California's Unemployment Rate Increases To 9.3 Percent
By: California Employment Development Department (EDD)
SACRAMENTO Jan. 23, 2009 - California's unemployment rate was 9.3 percent in December, and nonfarm payroll jobs declined by 78,200 during the month1, according to data released today by the California Employment Development Department (EDD) from two separate surveys.
The number of people unemployed in California was 1,732,000 - up by 166,000 over the month, and up by 653,000 compared with December of last year.
Of the unemployed, 785,200 were laid off, 125,300 left their jobs voluntarily, and the remaining were either new entrants or reentrants into the labor market, or persons who completed temporary jobs, according to the federal household survey.
PAYROLL EMPLOYMENT DETAIL (SEASONALLY ADJUSTED)
EDD's report on payroll employment (wage and salary jobs) in the nonfarm industries of California totaled 14,913,600 in December, a net loss of 78,200 jobs since the November survey. This followed a loss of 73,500 jobs (as revised) in November.
One category, educational and health services, added jobs over the month, gaining 2,300 jobs. Ten categories (natural resources and mining; construction; manufacturing; trade, transportation and utilities; information; financial activities; professional and business services; leisure and hospitality; other services; and government) reported job declines this month, down 80,500 jobs. Trade, transportation and utilities posted the largest decline over the month, down by 25,400 jobs.
In a year-over-year comparison (December 2007 to December 2008), nonfarm payroll employment in California decreased by 257,400 jobs (down 1.7 percent).
Three industry divisions (natural resources and mining; educational and health services; and government) posted job gains over the year, adding 58,700 jobs. Educational and health services showed the strongest gain on a numerical basis, adding 51,600 jobs (a 3.1 percent increase). On a percentage of growth basis, natural resources and mining showed the strongest gain, up 4.3 percent (adding 1,100 jobs).
Eight categories (construction; manufacturing; trade, transportation and utilities; information; financial activities; professional and business services; leisure and hospitality; and other services) posted job declines over the year, down 316,100 jobs. Construction employment showed the largest decline on both a numerical and percentage basis, down by 92,600 jobs (a decline of 10.8 percent).
UNEMPLOYMENT INSURANCE CLAIMS (NOT SEASONALLY ADJUSTED)
In related data, the EDD reported that there were 655,445 people receiving regular unemployment insurance benefits during the December survey week. This compares with 593,670 last month and 451,098 last year. At the same time, new claims for unemployment insurance were 87,979 in December 2008, compared with 80,920 in November and 56,984 in December of last year.
The U.S. unemployment rate also increased in December to 7.2 percent.
In November, the state's unemployment rate was 8.4 percent, and in December 2007, the unemployment rate was 5.9 percent. The unemployment rate is derived from a federal survey of 5,500 California households.
Nonfarm jobs in California decreased by 78,200 over the month, for a total of 14,913,600, according to an EDD survey that is larger and less variable statistically. The survey of 42,000 California businesses measures jobs in the economy. The year-over-year (December 2007 to December 2008) change shows a decrease of 257,400 jobs (down 1.7 percent).
EMPLOYMENT AND UNEMPLOYMENT IN CALIFORNIA
The federal survey of households, done with a smaller sample than the state employer study, also shows a decrease in the number of employed people. It estimates the number of Californians holding jobs in December was 16,917,000, a decrease of 100,000 from November, and down 323,000 from the employment total in December of last year.
NOTE: The U.S. Bureau of Labor Statistics (BLS) has changed some of its prescribed methods for estimating state job losses and gains in order to try to better match the estimates that come from the larger national sample of businesses. The BLS' new methodology gives less significance to historical data and more significance to sample data from similar industries, as well as extreme high- and low-end survey responses from employers. The BLS hopes these changes will better capture the magnitude of job change during a time of rapid economic change. For many states, including California, the adoption of those changes means a much higher revision in announced job loss estimates for November than usual for any given month. It also means significant job loss estimates for the month of December.
Since these estimates are based on recent survey data, the degree to which these new methods better reflect actual economic events will not be known until the monthly estimates are compared to the universe data reported with employers' quarterly Unemployment Insurance tax returns in the annual benchmarking process that will be conducted in early 2010.
SACRAMENTO Jan. 23, 2009 - California's unemployment rate was 9.3 percent in December, and nonfarm payroll jobs declined by 78,200 during the month1, according to data released today by the California Employment Development Department (EDD) from two separate surveys.
The number of people unemployed in California was 1,732,000 - up by 166,000 over the month, and up by 653,000 compared with December of last year.
Of the unemployed, 785,200 were laid off, 125,300 left their jobs voluntarily, and the remaining were either new entrants or reentrants into the labor market, or persons who completed temporary jobs, according to the federal household survey.
PAYROLL EMPLOYMENT DETAIL (SEASONALLY ADJUSTED)
EDD's report on payroll employment (wage and salary jobs) in the nonfarm industries of California totaled 14,913,600 in December, a net loss of 78,200 jobs since the November survey. This followed a loss of 73,500 jobs (as revised) in November.
One category, educational and health services, added jobs over the month, gaining 2,300 jobs. Ten categories (natural resources and mining; construction; manufacturing; trade, transportation and utilities; information; financial activities; professional and business services; leisure and hospitality; other services; and government) reported job declines this month, down 80,500 jobs. Trade, transportation and utilities posted the largest decline over the month, down by 25,400 jobs.
In a year-over-year comparison (December 2007 to December 2008), nonfarm payroll employment in California decreased by 257,400 jobs (down 1.7 percent).
Three industry divisions (natural resources and mining; educational and health services; and government) posted job gains over the year, adding 58,700 jobs. Educational and health services showed the strongest gain on a numerical basis, adding 51,600 jobs (a 3.1 percent increase). On a percentage of growth basis, natural resources and mining showed the strongest gain, up 4.3 percent (adding 1,100 jobs).
Eight categories (construction; manufacturing; trade, transportation and utilities; information; financial activities; professional and business services; leisure and hospitality; and other services) posted job declines over the year, down 316,100 jobs. Construction employment showed the largest decline on both a numerical and percentage basis, down by 92,600 jobs (a decline of 10.8 percent).
UNEMPLOYMENT INSURANCE CLAIMS (NOT SEASONALLY ADJUSTED)
In related data, the EDD reported that there were 655,445 people receiving regular unemployment insurance benefits during the December survey week. This compares with 593,670 last month and 451,098 last year. At the same time, new claims for unemployment insurance were 87,979 in December 2008, compared with 80,920 in November and 56,984 in December of last year.
The U.S. unemployment rate also increased in December to 7.2 percent.
In November, the state's unemployment rate was 8.4 percent, and in December 2007, the unemployment rate was 5.9 percent. The unemployment rate is derived from a federal survey of 5,500 California households.
Nonfarm jobs in California decreased by 78,200 over the month, for a total of 14,913,600, according to an EDD survey that is larger and less variable statistically. The survey of 42,000 California businesses measures jobs in the economy. The year-over-year (December 2007 to December 2008) change shows a decrease of 257,400 jobs (down 1.7 percent).
EMPLOYMENT AND UNEMPLOYMENT IN CALIFORNIA
The federal survey of households, done with a smaller sample than the state employer study, also shows a decrease in the number of employed people. It estimates the number of Californians holding jobs in December was 16,917,000, a decrease of 100,000 from November, and down 323,000 from the employment total in December of last year.
NOTE: The U.S. Bureau of Labor Statistics (BLS) has changed some of its prescribed methods for estimating state job losses and gains in order to try to better match the estimates that come from the larger national sample of businesses. The BLS' new methodology gives less significance to historical data and more significance to sample data from similar industries, as well as extreme high- and low-end survey responses from employers. The BLS hopes these changes will better capture the magnitude of job change during a time of rapid economic change. For many states, including California, the adoption of those changes means a much higher revision in announced job loss estimates for November than usual for any given month. It also means significant job loss estimates for the month of December.
Since these estimates are based on recent survey data, the degree to which these new methods better reflect actual economic events will not be known until the monthly estimates are compared to the universe data reported with employers' quarterly Unemployment Insurance tax returns in the annual benchmarking process that will be conducted in early 2010.
Labels: California, unemployment
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