Business & Real Estate

Sacramento area loses jobs in July as state ties all-time unemployment low

The unemployment rate in the Sacramento area climbed in July even while California’s rate hit a record low, according to the state Employment Development Department’s latest jobs report.

In the Sacramento metropolitan area, which includes Sacramento, Placer, Yolo and El Dorado counties, jobs decreased by 2,100 to reach a total of 1,029,300 jobs as the unemployment rate increased slightly to 4 percent, according to the report.

In June, the unemployment rate in the region was 3.7 percent and in May it reached a record low of 3.1 percent. Unemployment is worst in Yolo County, where the rate is 4.3 percent, followed by Sacramento County at 4.1 percent, El Dorado County at 3.8 percent and Placer County at 3.5 percent. The local rates are not adjusted for seasonal fluctuations.

California’s report overall was more optimistic, as the state tied a previous record-low unemployment rate of 4.1 percent originally set in late 2018 and added 19,600 nonfarm payroll jobs. The statewide rate is seasonally adjusted.

The state’s employment numbers have been growing since February 2010, adding 3.2 million jobs since then. California’s 113-month employment expansion is the longest period of growth the state has seen since the 1960s, according to the EDD.

Meanwhile, in the Sacramento area, the public sector lost 3,300 state government jobs and 7,000 local government jobs from June to July, as expected during the summer season as staff is reduced during summer break at schools.

In the same period, the capital region’s construction industry added 2,300 jobs, leading job growth with an above-average increase, while education and health services gained 1,600 jobs and trade, transportation and utilities gained 1,500 jobs.

Health care and social assistance led the gains in education and health while wholesale trade led trade gains.

Since last year, the Sacramento area increased its total number of jobs by 19,700 or 2 percent, mostly in education and health services. The only major industry to lose jobs since last year was the information industry, which lost 500 jobs, while services categorized as “other” lost 300 jobs.

Statewide, month-over-month job losses were worst in the leisure and hospitality industry, which lost 9,200 jobs; government, which lost 3,200 jobs; and information services, which lost 2,500 jobs.

Although construction jobs were up in Sacramento, California lost 800 jobs in the industry in the last month.

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Vincent Moleski covers business and breaking news for The Bee and is a graduate student in literature at Sacramento State. He was born and raised in Sacramento and previously wrote for the university’s student newspaper, the State Hornet.