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California's Unemployment Rate Decreases To 12.2 Percent

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By: California Employment Development Department

SACRAMENTO October 16, 2009 – California's unemployment rate was 12.2 percent in September, and nonfarm payroll jobs declined by 39,300 during the month, according to data released today by the California Employment Development Department (EDD) from two separate surveys.

The U.S. unemployment rate increased in September, rising to 9.8 percent.

In August, the state's unemployment rate was a revised 12.3 percent, and in September 2008, the unemployment rate was 7.8 percent. The unemployment rate is derived from a federal survey of 5,500 California households.

Nonfarm jobs in California totaled 14,200,400 in September, a decrease of 39,300 over the month, according to a survey of businesses that is larger and less variable statistically. The survey of 42,000 California businesses measures jobs in the economy. The year-over-year change (September 2008 to September 2009) shows a decrease of 732,700 jobs (down 4.9 percent).

EMPLOYMENT AND UNEMPLOYMENT IN CALIFORNIA

The federal survey of households, done with a smaller sample than the survey of employers, shows a decrease in the number of employed people. It estimates the number of Californians holding jobs in September was 16,137,000, a decrease of 6,000 from August, and down 896,000 from the employment total in September of last year.

The number of people unemployed in California was 2,247,000 – down by 13,000 over the month, but up by 799,000 compared with September of last year.

PAYROLL EMPLOYMENT DETAIL (SEASONALLY ADJUSTED)

EDD's report on payroll employment (wage and salary jobs) in the nonfarm industries of California totaled 14,200,400 in September, a net loss of 39,300 jobs since the August survey. This followed a loss of 7,200 jobs (as revised) in August.

Two categories (natural resources and mining and trade, transportation and utilities) added jobs over the month, gaining 4,100 jobs. Trade, transportation and utilities posted the largest increase over the month, adding 3,900 jobs. Nine categories (construction; manufacturing; information; financial activities; professional and business services; educational and health services; leisure and hospitality; other services; and government) reported job declines this month, down 43,400 jobs. Construction posted the largest decline over the month, down by 14,100 jobs.

In a year-over-year comparison (September 2008 to September 2009), nonfarm payroll employment in California decreased by 732,700 jobs (down 4.9 percent).

One industry division, educational and health services, posted job gains over the year, adding 11,800 jobs (a 0.7 percent increase).

Ten categories (natural resources and mining; construction; manufacturing; trade, transportation and utilities; information; financial activities; professional and business services; leisure and hospitality; other services; and government) posted job declines over the year, down 744,500 jobs. Trade, transportation and utilities employment showed the largest decline on a numerical basis, down by 172,400 jobs (a decline of 6.1 percent). Construction posted the largest decline on a percentage basis, down by 19.0 percent (a decrease of 144,000 jobs).

UNEMPLOYMENT INSURANCE CLAIMS (NOT SEASONALLY ADJUSTED)

In related data, the EDD reported that there were 744,924 people receiving regular unemployment insurance benefits during the September survey week. This compares with 790,099 last month and 500,962 last year. At the same time, new claims for unemployment insurance were 69,160 in September 2009, compared with 69,488 in August and 53,418 in September of last year.

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