Statewide Job Growth Registers Strongly Across Region

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High housing prices have grabbed the headlines, but sustained job growth may end up being what economists in California pay attention to when they look back at 2004.


The state has added 110,000 jobs, and its unemployment rate has fallen 0.6 percentage points to 5.8 percent so far this year, according to seasonally adjusted figures in the UCLA Anderson Forecast.


Because the state is so big, and its major metropolitan regions are economies in their own right, the Anderson Forecast has begun publishing its own adjusted versions of employment data for portions of California so economists can better gauge trends.


According to Anderson Forecast figures, the state saw hearty job growth in October, driven by sector gains in leisure and hospitality, professional services and trade and transport. But due to the state’s budget crunch, the government sector has lost 18,100 jobs year-to-date. Most of the cuts were in public education, said Michael Bazdarich, senior economist at the UCLA Anderson Forecast.


Here’s how Los Angeles and other nearby regions shaped up:



Los Angeles County


After a few years of trailing behind the rest of Southern California, L.A. County job growth managed to match the vigorous gains of the rest of the region in October.


L.A. County added 11,000 jobs in October, a rise of 0.3 percent. The private sector added 14,600 jobs, while the government sector lost 3,600 jobs. Year-to-date, 7,800 government jobs have been lost in the county. Meanwhile, the county’s unemployment rate has fallen to a seasonally adjusted 6 percent, according to Anderson Forecast figures a decline of 0.8 percent year-to-date.


Much of the strength was in the county’s business and professional services sector, including temporary and managerial services (temp hiring is often a sign of permanent hires in the future).



Orange County


The unemployment rate fell to 3.1 percent from 3.2 percent in September, and 3,000 jobs were added in October, according to adjusted numbers. Particularly strong sectors included financial services, business and professional, and leisure and hospitality.


“There has been a nice rebound in these industries in the southern part of the state, and Orange County has participated in this growth,” said Bazdarich. The gains are reflective of the national economy, where better job growth since mid-2003 helped these sectors recover from several bad years.



Inland Empire


Growth has picked up significantly in the last few months and leads the way among all California cities, with a 3.4 percent year-to-date increase in local jobs. The U.S. would have to average 370,000 new jobs each month to match the Inland Empire’s pace.


Job growth has jumped in service sectors such as wholesaling, publishing, finance, education and health, and leisure and hospitality.



Ventura County


Overall, the number of jobs crept up 0.4 percent in October, with private-sector sources contributing about half of the 1,200 new jobs and government sources the other half. The unemployment rate dipped slightly to 4.5 percent, and is down nearly a full percentage point since January 2004.


Year-to-date, Ventura County has seen 1.7 percent year-to-date growth in total jobs and 2.5 percent growth in private-sector jobs, putting it well above both statewide averages.


Anti-growth attitudes have held up the development of new housing in Ventura County, Bazdarich said, even though there is abundant developable land.

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