Center for Strategic Economic Research
Economy Watch and the Quarterly Economic Report are ongoing publications examining various economic growth indicators and other factors in the Sacramento Region. These publications presents a snapshot of current economic conditions in the Sacramento Region and provide comparisons with other selected regions of California and the United States.
November 2014

A monthly report examining the health and performance of the Sacramento Regionís economy

SACRAMENTO REGION JOB GROWTH OUTPACED THE STATE AND NATION

Over the 12 months ending October 2014, the number of jobs on payrolls in the six-county Sacramento Region grew by 2.5 percent, above both the statewide and national averages as well as the rate seen at the same point in the previous year. Preliminary data shows that this reflects a gain of 23,000 jobs from October 2013. Both the core, four-county Sacramento metro area and the Yuba- Sutter area added jobs in the past 12 months. All of the Regionís five largest sectors added jobs in the 12 months ending October 2014 with the most robust growth seen in the Professional & Business Services and Educational & Health Services sectors, 4.8 percent and 4.0 percent, respectively. Both of these sectors experienced growth in all segments. The public sectorís job growth remained rather steady at 1.1 percent, primarily driven by gains in state government. Jobs in the retail-dominated Trade, Transportation, & Utilities sector grew 0.6 percent, an annual average rate lower than at the same point in the previous year. The Leisure & Hospitality sector barely returned to positive territory posting a rate of 0.2 percent in October 2014. The component that includes restaurants and bars showed just enough job gains to compensate for losses in the accommodation and recreational segments.


Annual Job Growth


ALL OF THE REGIONíS LARGEST SECTORS ADDED JOBS IN THE PAST 12 MONTHS

California posted 2.1 percent annual job growth in October 2014 with the number of jobs on payrolls increasing by nearly 320,000. This growth rate was 0.5 percentage points below the same point in the previous year, but stabilizes the stateís overall recent downward growth trend. At the national level, annual job growth was 2.0 percent, slightly above the same point in October 2013, with a gain of 2.8 million jobs. The SF Bay Area is still posting strong annual average job growth, 3.0 percent in October 2014, an annual gain of about 94,000 jobs, but at a lower level than the previous year. This is to be expected as this market is moving through an expansion phase. Both Stocktonís and Solanoís annual average job growth improved from lower rates experienced in previous months. Stockton posted 1.6 percent growth and added 3,300 jobs while Solano added 2,500 jobs with a 2.0 percent annual average growth.

Sacramento Region Largest Sector Annual Job Growth


EIGHT OF SACRAMENTOíS MAJOR SECTORS ADDED JOBS IN THE PAST YEAR

Only two of the Sacramento Regionís 11 major sectors experienced annual job losses between October 2013 and October 2014. These losses were rather minimal especially taking into account that three of the Regionís major sectors gained 5,500 jobs or more, including two of the Regionís largest sectors, Professional & Business Services and Educational & Health Services, as well as Construction. Significant job gains were also posted in the Government and Manufacturing sectors which, respectively, added 2,600 and 1,800 jobs each. Despite losses at the statewide level, the Regionís Financial Activities sector added 1,500 jobs. This sectorís annual job growth has shown much improvement the past two months and now shows annual job gains similar to one year prior. Transportation, & Utilities and Leisure & Hospitality posted the smallest job gains, 900 and 200 jobs, respectively, while the small Mining & Logging sector did not add any jobs since October 2013. Other Services and Information lost a combined total of 1,000 jobs in the past 12 months. The Regionís total Nonfarm employment now stands at around 932,000 after a net gain of 23,000 jobs. This is still at a level seen in 2005óabout 82,000 jobs above the low point in the recent recession (winter of 2011), but around 36,000 jobs below the pre-recession peak from the summer of 2007.

Major Sector Annual Job Gains and Losses


TOTAL REGIONAL EMPLOYMENT IS AROUND THE LEVEL SEEN IN MID-2005

The stateís Professional & Business Services and Educational & Health Services sectors posted the greatest gains while its Financial Activities sector lost jobs in the 12 months ending October 2014. Except for the small Mining & Logging sector, all of the SF Bay Areaís sectors added jobs with Professional & Business Services and Educational & Health Services posting the largest gains. Stocktonís Government and Trade, Transportation, & Utilities sectors added the most jobs while significant job declines were seen in its Manufacturing sector. Construction and Government added the most jobs in Solano.

Sacramento Region Total Nonfarm Employment


THE REGIONíS UNEMPLOYMENT RATE IS FINALLY BELOW THE STATE

For the first time since mid-2006, the Sacramento Regionís seasonally adjusted annual average unemployment rate was below the statewide average. The Regionís October 2014 seasonally adjusted annual average unemployment rate was 7.7 percent, one basis point below the statewide average and 1.6 percentage points below the Regionís October 2013 rate. In October 2014, around 86,000 residents in the Sacramento Region were officially considered unemployed, according to preliminary data. The unemployment rate at the national level declined 1.1 percentage points to 6.4 percent. The SF Bay Area and Solano market posted respective rates of 5.6 and 7.2 percent, while the Stockton market declined 1.8 percentage points, still maintaining a double-digit rate of 11.4 percent.

Unemployment Rate (Seasonally Adjusted Annual Average)