Regular readers of this blog know that I’ve periodically stated that the housing market is often affected by the employment picture. The reason is simple. If you have a job, you’re more likely to be able to buy a house. Well, the latest employment statistics likely will have an effect on this. The latest info available indicates that the state is losing lower paying jobs at an increasing pace. This, as is probably obvious, is having a negative impact on the state’s employment picture. We have yet to see if there is any correlative result on the housing market. Curious? Read on.
• The Golden State created 800 jobs (seasonally adjusted) in June, which is the lowest number since the recovery began in 2010 and follows an upward revision to 7,200 jobs added in May, according to the latest numbers from the state Employment Development Department.
Nevertheless, notable losses in seven California industries dragged down the overall number of jobs added. Interestingly, industries with job losses generally employ lower-paid employees.
The four industries that gained jobs added 16,200 positions, with half of them in education and health services, followed by information, government, and professional and business services.
Among the seven industries that reported 15,400 job losses, the largest decreases were in leisure and hospitality; construction; trade, transportation, and utilities; and financial activities. Note that these industries have had some of the strongest job growth so far in 2018. In sum, while the overall number of jobs added appears low, the employment picture is very solid and suggests continued strong wage growth for California workers.
• Over the year, California created 269,100 jobs, with nine industries adding a total of 272,800 positions and two industries losing a total of 3,400 jobs. The largest job gains were in educational and health services, up by 75,800 jobs; professional and business services, up by 42,200 jobs; and leisure and hospitality, up by 41,700 jobs. Other sectors that added jobs over the year were construction; trade, transportation, and utilities; government; information; manufacturing; and financial activities. Other services and mining and logging posted job declines.
• California’s unemployment rate remained at a record-low 4.2 percent in June. Many metropolitan areas showed increases in unemployment rates.
• All California metro areas saw employment rise over the past three months.
• San Francisco and San Mateo counties added 2,000 jobs from May, and the unemployment rate increased to 2.6 percent in June. The information industry added the most jobs, followed by professional and business services. The government and educational and health services sectors experienced significant losses from last month, shedding a respective 1,000 jobs and 1,400 jobs. On an annual basis, the two-county area added 16,900 jobs, with half of those in professional and business services — particularly computer systems design and related services.
The second-largest increase was for health care and social-assistance jobs. The information sector experienced the third-largest net increase. About three-quarters of new jobs added were in high income sectors.
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