Job growth continues but unemployment rate holds steady in California, Sacramento

California unemployment held steady at a record-low 3.9 percent last month, although the state’s employers continued to add jobs to their payrolls.

Sacramento’s unemployment rate also was unchanged, at 3.2 percent, showing the region’s economy remains healthy.

The state Employment Development Department said another 12,600 Californians got jobs in December, marking the 118th straight month of job growth. Gov. Gavin Newsom’s administration hailed the latest results — noting that California added jobs at a faster pace than the nation in 2019 — but continued to preach caution in state budgeting.

“As this expansion continues, it’s important that we remain fiscally disciplined,” said Newsom’s chief economic adviser Lenny Mendoca in a prepared statement.

Because of its heavy reliance on personal income tax, which can vary widely from year to year, the state’s budget picture can fluctuate dramatically in an economic downturn. The last two recessions produced deficits in the tens of billions of dollars.

The job gains in December were led by 6,500 new jobs in the professional and business services sector, a wide-ranging category that includes such occupations as accountants and janitors.

For all of 2019, the state added 310,300 nonfarm jobs, up from 278,400 in 2018, according to data compiled by economic consultant Sung Won Sohn of Loyola Marymount University. He said the job growth was strong in spite of labor shortages, the trade war with China and other economic headwinds.

In the four-county Sacramento area, unemployment held steady at 3.2 percent despite a loss of 100 jobs. The region’s construction contractors let 2,500 workers go, which was typical for December.

This story was originally published January 24, 2020 at 11:32 AM.