Connect with us

Career & Workplace

California’s Labor Market Recovery Continues… But State Labor Force Contracts For Second Consecutive Month

Published

on

Half of California’s Unemployed Call Their Lay Off “Temporary”

CALIFORNIA LABOR MARKET UPDATE

California’s labor market recovery continued in August, with total nonfarm employment in the state expanding by 101,900 positions, according to an analysis released jointly by Beacon Economics and the UC Riverside School of Business Center for Economic Forecasting and Development. 

One ostensibly positive sign is that the state’s unemployment rate fell to 11.4% in August, a 2.1-percentage-point decline relative to July, although this remains a far cry from the 3.9% rate enjoyed one year ago. Moreover, the unemployment rate fell for the wrong reasons. The month-over-month decline was aided by a decline in the state’s labor force, which contracted by 117,100 during the month, the second consecutive monthly decrease. From a year-over-year perspective, the state’s labor force has declined by 3.7%, a steeper drop relative to the 1.9% decline in the nation overall.

Since February, the number of people looking for work in the state has fallen by 807, 000, a sign that many workers have become discouraged and have stopped actively looking for employment. 

A possibly better sign is that 50% of the state’s unemployed workers report their layoff as temporary, and that they should be returning to work in the coming months. Notably, in April more than 70% of the state’s workers described their unemployment in these terms.    

Key Findings:

  • Government was responsible for the majority of the state’s job gains in August, boosting payrolls by 66,100. Census workers employed by the Federal Government were responsible for the bulk of these, with the Federal Government increasing payrolls by 37,100 during the month. Local Government also had a strong month, with payrolls expanding by 30,700 in August, largely a result of teachers and educational workers returning to their jobs. 
  • This means that private sector positions grew very modestly in August, increasing by just 35,800 during the month. Growth in private sector employment was led by Professional, Scientific & Technical Services (11,800), Administrative Support (9,700), and Transportation, Warehousing & Utilities (9,600). “With respect to private sector job growth, this was a disappointing month,”  said Taner Osman, Research Manager at Beacon Economics and the UCR Center for Forecasting. “To place this month’s figures in perspective, if we continue to add jobs at this level, it will take until 2022 to return the labor market to the position we were in in February of this year.”
  • A handful of sectors shed jobs in August, largely a result of the re-issuance of public health mandates in many parts of the state. Leisure and Hospitality shed the most jobs, decreasing payrolls by 14,600 during the month. Other sectors posting sizeable declines were Other Services, which includes hair and nail salons (-5,700), Information (-4,300), and Management (-2,100). With public health mandates easing in September, these sectors should see a resurgence in next month’s figures. They have been the hardest hit sectors in the state during the COVID-19 pandemic, with Leisure and Hospitality (-31.2%), Other Services (-22.1%), and Information (-9.3%) leading in jobs losses, year-over-year, in percentage terms. 
  • Regionally, job gains were spread fairly evenly across the state, but led by Southern California. San Diego saw the largest increase, where payrolls grew by 23,400 during the month. The Inland Empire (12,200), Los Angeles (MD) (7,200), Ventura (2,700), and Orange County (1,400) also added to their payrolls jump during the month. Over the past year, Orange County (-11.2%) has experienced the steepest job losses in the region, measured by percentage decrease, followed by Los Angeles (MD) (-9.5%), San Diego (-9.0%), the Inland Empire (-8.6%), and Ventura (-7.7%).
  • In the San Francisco Bay Area, San Francisco (MD) experienced the largest increase, with payrolls expanding by 10,100 positions in August. The East Bay (9,900), San Jose (6,100), and Vallejo (2,600) also saw payrolls expand during the month. From a year-over-year perspective, the East Bay (-12.0%) has had the steepest declines in the San Francisco Bay Area, followed by San Rafael (MD) (-10.9%), Napa (-10.3%), San Francisco (MD) (-10.3%), and Vallejo (-10.1%).
  •  In the Central Valley, Sacramento experienced the largest monthly increase as payrolls expanded by 11,500 positions in August. Payrolls in Fresno (5,700), Stockton (4,800), Bakersfield (4,600), Chico (2,100), and (Madera (1,300) increased steadily as well. Over the last year, Yuba (-12.7%) had the steepest declines followed by Modesto (-9.3%), Chico (8.6%), Bakersfield (-8.5%), Stockton (-8.4%), Sacramento (-8.4%), and Visalia (-8.4%).
  • On California’s Central Coast, Santa Barbara added the largest number of jobs, with payrolls increasing by 4,500 during the month. Payrolls in Santa Cruz (3,700), San Luis Obispo (1,700), and Salinas (500) also increased during the month. From a year-over-year perspective, San Luis Obispo (-12.0%) shed positions at the fastest rate, followed by Salinas (-11.2%), Santa Cruz (-10.8%), and Santa Barbara (-9.0%).

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

Continue Reading

Career & Workplace

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

Published

on

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.” 

Continue Reading

Career & Workplace

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

Published

on

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%).
Continue Reading

Business

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

Published

on

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

Continue Reading

Business Journal Newsletter



Events Calendar

« April 2024 » loading...
M T W T F S S
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
4
5

Trending