains Elevated Relative To Nation

 California’s labor market continued to expand at a steady pace in March, with total nonfarm employment in the state growing by 60,200 positions over the month, according to an analysis released jointly by Beacon Economics and the UCR School of Business Center for Economic Forecasting and Development. February’s gains were revised down to 135,400 in the latest numbers, a 2,700 decrease from the preliminary estimate of 138,100.

While California has added jobs at a healthy pace in 2021 and 2022, as of March 2022, the state has recovered just 89.3% of the jobs that were lost in March and April 2020, and there are now 395,500 fewer people employed in California compared to pre-pandemic February 2020. Total nonfarm employment in the state has contracted 1.7% since this time, compared to a 1.0% decline nationally. With a larger portion of its workforce to be recovered, California increased payrolls by 6.4% from March 2021 to March 2022, well above the 4.5% increase nationally during the same period.

“The strong job gains relative to the nation will continue, since California has more ground to recover compared to the rest of the country,” said Taner Osman, Research Manager at Beacon Economics and the Center for Economic Forecasting. “While macro headwinds, most notably rising interest rates and inflation, gather momentum, it’s not expected to slow employment growth in the coming months as the re-opening tailwinds remain strong.”

California’s unemployment rate fell to 4.9% in March, a 0.4 percentage-point decline from the previous month, which was driven by an increase in household employment (+141,100). California’s unemployment rate remains elevated relative to the 3.6% rate in the United States overall. While growing by 63,100 in March, the state continues to struggle with its labor supply. Since February 2020, the state’s labor force has fallen by 405,100 workers, a 2.1% decline.

Industry Profile  

  • At the industry level, the largest jobs gains continue to occur in sectors hit hardest by the pandemic. While California has gained significant ground in recent months, employment levels in many of these sectors remain below their pre-pandemic levels and should continue to steadily add jobs back over the coming months.
  • Leisure and Hospitality led job gains in March, with payrolls expanding by 14,800. Leisure and Hospitality still has a long way to go to recover all of the jobs lost due to the pandemic as payrolls are still down 9.9% since February 2020.
  • Other sectors posting strong gains during the month were Construction (8,900), Professional, Scientific, and Technical Services (8,700), Health Care (7,000), Other Services (4,900), Wholesale Trade (3,300), Manufacturing (2,900), Education (2,000), Retail Trade (1,900), Finance and Insurance (1,800), and Real Estate (1,800).
  • Job gains were broad based in March with no sector posting losses during the month. The Transportation, Warehousing, and Utilities sector lagged other sectors increasing payrolls by just 100 positions during the month. However, the sector has been a driver of growth in the state during the recovery, with payrolls up 14.6% since February 2020.

Regional Profile

  • Regionally, job gains were led by Southern California. Los Angeles (MD) experienced the largest increase, where payrolls grew by 5,700 (0.1%) during the month. San Diego (5,600 or 0.4%), Orange County (5,000 or 0.3%), the Inland Empire (4,900 or 0.3%), and Ventura (2,000 or 0.7%) also saw their payrolls jump during the month. The Inland Empire (118.6%) has experienced the strongest recovery in the region, measured by the percentage of jobs recovered from April 2020 to March 2022 relative to the jobs lost from February 2020 to April 2020. The Inland Empire is followed by El Centro (105.1%), San Diego (93.1%), Los Angeles (MD) (82.3%), Orange County (80.8%), and Ventura (76.7%).
  • In the Bay Area, San Francisco (MD) experienced the largest increase, with payrolls expanding by 4,800 (0.4%) positions in March. San Jose (3,900 or 0.3%), the East Bay (3,300 or 0.3%), Santa Rosa (400 or 0.2%), and Vallejo (300 or 0.2%) also saw payrolls expand during the month. Since April 2020, San Jose (82.4%) has experienced the strongest recovery in the region, followed by the East Bay (81.1%), Napa (77.2%), Santa Rosa (76.5%), San Francisco (MD) (73.8%), Vallejo (67.9%), and San Rafael (MD) (62.6%).
  • In the Central Valley, Sacramento experienced the largest monthly increase, as payrolls expanded by 6,300 (0.6%) positions in March. Payrolls in Fresno (2,000 or 0.5%), Bakersfield (1,400 or 0.5%), Stockton (800 or 0.3%), Merced (500 or 0.7%), Chico (400 or 0.5%), Modesto (400 or 0.2%), Redding (400 or 0.6%), and Visalia (400 or 0.3%) increased steadily as well. Since April 2020, Stockton (126.7%) has experienced the strongest recovery in the region, followed by Yuba (124%), Visalia (122.1%), Madera (114%), Merced (110.2%), Redding (107.6%), Sacramento (106.4%), and Fresno (103.0%).
  • On California’s Central Coast, Santa Barbara added the largest number of jobs, with payrolls increasing by 1,000 (0.5%) during the month. Salinas (600 or 0.4%), Santa Cruz (600 or 0.6%), and San Luis Obispo (400 or 0.3%) also saw payrolls expand during the month. Since April 2020, and San Luis Obispo (91.8%) has experienced the strongest recovery in the region, followed by Santa Barbara (86.0%), Santa Cruz (82.3%), and Salinas (81.5%).

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

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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