Labor Force Churn in California and Nevada Continues

California’s job market grew steadily in October 2023, although its labor force (those willing and able to work) is still -217,000 below the state’s pre-pandemic level in early 2020. Meanwhile, Nevada’s job base kept growing as total non-farm employment stood at nearly 1.61 million workers — yet more residents are looking for work today compared to 10 months ago.

The following are the latest year-over-year and month-over October 2023 trends published recently by the California Employment Development Department (EDD) and the Nevada Employment Training and Rehabilitation Department (DETR):

California’s October 2023 Employment Numbers
The California report shows the state’s unemployment rate rose to 4.8 percent in October 2023 (from a “readjusted” 4.7 percent in the month prior). For context, the state’s unemployment rate hit 16.1 percent at one point during the COVID-19 pandemic in 2020.

California employers added 40,200 non-farm monthly payroll jobs in October 2023:

• California’s labor force (pool of individuals willing and able to work) increased by 99,100 in October 2023 from one year before, but it declined -11,100 workers from the month before — and now sits at more than 19.37 million. It also remains approximately -217,000 below its pre-pandemic level in February 2020 of nearly 19.6 million.
• The total number of Californians holding jobs (non-farm payroll, agriculture related, independent contractor/freelancers) was 18.44 million, which is down by -33,700 from the combined total employment level this time last year.
• Non-farm company payroll jobs now total more than 18.15 million. These jobs (a subset of “total” jobs) increased by 285,200 (1.6 percent) from October 2022 to October 2023 compared to a U.S. annual gain of 1.9 percent.
• Ten of California’s 11 industry sectors gained jobs in October, with private education and health services (+3,200) once again leading the way. Health care and social assistance experienced a large increase with above-average gains in outpatient care centers, nursing care facilities, and individual and family services.
• Trade, transportation, and utilities (6,900) also had strong month-over job gains thanks to increases in air transportation, along with couriers and messengers.
• Financial activities (-300) was the only industry sector to show a month-over job loss, which was caused by reductions in credit intermediation and related activities.

Nevada’s October 2023 Employment Numbers
The Nevada report shows employment in the state was up 5,500 jobs in October 2023 (month-over change) and 52,200 jobs from a year ago (3.4 percent annual increase) — which is non-farm payroll company/organization growth.

Total non-farm Nevada employment — which includes non-farm payroll, agriculture related, and independent contractor/freelance jobs altogether — stood at nearly 1.61 million individuals in October 2023. (When it comes to payroll employment specifically, June 2022 was the first month Nevada’s job market finally closed the gap inflicted since the COVID-19 recession in 2020.)

Nevada’s October 2023 unemployment rate stood at 5.4 percent (from a “readjusted” and unchanged 5.4 percent the month before), which is up from 3.7 percent in February of 2020 (pre-pandemic economy). For context, the state’s unemployment rate hit 28.2 percent at one point during the COVID-19 pandemic in 2020.

At the local/regional level, Nevada’s non-farm company payroll employers added, subtracted, or experienced the following trends in October 2023:

• Las Vegas-area employment increased 0.1 percent (1,600 jobs) in October 2023 from the month before and by 39,900 jobs (3.6 percent) since October 2022.
• Reno/Sparks-area employment increased 0.3 percent (800 jobs) in October 2023 from the month before and by 8,500 jobs (3.2 percent) since October 2022.
• Carson City-area employment decreased -0.3 percent (-100 jobs) in October 2023 from the month before, but it increased 900 jobs (2.9 percent) since October 2022.
• More individuals continue to join the workforce, pushing the labor force participation rate (those willing and able to work) up to 62.1 percent in October (up from 61.6 percent a year ago and 61.9 percent last month).

Ongoing Labor Market Perspective
These California and Nevada job market recoveries don’t account for lost ground and opportunity costs coming out of the COVID-19 pandemic.

Specifically in California, the state’s labor force — the pool of individuals willing and able to work — shrunk drastically due to public health restrictions and concerns, policy and employer decisions, the volatile business environment, federal and state financial relief, and worker fluidity in a tight labor market.

Essentially, both California and Nevada job markets may have been even more robust by October 2023 if COVID-19 never impacted the economy and policy decisions, assuming no other negative financial or economic events transpired.