327,600 drop out of state’s workforce
The dramatic 327,600 drop in November of the state’s workforce alarmed economists and others as the pandemic continues to damage California’s economy and job counts.
The California workforce experienced a 327,600 downsizing in November. The state’s unemployment rate fell to 8.2% during the month. That’s down from 9% in October but exceeds the nationwide rate of 6.7%.
In November, Golden State employers added just 57,100 jobs, bringing payroll to a total of 16.19 million, while Coronavirus was spreading damage all over the planet.
“This is the lowest job gain since the recovery began,” Taner Osman, research manager at Beacon Economics, a Los Angeles consultancy, said. “Given this year’s devastation, adding 47,000 jobs is a drop in the ocean.”
But the jobless rate counts only people who are actively looking for work. Economists said November’s drop reflected a massive exodus of Californians from the labor force: 327,600 who had stopped seeking employment.
“California’s economy lost momentum in November as COVID infections started to climb and federal support programs ran dry,” Lynn Reaser, an economist at San Diego’s Point Loma Nazarene University, said.
She said monthly changes in
labor force can be volatile, “but the pandemic’s overall impact of November has been stark. As of November, California’s labor force was down a striking 627,000 from its February level.
Cumulative cases of the Coronavirus in California have soared from about 870,000 in mid-October to more than 1.7 million. The number was expected to double every 30.6 days by mid-December.
The state accounted for more than a fifth of the US claims, despite having just 11% of the nation’s civilian labor force.
Economists say California’s recovery will depend to a great extent on two factors: The success of a mass vaccination program and the generosity of federal aid for millions of unemployed workers, teetering businesses and cashstrapped state and local governments.
In November, the state’s leisure and hospitality sector grew by 27,000 jobs, the most of any industry group, reflecting in part an expansion of takeout, delivery and outdoor dining.
Los Angeles County gained 29,800 jobs in November, bringing payrolls to a total of about 4.26 million. The largest gain (22,700) was in trade, transportation and utilities. The largest loss was in construction, which shrank by 3,300.
Grocery stores helped boost retail jobs, and, as many Californians avoided shopping in person, online orders for goods fueled a gain in trucking and warehouse positions.