EMPLOYMENT GROWTH IN THE SACRAMENTO REGION, THE BAY AREA, CALIFORNIA, AND THE UNITED STATES

The Sacramento Region’s job growth experienced another dip after a brief period of flat growth.

Job growth in the six-county Sacramento Region fell to a new low in May 2009. Preliminary data show that the Region lost 5.2 percent of all jobs on payrolls between May 2008 and May 2009, equating to a 48,100-job decline. During the same period, Sacramento’s unemployment rate also saw a significant change, jumping from 6.7 percent to 11.5 percent (just above the statewide average of 11.2 percent). The Sacramento Region’s job growth is still tracking at a level not seen in two decades and notably below the statewide and national averages. Every major sector, with the exception of Educational & Health Services, has experienced slowing job growth over the past year. In recent months, the slowing growth has also been easing in the Leisure & Hospitality and Trade, Transportation, & Utilities sectors.

California’s job growth continued to dip in May 2009, reaching -4.9 percent with a year-over-year loss of 738,800 jobs. Declining job growth is widespread among all of the state’s major sectors, with the exception of Educational & Health Services. Preliminary data show that the national economy also continued to deteriorate with job growth falling to -4.0 percent, reflecting a loss of over 5.5 million jobs.

The Bay Area’s economic conditions also worsened in May 2009. Over the past 12 months, Bay Area employment has declined by 4.4 percent, equating to a total loss of 131,200 jobs. The Bay Area was still seeing positive job growth one year ago, but since then, the region’s job growth decreased by 4.8 percentage points and is currently between the national and statewide averages. Nearly all of the Bay Area’s major sectors have seen the rate of loss accelerating in the past year with Construction and Information seeing the most severe slowdowns.

Major Sector Employment Gains and Losses Sacramento Region, California, and Bay Area Sacramento Regional Research Institute, June 2009 Data Source: Employment Development Department

All but two of the Sacramento Region’s major sectors posted job losses in the past year.

The Sacramento Region’s Educational & Health Services and Government sectors both posted job gains between May 2008 and 2009 despite the overall slowing job growth evident in the remaining major sectors during this time period. The combined 4,100-job gain in these sectors, however, is not even a third of the losses experienced in the Region’s Construction sector. The Construction; Trade, Transportation, & Utilities; and Professional & Business Services sectors each shed over 10,000 jobs in the last 12 months, producing a total loss of 34,800 jobs.

Ten of the 11 major sectors lost jobs statewide in the past year with only Educational & Health Services posting increasing employment (22,100). Like the Sacramento Region, Construction and Trade, Transportation, & Utilities experienced the most severe job losses at the statewide level. Two other sectors that experienced job losses greater than 100,000 in May 2009 include Professional & Business Services and Manufacturing.

Similar to California, all major sectors in the Bay Area economy have experienced job losses or no gain with the exception of Educational & Health Services which posted a 1,700-job gain over the past 12 months. The Trade, Transportation, & Utilities; Construction; and Professional & Business Services sectors posted the largest job losses, each with a job decline over 22,000.