Region’s job market just keeps growing
Nine-county area fills 3,900 nonfarm spots in November; state jobless rate remains 3.9%
The Bay Area’s job market surged again in November, state labor officials reported Friday, delivering yet another indication that the region’s economy remains strong.
“The Bay Area had another solid month of job growth in November, keeping alive a winning streak the metro area has had going all year,” said Scott Anderson, chief economist with San Francisco-based Bank of the West. “The resilience of Bay Area job growth this year is amazing.”
The nine-county region added 3,900 nonfarm payroll jobs last month just ahead of the crucial holiday shopping season, according to the state’s Employment Development Department. Santa Clara County added 2,100 jobs in November, while the San Francisco-San Mateo metro area gained 2,000.
The East Bay, which led the region’s job gains in October, shed 1,600 positions in November, EDD figures showed. The bulk of those losses came in tech and construction, according to an analysis by Beacon Economics and UC Riverside. All the numbers were adjusted to account for seasonal variations.
California, meanwhile, added 28,400 jobs last month. That extends the Golden State’s job growth to 117 consecutive months, a recordbreaking string that a few months ago surpassed
the prior statewide expansion streak set in the 1960s.
The state’s jobless rate remains at a record low level of 3.9%.
“We’ve never shared the bearish views of many forecasters in the state that there will be a substantial economic slowdown either this year or next,” said Christopher Thornberg, an economist and founding partner with Beacon Economics. “These numbers bear that out.”
Thornberg said the latest numbers are forcing many forecasters to upgrade their outlooks for next year, both statewide and for the Bay Area.
State officials said Friday they want California public agencies to do all they can to keep the economic upswing going.
“As we look ahead to 2020, we resolve to ensure our economy is built on inclusive, sustainable growth and that the jobs in this state are quality jobs that support economic mobility,” said Lenny Mendonca, director of the Governor’s Office of Business and Economic Development.
The Bay Area’s robust performance also appears to have allayed concerns issued by a number of economists who had warned the region could be headed into an employment slump.
In the first 11 months of 2019, the Bay Area has added 88,300 jobs. That’s a whopping 27% higher than the 69,400 jobs the region added in the first 11 months of 2018.
“The Bay Area economy has exceeded even our high expectations so far this year,” Anderson said.
Still, some challenges are on the region’s economic horizon, Anderson suggested.
“A repeat performance in 2020 will be a hard act to follow, given how strong the job growth was this year,”
Anderson said. “The region is facing headwinds from high housing costs, regulatory scrutiny of large technology firms, and slowing population growth.”
During November, the tech sector added 700 jobs in Santa Clara County and 1,100 in the San FranciscoSan Mateo region but shed 400 positions in the East Bay, according to seasonally adjusted figures compiled by Beacon Economics and UC Riverside.
The South Bay also added 400 construction jobs and 300 retail positions. Construction companies, however, chopped 800 jobs in the East Bay and 400 in the San Francisco-San Mateo region, the Beacon-UC Riverside assessment determined.
Despite the job losses in November for the East Bay, the Alameda County-Contra Costa County region did show some strength by adding 700 manufacturing jobs.
The technology industry, arguably the principal engine of the Bay Area economy, isn’t likely to sputter any time soon, some experts said.
“The Bay Area is still adding jobs in the tech sector and tech is likely to continue to see job growth in 2020,” said Mark Vitner, senior economist with Wells Fargo Bank.
Those technology employment trends mean the Bay Area boom is poised to persist. “The Bay Area and California have good momentum going into 2020,” Vitner said.