The U.S. unemployment rate decreased in December to 5.6 percent.
In November, the state’s unemployment rate was 7.2 percent, and in December 2013, the unemployment rate was 8.3 percent. The unemployment rate is derived from a federal survey of 5,500 California households.
Nonfarm jobs in California totaled 15,643,900 in December, an increase of 700 jobs over the month, according to a survey of businesses that is larger and less variable statistically. The survey of 58,000 California businesses measures jobs in the economy. The year-over-year change, December 2013 to December 2014, shows an increase of 320,300 jobs (up 2.1 percent).
EMPLOYMENT AND UNEMPLOYMENT IN CALIFORNIA
The federal survey of households, done with a smaller sample than the survey of employers, shows an increase in the number of employed people. It estimates the number of Californians holding jobs in December was 17,507,000, an increase of 40,000 from November 2014, and up 489,000 from the employment total in December of last year.
The number of people unemployed in California was 1,327,000 – down by 29,000 over the month, and down by 205,000 compared with December of last year.
PAYROLL EMPLOYMENT DETAIL (SEASONALLY ADJUSTED)
EDD’s report on payroll employment (wage and salary jobs) in the nonfarm industries of California totaled 15,643,900 in December, a net gain of 700 jobs since the November survey. This followed a gain of 82,800 jobs (as revised) in November.
Five categories (trade, transportation and utilities; financial activities; educational and health services; leisure and hospitality; and government) added jobs over the month, gaining 18,800 jobs. Leisure and hospitality posted the largest increase over the month, adding 8,300 jobs.
Four categories (construction; information; professional and business services; and other services) reported job declines over the month, down 18,100 jobs.
Two categories (mining and logging and manufacturing) were unchanged over the month.
In a year-over-year comparison (December 2013 to December 2014), nonfarm payroll employment in California increased by 320,300 jobs (up 2.1 percent).
Eight categories (mining and logging; construction; manufacturing; trade, transportation and utilities; information; professional and business services; educational and health services; and leisure and hospitality) posted job gains over the year, adding 325,000 jobs. Professional and business services posted the largest gains on both a numerical and percentage basis, adding 110,900 jobs (up 4.7 percent).
Three categories (financial activities; other services; and government) posted job declines over the year, down 4,700 jobs. Government posted the largest decline on a numerical basis, down 3,500 jobs (a 0.1 percent decrease). Other services posted the largest decline on a percentage basis, decreasing by -0.2 percent (down 1,000 jobs).
UNEMPLOYMENT INSURANCE CLAIMS (NOT SEASONALLY ADJUSTED)
In related data, the EDD reported that there were 436,034 people receiving regular Unemployment Insurance benefits during the December 2014 survey week. This compares with 392,610 last month and 504,558 last year. At the same time, new claims for Unemployment Insurance were 47,858 in December 2014, compared with 60,211 in November and 73,458 in December of last year.
