Issues in Labor Growth, Econ. Mobility as State Job Growth Continues

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California and Nevada’s respective job markets continued growing at vigorous paces in September.

However, some economists say labor force growth — the pipeline entry of adults who are willing and able to work — remains a concern in California, as well as job diversification that raises living standards in Nevada.

The year-over-year figures released every month by the California Employment Development Department (EDD) and the Nevada Employment Training and Rehabilitation Department (DETR) offer a local glimpse for credit union leaders as the national economy continues slowing and fears of a “recession” in 2020 or 2021 have increased.

California’s September Employment Numbers
California’s unemployment rate (view the latest report) fell to a new record low of 4 percent in September as employers added 21,300 non-farm monthly payroll jobs.

September’s job gains contribute to an employment expansion now 115-months long in the state, surpassing the expansion of the 1960s for the longest on record.

Additional California highlights from September 2019:

  • The state has gained nearly 3.5 million jobs since February 2010, accounting for more than 15 percent of the nation’s job gains during that time.
  • The latest job gains were mostly in the sectors of professional/business services (particularly in firms providing employment services), manufacturing, education, and health services.
  • Month-over-month total nonfarm jobs in 11 major industries totaled more than 17.5 million in September.
  • Year-over-year total nonfarm jobs increased by 320,000 jobs (a 1.9 percent increase) from September 2018 to September 2019 compared to the United States’ annual gain of 1.4 percent.

Nevada’s September Employment Numbers
Employment in Nevada (view the latest report) is up 6,000 over the month and 45,200 over the year — numbers that reveal a slower-growth pace compared to the immediate past five-year average.

Additional Nevada highlights from September 2019:

  • The September unemployment rate stood at 4.1 percent (unchanged from August) and is down 0.4 percent compared to September of last year (2018).
  • Total state employment rose 3.2 percent over the year, more than double the U.S. growth rate (1.4 percent).
  • “Professional and business services” added the most jobs of all sectors over the past 12 months.
  • The long-term unemployment (those unemployed for 27 weeks or more) rate stands at 0.8 percent, unchanged over last September.
  • Year-to-date through September, more than 272,000 advertisements have been posted for jobs in Nevada, an increase of 47,500 (21 percent) from the same period last year.
  • Initial unemployment claims totaled just over 8,400 in September, down over 1,200 claims, or 13 percent compared to August (although initial claims increased 2 percent compared to last September, with 150 more claims).
  • Average unemployment duration held steady over the year, at 13.2 weeks. The “exhaustion rate” (rate at which claimants exhaust their unemployment insurance benefits) stands at 34 percent, or 0.4 percentage points higher than last September.

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