State Job Markets Grow Slowly, Remain Steady Going into Feb

California’s job market continued growing in February 2023, although its labor force (those who are willing and able to work) is still -263,000 below the state’s pre-pandemic level in early 2020. Meanwhile, Nevada’s total non-farm employment remained at a record high of more than 1.53 million individuals.

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

California’s February 2023 Employment Numbers
The California report shows the state’s unemployment rate rose to 4.3 percent in February 2023 (from a “readjusted” 4.2 percent in January 2023). For context, the state’s unemployment rate hit 16.1 percent at one point during the COVID-19 pandemic in 2020.

California employers added 32,300 non-farm monthly payroll jobs in February 2023:

• California’s labor force (pool of individuals willing and able to work) increased by 126,100 in February 2023 from one year before and by 21,200 workers from the month before — and now sits at more than 19.3 million. It remains approximately -263,000 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 more than 18.5 million, which is up 195,000 from the combined total employment level this time last year.
• Non-farm company payroll jobs now total 17.97 million. These jobs (a subset of “total” jobs) increased by 486,500 (2.8 percent) from February 2022 to February 2023 compared to a U.S. annual gain of 2.9 percent.
• Eight of California’s 11 industry sectors gained jobs in February, with private education and health services (11,300) leading the way and strong gains in the health care and social assistance subsector — where most of the gains were centralized in offices of physicians and child day care services.
• Leisure and hospitality (11,200), yet again, enjoyed strong month-over gains thanks largely to limited-service restaurants and other eating places, as well as gains in performing arts, spectator sports, and related industries residual — which includes event and concert promoters and organizers, as well as talent and sports agents.
• Information (-2,900) was the only industry sector to experience a reduction in February 2023, with software publishers contributing to the decline.

Nevada’s February 2023 Employment Numbers
The Nevada report shows employment in the state was up 7,000 jobs in February 2023 (month-over change) and 74,700 jobs from a year ago (a 5.1 percent annual increase).

Total non-farm employment (payroll and independent-contract jobs combined) remained at a record high of more than 1.53 million individuals. 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 February 2023 unemployment rate stood at 5.5 percent (from a “readjusted” and unchanged 5.5 percent in January), 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 employers added the following jobs in February 2023:

• Las Vegas-area employment increased 0.5 percent (6,100 jobs) in February 2023 from the month before and by 58,000 jobs (5.5 percent) since February 2022.
• Reno/Sparks-area employment increased 0.6 percent (1,600 jobs) in February 2023 from the month before and by 12,500 jobs (4.8 percent) since February 2022.
• Carson City-area employment experienced 0 percent change (0 jobs) in February 2023 from the month before and by 1,200 jobs (3.9 percent) since February 2022.
• The month before (January 2023), Nevada experienced the fastest annual job growth in the United States, with Las Vegas seeing the fastest job growth among large metropolitan areas.
• The job market across Nevada remains very tight, with job openings more than 20,000 higher than the total number of unemployed workers.

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 February 2023 if COVID-19 never impacted the economy and policy decisions, assuming no other negative financial or economic events transpired.