L.A. Jobless Rate Climbs Sharply

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L.A.’s jobless rate took a huge jump in March as thousands more people looked for employment, even as more jobs than expected were added to the local economy as Hollywood kicked into full gear.

The unemployment rate jumped to 5.8 percent in March from 5.3 percent in February and 4.8 percent in March 2007, according to data released Friday from the state Employment Development Department. An estimated 27,000 more L.A. County residents were looking for work in March, adding more than 10 percent to the ranks of the unemployed.

“It’s pretty ugly out there right now. A lot of people are hitting the sidewalks looking for work,” said Jack Kyser, chief economist with the Los Angeles County Economic Development Corp.

Meanwhile, total nonfarm employment increased by 24,800, or 0.6 percent, to 4,113,600 in March compared to February, though it was down 12,500 jobs from this time last year. The March jump was largely due to a hefty 7.5 percent increase in motion picture and sound recording jobs as striking writers returned to their jobs after settling with the major studios in mid-February. Also, Kyser said studios are rushing their production schedules in advance of a possible strike by the Screen Actors Guild early this summer.

Despite March’s jump in motion picture employment, the sector is down sharply (8,600 jobs or 6.7 percent) from year-ago levels as many shows were cancelled as a result of the writers’ strike.

Outside of the entertainment sector, the payroll jobs picture was largely steady in March compared to February, but most sectors were down from year-ago levels. The biggest year-over-year decreases were in construction (down 11,400 jobs), finance/insurance (down 7,900 jobs) and manufacturing (down 6,900 jobs.) The manufacturing sector is in the midst of a long-term contraction as jobs flee overseas or to other states.

Statewide, nonfarm payroll employment was virtually flat in March from February, rising by 1,000 jobs to 15,166,200. But the unemployment rate jumped to 6.2 percent from 5.7 percent and is more than a full percentage point up from the 5.0 percent recorded in March 2007.

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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