By: California Employment Development Department (EDD)
SACRAMENTO June 17, 2011 – California's unemployment rate decreased to 11.7 percent in May, and nonfarm payroll jobs decreased by 29,200 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 May to 9.1 percent.
In April, the state's unemployment rate was a revised 11.8 percent, and in May 2010, the unemployment rate was 12.4 percent. The unemployment rate is derived from a federal survey of 5,500 California households.
Nonfarm jobs in California totaled 14,031,700 in May, a decrease of 29,200 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 2010 to May 2011) shows an increase of 87,500 jobs (up 0.6 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 15,947,000, an increase of 8,000 from April, and up 2,000 from the employment total in May of last year.
The number of people unemployed in California was 2,117,000 – down by 24,000 over the month, and down by 134,000 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 14,031,700 in May, a net loss of 29,200 jobs since the April survey. This followed a gain of 14,900 jobs (as revised) in April.
Two categories (information and financial activities) added jobs over the month, gaining 5,200 jobs. Financial activities posted the largest increase over the month, adding 3,200 jobs. Eight categories (construction; manufacturing; trade, transportation and utilities; professional and business services; educational and health services; leisure and hospitality; other services; and government) reported job declines over the month, down 34,400 jobs. Professional and business services posted the largest decrease over the month, down 16,300 jobs. One category, mining and logging, recorded no change over the month.
In a year-over-year comparison (May 2010 to May 2011), nonfarm payroll employment in California increased by 87,500 jobs (up 0.6 percent).
Seven categories (construction; manufacturing; trade, transportation and utilities; information; professional and business services; educational and health services; and leisure and hospitality) posted job gains over the year, adding 189,800 jobs. Educational and health services posted the largest gain on a numerical basis, adding 43,300 jobs (up 2.4 percent). Information posted the largest gain on a percentage basis, up by 7.1 percent (an increase of 30,100 jobs).
Four categories (mining and logging; financial activities; other services; and government) posted job declines over the year, down 102,300 jobs. Government posted the largest decline on both a numerical and percentage basis, down by 95,300 jobs (a decrease of 3.8 percent).
In related data, the EDD reported that there were 553,041 people receiving regular unemployment insurance benefits during the May survey week. This compares with 584,141 last month and 675,201 last year. At the same time, new claims for unemployment insurance were 65,115 in May 2011, compared with 63,739 in April and 70,439 in May of last year.
NOTE: Unemployed Californians who are collecting Unemployment Insurance (UI) benefits are now receiving notice of an upcoming change in their payment method. Beginning July 8, the EDD will start issuing new EDD Debit Cards to customers instead of traditional checks. The cards are a faster, convenient, and more secure payment process. An insert being included with customers' benefit checks informs them that they don't need to do anything since the cards will be issued automatically over the next few months. Look for more information in the weeks ahead.
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