Job growth is declining across the state, including in Sacramento
Job growth is slowing across the state and the six-county Sacramento Region continues to follow this trend. According to preliminary data, establishments in the Region added 4,100 jobs to payrolls between August 2012 and 2013, equating to a growth rate of 0.5 percent. This annual job growth rate is two basis points lower than in the previous month and 1.7 percentage points below the rate seen at the same time in the previous year. Sacramentoís job growth has fallen below the statewide and national averages for most of 2013 and the gap is widening as job growth has slowed more rapidly in the regional economy. Two of the Sacramento Regionís five largest sectors are now shedding jobs on an annual basis while the other sectors have seen job growth flatten out recently, leading to the slowing, but positive job growth overall. The rate of annual job losses in the Government sector has improved over the past year reaching a level of minimal losses in August 2013. Professional & Business Services was the strongest sector in the regional economy in the summer of 2012, but has dropped steadily to -0.3 percent job growth in August 2013 due primarily to losses in administrative and support services (which includes placement and temporary employment entities). Both the Trade, Transportation, & Utilities and Educational & Health Services sectors have seen fairly flat annual job growth in the Sacramento Region over the past few months with August 2013 rates of 2.9 percent. Following a rapid uptick, the Leisure & Hospitality sector has also held steady in recent months, posting 4.6 percent annual job growth in August 2013 as a result of gains in restaurants and bars.
California's annual job growth dropped to 1.4 percent in August 2013, reflecting a gain of about 203,000 jobs. This rate of growth is more than a full percent point lower than at the same point last year. Sacramento's neighboring regions have also seen similar dips in annual job growth. The SF Bay Area experienced a 1.7 percentage point decline in annual job growth since August 2012 with the most recent rate coming in at 1.7 percent with a 50,000-job increase. Both Stockton and Solano have experienced dramatic declines in recent months following a period when they were among the strongest markets in the state. Stockton posted 1.0 percent job growth in August 2013 equating to an annual gain of 1,900 jobs. Annual job growth in Solano fell to 1.5 percent in August 2013 with an 1,800-job gain. Unlike the trends in California, annual job growth in the national economy has been fairly constant at around 1.7 percent in the last 12 months. Over the 12 months ending August 2013, the nation saw over 2.2 million jobs added to payrolls.
Annual Job Growth
Data Sources: CA Employment Development Department and U.S. Bureau of Labor Statistics
Major Sector Annual Job Gains and Losses
Data Source: CA Employment Development Department
Most major sectors in Sacramento posted job losses in the past year
Patterns among the Sacramento Regionís major sectors have also shifted recently with seven of the eleven again seeing annual job declines. Preliminary data show the greatest losses in the Construction sector with every segment of the industry showing annual declines despite other indicators suggesting continued improvement in the commercial and residential real estate markets. In addition to the three larger sectors, Manufacturing also added jobs between August 2012 and 2013, continuing to buck the statewide and national trend of a constantly declining sector. The net gain of 4,100 jobs moved the Sacramento Regionís total Nonfarm job count to 866,500. This level remains close to where the Region sat in the year 2002 and is over 87,000 jobs below the peak from the summer of 2007.
California posted annual job losses in only four major sectors with the remaining adding jobs over the 12 months ending August 2013. The greatest losses statewide were seen in the Government sector while Leisure & Hospitality moved into the top spot with the greatest gains. The SF Bay Area also saw losses in only four major sectors with the most pronounced decline in the Government sector. Professional & Business Services continued to lead the way in the SF Bay Area, contributing nearly one-third of the overall net gain. With the dramatic turn-around in job growth, the Stockton market is now seeing annual losses in six major sectors with Government showing the largest decline. Only the Leisure & Hospitality and Educational & Health Services sectors posted notable annual job gains in the Stockton market. While Solano has also seen job growth slow rapidly, it posted losses in only the Government sector between August 2012 and 2013. Solanoís largest annual job gains were in the Educational & Health Services sector.