(The Center Square) – California’s unemployment rate rose 0.1 percentage point to 4.6% compared with May 2023 as the employers statewide added 11,600 nonfarm payroll jobs, according to data from the California Employment Development Department (EDD). May’s total nonfarm new hires fell by 9,900 jobs in a revision from adjustments in labor estimates.
Sixteen percent of U.S. states experienced a hike in joblessness in June. “Eight states and the District of Columbia experienced unemployment rate hikes from June 2022, the largest of which were in California and the District,” according to the Federal Bureau of Labor Statistics.
Six of California’s 11 industry sectors gained payroll jobs in June compared with May’s employment increases in eight of 11 sectors. Private education and health services employers added 7,000 new hires in June compared with May’s 16,400 jobs.
Leisure and hospitality employers added 6,800 new hires thanks to better-than-average gains in limited-service restaurants and other dining spots. Leisure and hospitality employers had added 9,800 nonfarm payroll jobs in May.
California’s trade, transportation and utilities sector had the largest employment losses of all 11 sectors in June, 7,600 jobs. This loss of nonfarm employment ranged from merchant wholesalers, nondurable goods, couriers and messengers to warehousing and storage.
California’s construction sector gained 6,000 jobs in June compared with 6,500 new hires in May. Federal Reserve Bank interest-rate hikes have harmed the construction sector, given its dependence on borrowed money.
The number of jobs in the agriculture industry increased from May by 10,400 for a total of 440,500 jobs in June, according to the EDD. “The agricultural industry had 20,200 more farm jobs in June 2023 than it did in June a year ago.”
Gov. Gavin Newsom issued a July 14 press release on protecting the state’s labor force from high temperatures. “Cal/OSHA is reminding all employers to protect workers from heat illness as a dangerous heat wave is forecast to impact many parts of the state for the next two weeks. State inspectors are out in full force, conducting targeted high heat inspections with a focus on construction, agriculture, landscaping, and warehouse industries to ensure employers are complying with the law.”
In the meantime, inland counties in California continued to register higher rates of unemployment compared with coastal communities. Imperial County had a 16.9 unemployment rate in June versus 16% in May. San Mateo County had the lowest statewide unemployment rate of 3.1% in June compared with 2.7% in May.
