(The Center Square) – California’s July unemployment rate remained the same from June 2023, as the state’s employers added 27,900 new nonfarm payroll jobs compared with 9,990 in June, according to data from the California Employment Development Department.
In a national comparison, the current Golden State labor market figures sided with those in most other states. “Unemployment rates were lower in July in 7 states, higher in 3 states, and stable in 40 states and the District of Columbia,” the U.S. Bureau of Labor Statistics reported today.
“Nonfarm payroll employment increased in 4 states and was essentially unchanged in 46 states and the District of Columbia in July 2023.”
In July, California’s July nonfarm new hires accounted for 14.9% of the U.S. total of 187,000 jobs. That figure exceeded the state’s 11.6% share of national nonfarm employment, according to the BLS.
Seven of California’s 11 industry sectors gained nonfarm payroll jobs in July versus six of 11 in June, according to the EDD. Government employment led the way with 15,500 new hires in July, due to robust gains in federal government and local government payrolls, excluding education.
Private education and health services employers added 10,800 new hires in July versus 7,000 in June. In this sector, heath care and social assistance employers spearheaded hiring.
Leisure and hospitality employers had 10,300 new hires in July versus 6,800 in June. Those job gains mostly came from hiring of restaurants and other dining establishments, the EDD reported.
The service sector reached 2,061,800 jobs in July, marking a full recovery from the April low of 1,062,000, when the pandemic lockdown became a new normal under the executive directive of California Gov. Gavin Newsom.
In July, California’s trade, transportation and utilities sector gained 4,500 new hires after losing 7,600 jobs in June, according to the EDD.
Professional and business services lost the highest number of jobs across industry sectors in July, 11,400, mainly from employment services firms, “as well as above-average losses in computer system design and related services,” the EDD reported.
California’s construction sector added 500 new hires in July compared with 6,000 jobs. Federal Reserve Bank interest-rate hikes that hike borrowing costs could be slowing down the growth of construction employment.
“Overall, it is a solid month for California employment,” according to Jeffrey Michael, Director of Public Policy Programs and professor of public policy at Pacific McGeorge School of Law in Sacramento. “The state did reach a significant milestone this month in achieving a full recovery of jobs in the leisure and hospitality jobs to pre-pandemic level. Given it was the hardest hit sector by the pandemic, this is significant.
“However, there are still a handful of areas in the state that have not fully recovered including all of the North Bay and wine country, as well as Santa Cruz area, all of which have substantial tourism-dependent hospitality sectors.”
