June 17, 2016 - SACRAMENTO – California’s unemployment rate decreased to 5.2 percent in May, and nonfarm payroll jobs increased by 15,200 during the month for a total gain of 2,220,600 jobs since the recovery began in February 2010, according to data released today by the California Employment Development Department (EDD) from two separate surveys.
The U.S. unemployment rate was 4.7 percent in May
The state’s unemployment rate declined from 5.3 percent in April and 6.4 percent in May 2015. The unemployment rate is derived from a federal survey of 5,500 California households.
Nonfarm jobs in California totaled 16,407,100 in May, an increase of 15,200 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 state added 440,300 jobs, a 2.8 percent increase, from May 2015 to May 2016.
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 May was 18,081,000, an increase of 9,000 from April, and up 337,000 from May of last year.
The number of people unemployed in California was 995,000 – down by 19,000 over the month, and down by 208,000 compared with May 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 16,407,100 in May, a net gain of 15,200 jobs since the April survey. This followed an April gain of 70,000 jobs, revised up from the preliminary estimate of 59,600 jobs.
Six categories added a total of 32,400 jobs: Information, financial activities, professional and business services, educational and health services, other services, and government. Professional and business services and educational and health services led the way, each with a gain of 12,800 jobs.
Five categories lost a total of 17,200 jobs: mining and logging, manufacturing, construction, trade, transportation and utilities, and leisure and hospitality. Manufacturing had the largest loss, 5,000 jobs.
In a year-over-year comparison (May 2015 to May 2016), nonfarm payroll employment in California increased by 440,300 jobs (up 2.8 percent).
Nine categories gained jobs over the year: construction, trade, transportation and utilities, information, financial activities, professional and business services, educational and health services, leisure and hospitality, other services, and government – a total increase of 456,200 jobs. Educational and health services posted the largest gain on a numerical basis, adding 102,000 jobs, a 4.2 percent increase. Construction posted the largest gain on a percentage basis, up 5.5 percent- adding 39,600 jobs.
Two categories, manufacturing and the mining and logging sector, lost a total of 15,900 jobs over the year. Manufacturing lost 12,100 jobs, a 0.9 percent decrease. Mining and logging lost 3,800 jobs, a 12.9 percent decrease.
UNEMPLOYMENT INSURANCE CLAIMS (NOT SEASONALLY ADJUSTED)
In related data, the EDD reported that there were 362,535 people receiving regular Unemployment Insurance benefits during the May survey week. This compares with 398,005 in April and 379,996 in May of last year. At the same time, new claims for Unemployment Insurance were 42,929 in May, compared with 46,821 in April and 43,040 in May of last year.
Source: EDD
