Region's unemployment rate falls to 10.8%
Sacramento Business Journal - by Ron Trujillo Editor
Sacramento-area’s jobless rate dropped more than half a percentage point, ending 11 consecutive months of rising unemployment.
The four-county region’s jobless rate dropped to 10.8 percent last month, compared to a modern-day record 11.4 in March — but much higher than the 5.9 percent in April 2008, according to the state Employment Development Department report released Friday. The economy eked out a 200-job increase last month, bringing the jobless rate back down to the January level.
Agriculture added about 1,200 jobs — common for the labor-intensive, mid-spring work — and government created 500 jobs, only with an increase in federal employment as the state and many local governments battling budget deficits trimmed their work forces. The hospitality and leisure industry also created about 200 jobs last month, compared to March.
The retail sector — from national department-store chains to mom-and-pop shops — eliminated about 900 jobs last month, as consumer spending remains sluggish.
For the year, the region has lost 42,700 jobs, or 4.8 percent of its work force, according to the EDD report.
The trade-transportation-utilities sector — which also includes retail — has been the biggest loser, eliminating 12,200 positions, including 8,600 in retail. Construction, another-hard-hit industry, has shed almost 20 percent of its employees, or 11,000 positions. Professional and business services cut 9,000 jobs during the past year, with almost 60 percent from administrative and support services.
Educational and health services remain the bright spot in the downbeat economy, with the creation of 3,700 jobs during the past year.
Despite the dip in the jobless rate, about 114,600 people remain unemployed in the region, slightly better than the 121,700 in March — but almost twice the 62,200 a year ago. Fewer than 50,000 were jobless in the region in April 2005 and 2006.
California’s jobless rate declined to 11 percent last month, compared to 11.2 percent in March and 6.6 percent in April 2008. Despite the decline, the state lost 63,700 jobs last month, from March, the most of any state.
The job-loss figure is derived from interviewing 42,000 businesses, and is considered a better measure of overall employment in the state. Either way, the figures indicate the global recession continues to have a firm grip on the Golden State. The state has lost 706,700 jobs during the past year, the most in the nation. Almost 2.06 million people are unemployed, about 35,000 fewer than a month ago.
Forty-four states have lost jobs, with Texas and Michigan placing second and third on the dubious list. Arkansas, Montana and Florida were the big three job creators nationwide, according to the U.S. Department of Labor.
Michigan’s 12.9 percent unemploment rate last month was the worst in the nation, followed by Oregon and South Carolina at 12 percent and 11.5 percent, respectively.
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