A monthly report examining the health and performance of the Sacramento Regions economy
SACRAMENTOS JOB GROWTH REMAINS ABOVE BOTH THE STATE AND NATION
The number of jobs on payrolls in the six-county Sacramento Region, according to preliminary data, grew by 2.6 percent between November 2013 and 2014a rate which exceeds that seen at the same point in the previous year. This growth reflects a gain of over 23,000 jobs from the previous year and is above the statewide and national averages. All five of the Regions largest sectors experienced positive job growth in the 12 months ending November 2014; however, there still is a wide disparity in performance among these sectors. The Professional & Business Services and Educational & Health Services sectors continued to show the strongest annual growth, 6.0 percent and 3.0 percent, respectively. Professional & Business Services saw an uptick in November 2014 with the largest job gains in the administrative and support services as well as the professional, scientific, and technical services components, while Educational & Health Services experienced a dip in its growth in the past few months due to smaller gains in its health care segment. The Regions three other large sectors posted annual job growth around or below 1 percent. The Regions largest sector, Government, continued with relatively steady job growth, posting 0.8 percent in November 2014 while the Trade, Transportation, & Utilities sector grew 1.3 percent, primarily due to increased gains in the retail trade component. The Leisure & Hospitality sector stayed in positive territory posting a rate of 0.4 percent in November 2014 with most gains in the component that includes restaurants and bars.
Annual Job Growth
ALL OF THE REGIONS LARGEST SECTORS POSTED ANNUAL JOB GAINS
California saw 2.2 percent annual job growth in November 20140.5 percentage points below the same point in the previous year. The number of jobs on payrolls statewide increased by over 344,000. With 2.0 percent annual job growth (nearly 2.8 million jobs) posted in November 2014, the nation maintained its flat level of growth seen throughout the year. The SF Bay Area posted another month of strong annual average job growth, 3.4 percent in November 2014, an annual gain of around 106,000 jobs and the same rate that it posted in November 2013. The Stockton market posted 2.1 percent annual job growth (adding 4,300 jobs) in November 2014, showing further gains since its recent low over the past year in August 2014. The Solano market added 2,500 jobs and remained steady at 2.0 percent.
Sacramento Region Largest Sector Annual Job Growth
TEN OF SACRAMENTOS 11 MAJOR SECTORS ADDED JOBS IN THE PAST YEAR
All but one of the Sacramento Regions 11 major sectors experienced annual job growth between November 2013 and November 2014. Seven of these sectors gained between 1,200 and 7,100 jobs. Professional & Business Services; Construction; and Educational & Health Services posted the largest annual gains. The Other Services and the Mining & Logging sectors posted the smallest job gains over the past year in November 2014200 and 12 jobs, respectively. The Regions Information sector lost 600 jobs in the past 12 months. The Regions total Nonfarm employment now stands at around 938,000 after a net gain of over 23,000 jobs. This is still at a level seen in late 2005about 88,000 jobs above the low point in the recent recession (winter of 2011), but around 30,000 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 LATE-2005
Statewide, nine of the 11 major sectors added jobs in the 12 months ending November 2014. The states Professional & Business Services and Educational & Health Services sectors posted the greatest gains while its Government and Other Services sectors lost jobs. Except for the Other Services sector which suffered a minimal loss and the small Mining & Logging sector which showed no growth, all of the SF Bay Areas sectors added jobs. The SF Bay Areas Professional & Business Services and Educational & Health Services posted the largest gains. Stocktons Government and Leisure & Hospitality sectors added the most jobs while 1,000 jobs were lost in its Manufacturing sector. Construction and Leisure & Hospitality added the most jobs in Solano while Professional & Business Services and Other Services experienced small declines in jobs.
Sacramento Region Total Nonfarm Employment
THE REGIONS UNEMPLOYMENT RATE IS JUST BELOW THE STATE
The Sacramento Regions November 2014 seasonally adjusted annual average unemployment rate was 7.6 percent, one basis point below the statewide average and 1.6 percentage points lower than the same point in the previous year. According to preliminary data, around 85,000 residents in the Sacramento Region were officially considered unemployed. Since November 2013, the unemployment rate at the national level declined 1.2 percentage points to 6.3 percent. The SF Bay Area and Solano market posted respective rates of 5.5 and 7.1 percent. The Stockton market declined 1.8 percentage points from the previous year, but its seasonally adjusted annual average unemployment rate still is still one of the highest in the state and nation at 11.3 percent.
Unemployment Rate (Seasonally Adjusted Annual Average)