Job growth in the Sacramento Region outpaced the state and nation
Between May 2013 and 2014, establishments in the six-county Sacramento Region added 21,000 jobs to payrolls. This preliminary data reflects annual job growth of 2.3 percent in the Region, a rate which exceeded both the statewide and national averages. While Sacramento’s annual job growth has moved between 1.3 percent and 2.8 percent in the past 12 months, the broad trend has been fairly flat with the May 2014 level similar to what was seen in May 2013. For the second straight month, both the core, four-county Sacramento metro area and the Yuba-Sutter area posted positive annual job growth. All of the Sacramento Region’s five largest sectors added jobs in the 12 months ending May 2014 with Professional & Business Services and Educational & Health Services posting the most robust growth. The Professional & Business Services sector experienced annual job gains in all segments while growth in the Educational & Health Services sector continued to be driven by the health care components. The steady public sector gains in the Region are solely a result of state government activities—both local and federal government posted job losses. Annual job growth in the retail-dominated Trade, Transportation, & Utilities sector has been relatively steady, consistent with trends in the overall economy and consumer confidence levels. The volatile Leisure & Hospitality sector shifted back to positive annual job growth following four months in negative territory due to modest improvements in most segments of the sector.
California’s pattern of downward annual job growth continued in May 2014. With a year-over-year gain of over 331,000 jobs, California posted 2.2 percent job growth, which is one percentage point lower than at the same point in the previous year. At the national level, annual job growth in May 2014 came in at 1.8 percent with the addition of almost 2.4 million jobs on payrolls. Unlike California, the nation has seen flat annual job growth since the winter of 2011. Both the Stockton and Solano markets saw a downturn in annual job growth in May 2014. Stockton remained above the national average by posting 2.2 percent growth with an annual gain of 3,900 jobs. The Solano market dropped under the national average with 1.4 percent annual job growth, reflecting a 1,700-job increase in the past 12 months.
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
Five of the Sacramento Region's major sectors saw substantial annual job gains
Ten of the Sacramento Region’s eleven major sectors added jobs over the 12 months ending May 2014. Three of Sacramento’s largest sectors posted the largest annual job gains followed by the Construction sector, which is now seeing growth in every segment. Although relatively small, the Manufacturing sector continued to add jobs in the Sacramento Region even when the state and nation are experiencing a long-term decline in this sector. Information was the only sector in the Region to post job losses between May 2013 and 2014 due to declines in publishing and telecommunications activities, which are less dominant statewide. With a net annual gain of 21,000 Nonfarm jobs, total employment in the Sacramento Region moved up to 924,000. Employment levels in the Region are now 74,000 above the low point in the recession, but still sit at year 2005 points that are about 29,000 below the pre-recession peak.
Over 100,000 jobs were added over the past 12 months within California’s leading sector, Professional & Business Services. Manufacturing and Financial Activities were the only two sectors to experience employment decreases statewide between May 2013 and 2014. Annual job losses in the SF Bay Area were confined to the Financial Activities sector while Educational & Health Services and Professional & Business Services posted the largest gains. The Government sector added the most jobs in the Stockton market in the past year while the Construction sector posted the greatest decline. The most pronounced annual employment increases in the Solano market were in the Trade, Transportation, & Utilities sector. The only job losses in the Solano market in the past year were in the Government sector.