The U.S. unemployment rate increased 0.1 percentage point in June to 4.4 percent, with employers nationwide adding 222,000 nonfarm payroll jobs.
In June 2016, the state’s unemployment rate was 5.5 percent. The unemployment rate is derived from a federal survey of 5,500 California households.
Nonfarm payroll jobs in California totaled 16,703,300 in June, according to a survey of businesses that is larger and less variable statistically. The survey of 71,000 California businesses measures jobs in the economy. The year-over change, June 2016 to June 2017, shows an increase of 261,400 jobs (up 1.6 percent).
EMPLOYMENT AND UNEMPLOYMENT IN CALIFORNIA
The federal household survey, done with a smaller sample than the survey of employers, shows a decrease in the number of employed Californians over the month and the year. It estimates the number of Californians holding jobs in June was 18,237,000, a decrease of 21,000 from May, up 198,000 from the employment total in June of last year.
The number of unemployed Californians was 900,000 in June – up by 2,000 over the month, but down by 145,000 compared with June of last year.
PAYROLL EMPLOYMENT DETAIL (SEASONALLY ADJUSTED)
EDD’s payroll employment report (wage and salary jobs) in the nonfarm industries of California totaled 16,703,300 in June, a net loss of 1,400 jobs from May. This followed a revised gain of 24,800 jobs in May.
Month-over Job Gains
Six of California’s eleven industry sectors added a total of 21,500 jobs in June. Professional and business services posted the largest jobs increase with a gain of 9,100 jobs, followed by construction with a gain of 8,100 jobs. Other sectors adding jobs over the month were financial activities; leisure and hospitality; mining and logging; and educational and health services.
Month-over Job Losses
Five industry sectors reported job declines over the month, down a total of 22,900 jobs. Government posted the largest decrease over the month, down 8,800 jobs, followed by information, down 8,100 jobs. Other sectors losing jobs over the month were manufacturing; other services; and trade, transportation and utilities.
Year-over Job Gains
In a year-over-year comparison (June 2016 to June 2017), nonfarm payroll employment in California increased by 261,400 jobs (a 1.6 percent increase).
Eight of California’s eleven industry sectors added a total of 274,000 jobs year-over. The largest job gains were in educational and health services, up 60,900 jobs (a 2.4 percent increase); construction, up 46,500 jobs (a 6.0 percent increase); and leisure and hospitality, up 44,200 jobs (a 2.3 percent increase). Other sectors adding jobs over the year were government; trade, transportation and utilities; professional and business services; other services; and financial activities.
Year-over Job Losses
Three industry sectors posted job declines over the year, down a total of 12,600 jobs. Manufacturing fell by 9,900 jobs (down 0.8 percent), information was down by 1,500 jobs (down 0.3 percent), and mining and logging fell by 1,200 jobs (down 4.9 percent).
UNEMPLOYMENT INSURANCE CLAIMS (NOT SEASONALLY ADJUSTED)
In related data, the EDD reported that there were 330,417 people receiving regular Unemployment Insurance benefits during the June survey week. This compares with 354,371 in May and 345,159 in June of last year. At the same time, new claims for Unemployment Insurance were 46,876 in June, compared with 38,252 in May and 49,975 in June of last year.
Source: EDD
