County Unemployment Up to 5.3%, Even With 12,000 New Jobs

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Los Angeles County’s unemployment rate edged up in June to 5.3% from a revised 5.2% in May, according to state figures released today.

At the same time, employers in the county added nearly 12,000 jobs to their payrolls in June, according to the state Employment Development Department.

The slight rise in unemployment occurred in part because 20,000 more Los Angeles County residents returned to the labor force in June, pushing the labor force to 5,021,000. While 16,000 more residents surveyed reported they were working than in the previous month, 4,000 more also reported they were unemployed.

Since the beginning of the year, the county’s unemployment rate has held fairly steady in the low 5% range. That’s slightly above the 5.0% average for the first half of last year.

The statewide unemployment rate in June was 5.2%, while the nationwide rate was well below that at 4.1%. California has had one of the highest unemployment rates in the country for most of the last 12 months.

The state EDD also provides unemployment rates for cities and communities in the county, though unlike the countywide figure, these rates are not adjusted for seasonal factors. In June, the unemployment rate for the two largest cities – Los Angeles and Long Beach – was 6%.

Among cities with labor forces exceeding 10,000, the city with the lowest unemployment rate in June was Lomita at 2.5%. The city with the highest rate was Calabasas at 8.5%.

Turning to the payroll employment figures, the 11,700 net jobs that employers added to their payrolls in June pushed the total figure just past 4.6 million for the first time since December.

The sector posting the biggest payroll job gain in June was local government, which added on net 7,800 jobs. Most of those additional jobs were in K-12 education, which goes against the traditional trend of job losses in that sector as the academic year ends.

Other sectors reporting net job gains in June were motion picture/sound recording (up 3,800), wholesale trade (up 3,100) and construction and manufacturing (both up 1,300).

The sector with the biggest drop in payroll jobs in June was private education, with a drop of 9,700 jobs. This was in keeping with the expected trend of cuts to part-time and temporary staff in that sector as the academic year ends.

For the 12 months ending in June, the county gained 60,000 jobs, for a growth rate of 1.3% when compared to the previous 12-month period. The health care/social assistance sector recorded the largest gain of 37,500 jobs, followed by accommodation/food services (up 13,100) and local government (up 11,200).

Professional/business services posted the largest net drop in payroll jobs for the 12 months ending in June, shedding 11,300 jobs. The manufacturing sector continued its long-term decline, shedding 3,600 jobs over those 12 months. The total of 316,000 employed in manufacturing in June was less than one-third of the 978,000 jobs in that sector in June 1990.

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