Strong unemployment number due partly to smaller work force

County jobless rate at 3.9 percent




 

 

The California Labor Market Information Division recently released its August 2018 report— showing no change in the Ventura County unemployment rate at 3.9 percent, but giving evidence of the strongest job creation across multiple industry sectors in several months. Statewide unemployment held steady at 4.2 per cent.

A gain of 2,500 private sector non-farm jobs in Ventura County is the strongest July to August performance the region has seen in almost 20 years.

The county’s leisure and hospitality industry gained 300 jobs for the month, up 2,500 year-over-year, and remains the area’s strongest-performing sector.

The county showed gains in all of the major industry employment sectors except three: Farm dropped 1,600 jobs, though it’s still up 300 year-over-year; retail trade dropped 200, continuing a downward trend, now off by 900 over the year; and other services lost 100 in August, also down 100 year-over-year.

Construction added another 400 jobs, now up 1,700 year-over-year for a total of 17,800 jobs. This is the sector’s highest employment level since February 2005 and best August since 2004. Although still off still the high-water mark of 21,400 new jobs in June 2006—the movement in construction is encouraging.

Manufacturing added 200 jobs, bringing the year-over-year gain to 500 jobs.

Beaten up badly over the past decade, the financial services sector also added 200 jobs. At 17,300 jobs, the sector is still well below the pre-recession high of 23,000. It’s doubtful it will ever fully recover due to the changing nature of how people conduct their personal finances.

Professional and business services added 700 jobs, about the same as a year ago at this time. Many of the high-paying jobs in the sector exist in Ventura County.

Educational and health services reversed a recent trend of job losses, adding 900 in August and putting the sector back in the black year-over-year.

Government added 900, up 600 over the year, with the gains spread across education and local county government.

Labor force drops

Despite the overall increases, August saw another decline in the total labor force, by 900 workers. And even though Ventura County’s unemployment rate improved year-over-year from 4.8 to 3.9 percent, the county actually lost 1,700 workers over that same period.

The improvement in the area’s unemployment rate is almost entirely because it has 4,000 fewer officially unemployed workers, and a gain of only 2,300 employed workers. In other words, the gains in the data are as much about workers dropping out as they are about workers getting jobs.

In the statewide context: Ventura County’s current unemployment rate of 3.9 percent puts it at 22nd among California’s 58 counties, down three slots from a month ago.

The statewide leaders in unemployment rate continue to be concentrated in the Bay Area, with 7 of the top 9, led by San Mateo at 2.3 percent and San Francisco and Marin at 2.4 percent. Tech is booming.

Looking at the state’s Central and Southern Coast regions, San Luis Obispo held onto the number seven slot statewide at 3 percent and Orange County is close behind in eighth at 3.1 percent. San Diego held to 12th at 3.4 percent. Santa Barbara has moved further ahead of us to 17th at 3.6 percent, with Los Angeles in 38th at 5 percent, unadjusted.

Ventura County is staying ahead of the state as a whole and even with the U.S., which is 3.9 percent, unadjusted for seasonality.

For more detail on unemployment rates statewide, go to labormarketinfo.edd.ca.gov.

Stenslie is the president/ CEO of Economic Development Collaborative Ventura County. For information or questions, call (805) 384-1800, ext. 24, or email bruce.stenslie@edc-vc.com.