THIRD QUARTER REPORT - APRIL 2013
Positive job growth in the Sacramento Region moved up again in the first quarter of 2013
The six-county Sacramento Region posted an uptick in annual job growth at the end of the first quarter of 2013. Preliminary data show that payroll employment at establishments in the Region increased by 1.7 percent between March 2012 and 2013, equating to a net gain of 14,200 jobs. Following a major rebound in economic performance which peaked in June 2012, job growth dropped off in the Region through December 2012. Since that point, job growth started moving up again, reaching levels slightly higher than at the same point in the previous year. At the end of the first quarter, regional job growth placed notably below the statewide average, but came in just above the national average. Four of the Sacramento Region’s five largest sectors posted positive annual job growth in March 2013. The Professional & Business Services sector saw the most robust growth at 6.7 percent—a large portion of the gains in this sector came from the temporary or job placement services component, but a notable share of jobs was also created through the professional services segment. The generally improving economic conditions coupled with rising consumer sentiment is reflected in the Trade, Transportation, & Utilities sector which grew by 3.7 percent in March 2013 and is dominated by retail trade activities. The Educational & Health Services sector posted positive annual job growth for the 28th straight month (1.7 percent in March 2013) due to continued expansion of health care activities. While the Leisure & Hospitality sector has maintained positive annual job growth for over two years, the rate of growth has varied substantially with volatility created by the inconsistent regional recovery, which is required to support the major restaurants and bars and entertainment components. The most recent data shows annual job growth in this sector moving back up to 1.5 percent. Sacramento’s largest sector, Government, has experienced consistent negative job growth for 46 straight months with the latest data showing an annual growth rate of
-0.8 percent. Recent losses have primarily fallen within the local government segment. The public sector is hampering overall economic performance substantially with most of the Sacramento Region’s large private sector industries adding jobs at fairly healthy rates.
California posted 2.1 percent annual job growth in March 2013 with a net increase of 302,800 jobs. This rate of growth exceeded the national average and placed the state sixth among all states, falling behind North Dakota, Utah, Texas, Colorado, and Idaho. California’s job growth basically flattened out in June 2012 after showing consistent improvement since shifting back to positive territory in the summer of 2010. Job growth at the national level was slightly lower in March 2013 than at the same point in the previous year. The most recent data show that, nationally, the number of jobs on payrolls increased by 1.5 percent in the past year, reflecting an increase of nearly 2 million jobs. Two of Sacramento’s neighboring markets, the SF Bay Area and Solano, both outpaced the state and the nation in March 2013 with annual job growth of 2.9 percent and 2.8 percent, respectively. The SF Bay Area posted an annual increase of 82,900 jobs with the gains essentially split equally across the San Francisco, Silicon Valley, and East Bay sub-markets. The Solano market saw a gain of 3,300 jobs in the past 12 months. Stockton’s March 2013 annual job growth rate came in at the same level as the Sacramento Region, 1.7 percent, with a 3,200-job increase.
Annual Job Growth
Data Sources: CA Employment Development Department and U.S. Bureau of Labor Statistics
Major Sector Annual Job Gains and Losses
Data Source: CA Employment Development Department
Seven of the Sacramento Region's major sectors added jobs in the past year
Most of the major sectors in the Sacramento Region added jobs over the 12 months ending March 2013. Three of the Region’s largest sectors topped the list—Professional & Business Services; Trade, Transportation, & Utilities; and Educational & Health Services—posting a combined gain of 14,500 jobs (nearly 91 percent of the net private sector increase). Manufacturing and Leisure & Hospitality also posted annual gains in excess of 1,000 jobs each. The two sectors that were decimated by the housing downturn—Construction and Financial Activities—added 500 jobs each over the 12 months ending March 2013, demonstrating the early stages of recovery for Sacramento’s housing market. Only three sectors shed jobs in the past year including the large Government sector along with two of the smaller private sector industries, Other Services and Information. These three sectors posted a total annual decline of 4,400 jobs. With an overall net gain of 14,200 jobs, the Sacramento Region saw total Nonfarm employment reach 864,900 in March 2013. The Region is clearly beginning to make up some of the significant job losses it absorbed during the recession and is now tracking at year 2002 employment levels.
California also posted annual job losses in only three major sectors. Most of the losses occurred in the public sector, primarily in the local government component. Of note, the Manufacturing sector lost jobs statewide in the past 12 months, while the Sacramento Region saw a moderate gain in this sector. The small Mining & Logging sector also lost jobs on an annual basis in the state. The greatest annual gains were posted in California’s Professional & Business Services and Leisure & Hospitality sectors. The SF Bay Area saw the largest annual job increases in the Professional & Business Services sector while losses were confined to the Manufacturing; Other Services; and Government sectors. Only four sectors posted job gains between March 2012 and 2013 in the Stockton market with Trade, Transportation, & Utilities leading the pack. Three sectors lost jobs over the past year in Stockton including Educational & Health Services; Manufacturing; and Government. Job gains in the Solano market were dominated by the Construction and Trade, Transportation, & Utilities sectors while Government was the only sector to shed jobs in the past 12 months.