California’s May 2017 Unemployment Rate Falls to 4.7 Percent - Ties Record Low That Occurred in November-December 2000
The U.S. unemployment rate decreased 0.1 percentage point in May to 4.3 percent, with employers nationwide adding 138,000 nonfarm payroll jobs.
In April, the state’s unemployment rate was 4.8 percent, and in May 2016, the unemployment rate was 5.5 percent. The unemployment rate is derived from a federal survey of 5,500 California households.
Nonfarm payroll jobs in California totaled 16,697,500 in May, according to a survey of businesses that is larger and less variable statistically. The survey of 71,000 California businesses measures jobs in the economy. The year-over change, May 2016 to May 2017, shows an increase of 242,600 jobs (up 1.5 percent).
EMPLOYMENT AND UNEMPLOYMENT IN CALIFORNIA
The federal household survey, done with a smaller sample than the survey of employers, shows an increase in the number of employed Californians over the month and the year. It estimates the number of Californians holding jobs in May was 18,258,000, an increase of 3,000 from April, and up 250,000 from the employment total in May of last year.
The number of unemployed Californians was 898,000 in May – down by 26,000 over the month, and down by 152,000 compared with May of last year.
PAYROLL EMPLOYMENT DETAIL (SEASONALLY ADJUSTED)
EDD’s payroll employment report (wage and salary jobs) in the nonfarm industries of California totaled 16,697,500 in May, a net gain of 17,600 jobs from April. This followed a revised loss of 17,600 jobs in April.
Month-over Job Gains
Eight of California’s eleven industry sectors added a total of 29,400 jobs in May. Government posted the largest jobs increase with a gain of 12,300 jobs, followed by information with a gain of 9,600 jobs. Other sectors adding jobs over the month were trade, transportation and utilities; other services; financial activities; educational and health services; construction; and manufacturing.
Month-over Job Losses
Three industry sectors reported job declines over the month, down a total of 11,800 jobs. Leisure and hospitality posted the largest decrease over the month, down 9,700 jobs, followed by professional and business services, down 1,700 jobs, and mining and logging, down 400 jobs.
Year-over Job Gains
In a year-over-year comparison (May 2016 to May 2017), nonfarm payroll employment in California increased by 242,600 jobs (a 1.5 percent increase).
Nine of California’s eleven industry sectors added a total of 253,200 jobs year-over. The largest job gains were in educational and health services, up 64,600 jobs (a 2.5 percent increase); government, up 46,900 jobs (a 1.9 percent increase); and leisure and hospitality, up 44,000 jobs (a 2.3 percent increase). Other sectors adding jobs over the year were construction; other services; trade, transportation and utilities; professional and business services; financial activities; and information.
Year-over Job Losses
Two industry sectors posted job declines over the year, down a total of 10,600 jobs. Manufacturing fell by 8,900 jobs (down 0.7 percent), and mining and logging was down by 1,700 jobs (a 6.9 percent decrease).
UNEMPLOYMENT INSURANCE CLAIMS (NOT SEASONALLY ADJUSTED)
In related data, the EDD reported that there were 354,371 people receiving regular Unemployment Insurance benefits during the May survey week. This compares with 388,142 in April and 362,535 in May of last year. At the same time, new claims for Unemployment Insurance were 38,252 in May, compared with 45,319 in April and 40,779 in May of last year.