June California Employment Report… More Economic News

California’s construction industry continues to lose employment.  During June, 8,500 more people lost jobs bringing the total for the year to 74,400 (12% of the total construction workforce). In previous months, the construction sector lost the most jobs but in June the largest job losses were in the Government Sector.  The Counties with the lowest unemployment are: Marin, San Mateo, and San Francisco – all below 10%. The highest unemployment is 27.6% in Imperial County.  

Unemployment rates by County are:

	Now	Year Ago
Alameda County	11.5%	11.2%
San Francisco County	9.6%	9.6%
San Mateo County	9.2%	9.0%
Santa Clara County	11.3%	11.6%
San Benito County	15.7%	14.1%
Santa Cruz County	11.3%	11.6%
Monterey County	10.8%	9.9%

 

California’s unemployment rate now stands at 12.3% with a national unemployment rate of 9.5%.  At the end of 2008, California’s unemployment rate was 5.3% and nationally 5.8%.The Commerce Department’s report on Gross Domestic Product (GDP) for the second quarter confirmed what many economists had expected.  Although the economy has grown for the fourth straight quarter, the rate of growth has slowed.  Moreover, the nation’s recovery from recession has been tougher than previously thought, based on revised GDP figures the economy from 2007 to 2009 was weaker than originally estimated.  

The second quarter’s GDP – the annualized value of all goods and services produced during April – June, 2010, grew at 2.4%.  This was a marked slowdown from the first quarter’s increase, which was revised to 3.7% from an initial estimate of 2.7%.  Contributing to second quarter growth was a 17% increase in business investment spending while consumer spending increased by less than 2%. 

During normal recoveries, the percentage increases are typically much stronger as described by a “V” shaped recovery.

The government’s annual revision of historical GDP data revealed that the current recession from the fourth quarter 2007 to the second quarter 2009 was deeper than previously thought.  2008 GDP’s annual growth was revised to zero growth for the year from the previously reported 0.4%.  2009’s decline in economic activity was revised from -2.4% to -2.8%.

As reported in Tuesday Facts last week, it is not uncommon for a recession to experience a “lull” in recovery.   Most economists still believe that there is a low probability of a double-dip recession.  However, consumers aren’t sure.  The Conference Board’s gauge of consumer confidence stood at 50.4 in July, a second monthly decline from May’s two-year high of 62.7 (itself below the pre-recession reading of 90).  New home sales increased in June, but the increase was on a very low annual rate of new home construction from May.