By: California Employment Development Department (EDD)
SACRAMENTO June 15, 2012 – California's unemployment rate decreased to 10.8 percent in May, and nonfarm payroll jobs increased by 33,900 during the month for a total gain of 425,000 jobs since the recovery began in September 2009, according to data released today by the California Employment Development Department (EDD) from two separate surveys.
The U.S. unemployment rate increased in May to 8.2 percent.
In April, the state's unemployment rate was 10.9 percent, and in May 2011, the unemployment rate was 11.9 percent. The unemployment rate is derived from a federal survey of 5,500 California households.
Nonfarm jobs in California totaled 14,276,400 in May, an increase of 33,900 jobs 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 (May 2011 to May 2012) shows an increase of 221,500 jobs (up 1.6 percent).
Employment and Unemployment in California
The federal survey of households, done with a smaller sample than the survey of employers, shows an increase in the number of employed people. It estimates the number of Californians holding jobs in May was 16,501,000, an increase of 25,000 from April, and up 333,000 from the employment total in May of last year.
The number of people unemployed in California was 1,994,000 – down by 12,000 over the month, and down by 182,000 compared with May 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 14,276,400 in May, a net gain of 33,900 jobs since the April survey. This followed a gain of 1,300 jobs (as revised) in April.
Eight categories (mining and logging; construction; manufacturing; information; financial activities; professional and business services; educational and health services; and leisure and hospitality) added jobs over the month, gaining 42,100 jobs. Leisure and hospitality posted the largest increase over the month, adding 13,200 jobs.
Three categories (trade, transportation and utilities; other services; and government) reported job declines over the month, down 8,200 jobs. Trade, transportation and utilities and government posted the largest decreases over the month, each down 3,300 jobs.
In a year-over-year comparison (May 2011 to May 2012), nonfarm payroll employment in California increased by 221,500 jobs (up 1.6 percent).
Eight categories (mining and logging; construction; trade, transportation and utilities; information; financial activities; professional and business services; educational and health services; and leisure and hospitality) posted job gains over the year, adding 268,000 jobs. Professional and business services posted the largest gain on a numerical basis, adding 87,900 jobs (up 4.1 percent). Mining and logging posted the largest gain on a percentage basis, up 4.6 percent (an increase of 1,300 jobs).
Three categories (manufacturing; other services; and government) posted job declines over the year, down 46,500 jobs. Government posted the largest decline on a numerical basis, down by 37,000 jobs (a 1.5 percent decline). Other services posted the largest decline on a percentage basis, down 1.6 percent (a decrease of 7,700 jobs).
In related data, the EDD reported that there were 515,434 people receiving regular unemployment insurance benefits during the May survey week. This compares with 552,163 last month and 553,041 last year. At the same time, new claims for unemployment insurance were 57,545 in May 2012, compared with 63,212 in April and 65,115 in May of last year.
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