Bay Area saw big job gains in August

The Bay Area job market rocketed to big gains in August, accounting for nearly 30 percent of all the jobs created statewide, a labor report issued Friday shows.

The job gains in the Bay Area were propelled by robust increases in Santa Clara County, the East Bay, and San Francisco-San Mateo regions, the state Employment Development reported.

“The Bay Area is doing about as well as it could, given the strict coronavirus restrictions, the business shutdowns, and the loss of international travelers,” said Stephen Levy, director of the Palo Altobased Center for Continuing Study of the California Economy.

The employment upswing in the Bay Area was strong enough that the region during August accounted for 29% of all of the jobs added in California — even though the Bay Area has only 19% of California’s population.

The Bay Area added 29,700 jobs during August, the Friday report shows. San Francisco-San Mateo added 10,100 jobs, the East Bay added 9,900 positions, and Santa Clara County gained 6,100 jobs, the EDD reported.

“Technology remains a big help for the economy” in California, Sung Won Sohn, a professor of finance and economics with Loyola Marymount University said. “Remote working, online shopping, social media, and digital streaming have added jobs especially in the southern Bay Area including Santa Clara County.”

California added 101,900 jobs in August, and the statewide unemployment rate improved to 11.4 percent, down from 13.5 percent in July.

The August jobless rate in California was well below the coronavirus-triggered worst-ever rate of 16.4 percent in April and May — but far above the record low rates of 3.9 percent in January and February, which occurred before businesses shut down to combat the coronavirus.

But will the upswing last? Detailed statistics released by Beacon Economics and UC Riverside show that most of the job gains both in California and the Bay Area resulted from government jobs that might be temporary.

The rise in government jobs coincides with the short-term hiring burst by the U.S. government to employ workers to gather data for the 2020 census. Once their tasks are complete, the workers will exit the federal payrolls.

“Government was responsible for the majority of the state’s job gains in August, boosting payrolls by 66,100,” Beacon Economics and UC Riverside said in a report. “Census workers employed by the federal government were responsible for the bulk of these, with the federal government increasing payrolls by 37,100 during the month.”

Of the 29,700 jobs added in the Bay Area during August, 16,800, or 57%, resulted from gains in government jobs, and 12,900, or 43%, occurred due to hiring by the private sector.

Still, private industry employers provided plenty of jobs in each of the Bay Area’s three largest metro centers, according to seasonally adjusted figures provided by Beacon Economics and UC Riverside:

— Santa Clara County: Tech companies added 4,000 jobs, retailers gained 1,400 positions, and health care employers added 1,300 jobs. But hotels and restaurants shed 4,800 jobs with some virus restrictions still in place.

— East Bay: Tech companies added 2,900 positions, retailers increased employment by 1,000, and manufacturers added 1,000 positions.

— San Francisco-San Mateo: Hotels and restaurants added 1,900 jobs, while administrative services and clerical operations added 1,000 positions. However, tech companies cut 800 jobs amid layoff announcements and decisions to exit office spaces in San Francisco.