State jobless rate dips as jobs added despite pandemic
SACRAMENTO » California has regained more than a third of the 2.6 million nonfarm jobs the most populous state lost to the coronavirus pandemic in March and April, state officials said Friday.
The leisure and hospitality sector accounted for half the overall gain of 96,000 jobs, after experiencing the largest month-to-month loss in August, as restaurants, hotels and other hospitality businesses benefitted from the state’ s easing of restrictions designed to slow the virus’ spread.
Retail trade also rebounded, spurred by more jobs in clothing and clothing accessory stores.
All told, seven of the 11 industry sectors improved in September, dropping the jobless rate to 11%, the California Employment Development Department reported.
The department revised its August figures to add another
nearly 12,000 jobs to what it previously said were about 100,000 jobs added then. It had previously reported the August unemployment rate at 11.4%, but on Friday revised it to 11.2%.
The gains particularly in the restaurant, hospitality, retail and construction sectors are all welcome news, indicating that at least some jobs are returning, said Michael Bernick, former director of the state Employment
Development Department and an attorney with Duane Morris. It’s further good news that the gains were reported statewide, he said.
But Bernick said the “very positive” reports run counter to the economic tracker by Harvard and Brown universities that showed no improvement since Aug. 1, and that local workforce boards are reporting very little new hiring. He suspects the answer is that “California employers are slowly bringing back some of their previous workers, but are not engaging in newhires.”
The biggest September loss was in government jobs, mainly as the U.S. Census shut down temporary jobs. Thursday was the last day for people to fill out their census forms. However, state and local governments have so far largely avoided layoffs.
September marked the second consecutive month since March that the jobless rate was back below the 12.3% high-watermark set in 2010 during the Great Recession.
The state’s nearly 16 million payroll jobs were about 1.5million fewer than a year ago, before the virus derailed the economy. California’s 8.5% decline froma year ago exceeds the 6.4% decrease for the nation as a whole. The state’s leisure and hospitality sector is still down nearly 580,000 jobs from a year ago, by far the largest year-over-year loss.