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June unemployment: U.S. and California

According to the Bureau of Labor Statistics report for June 2011, nonfarm payroll unemployment was essentially unchanged (+18,000) and the unemployment rate was little changed at 9.2%. “Little changed” means that it actually increased slightly, from 9.1% in May! U.S. unemployment in June of 2010 was 9.5%. As for California, the Employment Development Department (EDD) report notes that nonfarm payroll jobs in June increased by 28,800, but the unemployment rate increased from 11.7% in May to 11.8% in June! In June of 2010, the California unemployment rate was 12.4% as revised from an initially reported 12.3%.

The year-over-year change (June 2010 to June 2011) in California shows an increase of 156,800 jobs (up 1.1 %.

Back to the U.S, as a whole…. The number of people who were unemployed for less than 5 weeks increased by 412,000 in June. The number of long-term (>27 weeks) unemployed remained relatively constant in June at 6.3 million and represented 44.4% of the unemployed. The report continued:

“The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) was essentially unchanged in June at 8.6  million. These individuals were working part time because their hours had been  cut back or because they were unable to find a full-time job.”

“In June, 2.7 million persons were marginally attached to the labor force, about the same as a year earlier. (These data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.”

“Among the marginally attached, there were 982,000 discouraged workers in June, down by 225,000 from a year earlier. (These data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.7 million persons marginally attached to the labor force in June had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities.”

After gains that averaged 215,000 per month from February through April, employment has been FLAT for the past 2 months, nation wide. The bureau of labor statistics had the following to say about employment in a variety of industries:

“Within professional and business services, employment in professional and technical services increased in June (+24,000). This industry has added 245,000 jobs since a recent low in March 2010. Employment in temporary help services changed little over the month and has shown little movement on net so far this year.”

“Health care employment continued to trend up in June (+14,000), with the largest gain in ambulatory health care services. Over the prior 12 months, health care had added an average of 24,000 jobs per month.”

“In June, employment in mining rose by 8,000, with most of the gain occurring in support activities for mining. Employment in mining has increased by 128,000 since a recent low in October 2009.

Employment in leisure and hospitality edged up (+34,000) in June and has grown by 279,000 since a recent low in January 2010.

Employment in government continued to trend down over the month (-39,000). Federal employment declined by 14,000 in June. Employment in both state government and local government continued to trend down over the month and has been falling since the second half of 2008.

Manufacturing employment changed little in June. Following gains totaling 164,000 between November 2010 and April 2011, employment in this industry has been flat for the past 2 months. In June, job gains in fabricated metal products (+8,000) were partially offset by a loss in wood products (-5,000).

Construction employment was essentially unchanged in June. After having fallen sharply during the 2007-09 period, employment in construction has shown little movement on net since early 2010.

The EDD reported the following for California job categories:

“Seven categories (manufacturing; information; financial activities; professional and business services; educational and health services; leisure and hospitality; and other services) added jobs over the month, gaining 40,900 jobs. Professional and business services posted the largest increase over the month, adding 16,400 jobs. Two categories (construction and trade, transportation and utilities) reported job declines over the month, down 12,100 jobs. Trade, transportation and utilities posted the largest decrease over the month, down 11,000 jobs. Two categories, mining and logging and government, recorded no change over the month.

In a year-over-year comparison (June 2010 to June 2011), nonfarm payroll employment in California increased by 156,800 jobs (up 1.1 percent).

Eight categories (mining and logging; construction; manufacturing; trade, transportation and utilities; information; professional and business services; educational and health services; and leisure and hospitality) posted job gains over the year, adding 222,400 jobs. Professional and business services posted the largest gain on a numerical basis, adding 66,300 jobs (up 3.2 percent). Information posted the largest gain on a percentage basis, up by 6.5 percent (an increase of 27,900 jobs).

Three categories (financial activities; other services; and government) posted job declines over the year, down 65,600 jobs. Government posted the largest decline on both a numerical and percentage basis, down by 61,600 jobs (a decrease of 2.5 percent).”

In California, NEW claims for unemployment in June 2011 were 74,944 as compared with 65,115 in May 2011 and 75,866 in June of 2010.

In June, 22 California counties reported unemployment rates of $15.0% or greater with Imperial County number 1 at 28.5%.

-Bill at

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