California economy adds 114,400 jobs; unemployment rate stays at 7.6%August 24, 2021
The Golden State’s labor market is growing. California employers created 114,400 nonfarm payroll jobs in July versus June’s 73,500 hires, according to the state Employment Development Department. July’s unemployment rate of 7.6% matches June’s downward revised rate of 7.6% and is the lowest rate since March 2020, which marks the pandemic’s onset.
California’s unemployment rate remains well above the national rate of 5.4%.
“Of the 2,714,800 jobs lost in March and April 2020 due to the COVID-19 pandemic,” according to an EDD statement, “California has now regained 1,582,900 jobs (58.3%).” The Golden State shed 2,714,800 jobs in March and April 2020, when Gov. [Gavin] Newsom closed the economy to slow transmission of the COVID-19 pandemic.
However, the current spread of the coronavirus delta variant to the Golden State’s labor market of 19 million workers is a concern.
In July 2021, nine of California’s 11 industry sectors grew payroll jobs versus the eight sectors that expanded in June. Growth in food services and drinking places spurred leisure and hospitality employers to add 56,600 new hires in July. Leisure and hospitality employers added 327,000 jobs between July 2020 and July 2021.
Government hiring was second biggest hiring sector in July, adding 35,900 jobs, with year-over-year employment growth of 9,500. Education and health services added 10,400 jobs in July, with 91,900 new hires for the year ending in July 2021. Hiring for telehealth and cybersecurity within health care firms drove payroll job growth in education and health services, according to the EDD.
California’s construction sector gained 1,100 jobs in July after losing 3,000 jobs in June. The state’s construction employers have added 39,900 new hires between July 2020 and July 2021, according to the EDD.
In July’s sample week, 834,513 people certified for Unemployment Insurance benefits versus June’s comparable seven-day period of 592,867.
Manufacturing employment in the Golden State lost 4,500 jobs in July, the biggest month-over reduction, according to the EDD. The state agency cited a large fall in transportation equipment manufacturing for the July decline.
Lynn Reaser is chief economist, Fermanian Business & Economic Institute, at Point Loma Nazarene University. “July’s job report provides further encouragement for women,” she told The Center Square via email. “Companies across a wide range of industries, involving a myriad of education and skill levels, are desperately looking for employees. The opening of schools and additional child tax credits should ease childcare concerns.
“Businesses are offering higher wages, more benefits, hiring bonuses, and other incentives to attract workers. They are willing now to be more flexible to accommodate special scheduling requests women may make. This could be the opportunity of a lifetime for women to secure a position on the job ladder or to make further progress in their career path.”
This article was originally posted on California economy adds 114,400 jobs; unemployment rate stays at 7.6%