November 15, 2019
Beacon Employment Report
Presented by Beacon Economics and the UCR School of Business Center for Economic Forecasting and Development
Welcome to the Beacon Employment Report, a unique analysis of California’s employment numbers and trends. Each month, we link our own econometric predictions to data released by the U.S. Bureau of Labor Statistics and the California Employment Development Department to identify important changes in employment across industries and regions. The Beacon Employment Report is also one of the few analyses that uses seasonally adjusted numbers, which are critical to revealing accurate trends and insights within data. The analysis is a sample of the kind of research available from the UC Riverside School of Business Center for Economic Forecasting and Development.
CALIFORNIA UNEMPLOYMENT HITS ANOTHER RECORD LOW
Job Growth, Labor Force Continue Expansion; Annual Labor Force Growth Still In Negative Territory
The latest figures released by the California EDD reveal that nonfarm employment in California expanded at a steady pace in October, growing by 23,600 jobs, according to analysis released jointly by Beacon Economics and the UCR School of Business Center for Economic Forecasting and Development. October’s gains are slightly below the state’s average monthly job expansion of 25,677 over the past twelve months. Since October 2018, California has added 308,000 jobs, which is equivalent to a 1.8% year-over-year increase, exceeding the nation’s growth rate of 1.4%.
California’s unemployment rate dipped to 3.9% in October, which represents a new record low. Still, declining labor force growth is a cause for concern. While the state’s labor force expanded for a second straight month, growing by 40,800 workers in October, since October 2018, California’s labor force has decreased by 0.3% or -57,400 workers.
“At 3.9%, California’s unemployment rate has dipped below 4% for the first time on record,” said Taner Osman, Research Manager at Beacon Economics and the UCR Center. “October’s figures also extend the record highs in the number of jobs in the state and reveal that employers in California have added over 300,000 jobs this year, a pace that exceeds the rate of growth in the national economy.”