California’s job growth slows
(The Center Square) – Job growth has slowed in California, which has a 17.9 million-labor force. Employers added 8,700 nonfarm payroll jobs in March versus 32,300 new hires in February 2023.
The state’s rate of unemployment of 4.4% in March matched that in February 2023, revised up a tenth of a percentage point, according to data from the California Employment Development Department (EDD). Two federal surveys, e.g., businesses and households, are the sources of this labor force data for the Golden State.
Employment grew in six of California’s 11 industry sectors in March versus eight in February. Private education and health care employers led the way in month-over growth with 7,000 new hires in March versus 11,300 in February. In March, payrolls grew for dentists, home health care services and hospitals. This sector had a year-over-year gain of 145,600 jobs.
Government payrolls had the next-biggest growth in March with 6,900 new hires, up from 2,400 job additions in February. Government employment rose in all three of its subsectors, with new hires in local government education in the lead.
California’s construction sector experienced the biggest employment drop, shedding 8,200 jobs in March after adding 7,600 new hires in February. March’s month-over employment losses were in the subsectors of specialty trade contractors and construction of buildings. There were also job losses in highway, street, bridge and residential building construction.
Heavy rains have hammered the Golden State recently. “Extreme weather and flooding likely played a role in the (construction) sector’s month-over decline as atmospheric rivers hit California during the survey week,” including March 12, according to the EDD.
A second plausible factor affecting the negative construction employment figures for March is the monetary policy of the Federal Reserve Bank. Specifically, its interest rate hikes to reduce inflation, a general rise in prices and increases the price of borrowing, which the construction sector relies upon to grow.
The total of farm jobs statewide rose in March. The agriculture industry added 10,500 new hires from February for an aggregate of 434,900 jobs in March. This industry also had a year-over-year increase of 17,000 farm jobs.
North of San Francisco, Marin County had the lowest statewide unemployment rate of 3.8% in March. Rural Colusa County had a 19.2% rate of unemployment, the highest of California’s 58 counties in March.
“In related data that figures into the state’s unemployment rate,” the EDD reported, “there were 414,119 people certifying for Unemployment Insurance benefits during the March 2023 sample week. That compares to 380,768 people in February.”
