California unemployment rate increases

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UNEMPLOYMENT1

SACRAMENTO – California’s nonfarm payroll jobs increased by 29,100 during August for a total gain of 826,500 jobs since the recovery began in February 2010, according to data released Friday by the California Employment Development Department.

But California’s unemployment rate increased to 8.9 percent in August.

The U.S. unemployment rate decreased in August to 7.3 percent.

In July, the state’s unemployment rate was 8.7 percent, and in August 2012, the unemployment rate was 10.4 percent. The unemployment rate is derived from a federal survey of 5,500 California households.

The state’s highest unemployment rate in AUGUST was 26.3 percent in Imperial County, down from 26.1 percent in July.

The lowest AUGUST jobless rate was in Marin County at 5.00 percent, down from 5.3 percent in July.

Nonfarm jobs in California totaled 14,671,800 in August, an increase of 29,100 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 (August 2012 to August 2013) shows an increase of 223,900 jobs (up 1.5 percent).

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 August was 16,935,000, a decrease of 53,000 from July 2013, but up 381,000 from the employment total in August of last year.

The number of people unemployed in California was 1,646,000 – up by 23,000 over the month, but down by 279,000 compared with August of last year.

EDD’s report on payroll employment (wage and salary jobs) in the nonfarm industries of California totaled 14,671,800 in August, a net gain of 29,100 jobs since the July survey. This followed a gain of 27,800 jobs (as revised) in July.

Nine categories (mining and logging; construction; manufacturing; financial activities; professional and business services; educational and health services; leisure and hospitality; other services; and government) added jobs over the month, gaining 34,100 jobs. Construction posted the largest increase over the month, adding 7,700 jobs.

Two categories (trade, transportation and utilities; and information) reported job declines over the month, down 5,000 jobs. Information posted the largest decrease over the month, down 3,400 jobs.

In a year-over-year comparison (August 2012 to August 2013), nonfarm payroll employment in California increased by 223,900 jobs (up 1.5 percent).

Seven categories (construction; trade, transportation and utilities; financial activities; professional and business services; educational and health services; leisure and hospitality; and other services) posted job gains over the year, adding 240,300 jobs. Leisure and hospitality posted the largest gains on a numerical basis, adding 66,200 jobs (up 4.1 percent). Construction posted the largest gains on a percentage basis, up 5.0 percent (adding 29,100 jobs).

Four categories (mining and logging; manufacturing; information; and government) posted job declines over the year, down 16,400 jobs. Government posted the largest declines on a numerical basis, down by 12,400 jobs (a 0.5 percent decrease). Mining and logging posted the largest declines on a percentage basis, decreasing by 3.3 percent (down 1,000 jobs).

In related data, the EDD reported that there were 465,922 people receiving regular Unemployment Insurance benefits during the August survey week. This compares with 510,998 last month and 501,158 last year. At the same time, new claims for unemployment insurance were 48,747 in August 2013, compared with 67,382 in July and 51,467 in August of last year.