The California Employment Development Department (EDD) has released job estimates for June 2016. Here are the highlights:
Year over year growth slowing but still strong
The region added 104,100 jobs between July 2015 and 2016 for a gain of 2.6% compared to 1.7% for the nation and 2.3% for California. The pace of growth has slowed from the mid-summer 2015 highs although year over year gains remain robust. The state jobs report showed a gain of 36,400 jobs in July and a year over year gain of 374,600 jobs or 15.3% of the national job gain. These year over year gains understate the strength of local and state economies as the July 2015 job gains were very large and affect the year over year comparisons.
The job gains continue to reduce unemployment rates while the labor force continues to add workers.
Year over year job growth slowed in June as discussed above but remains far above the national average in all metro areas.
While year over year job gains have declined slightly from mid 2015 peaks, they remain in very healthy territory with no signs of a significant loss of competitive advantage. Job growth rates in 2016 are likely to be the peak going forward as baby boomer retirements are slowing labor force growth.
The California job growth trends put the state near of the top of the nation’s most populous states, in part because job growth has accelerated in Southern California and parts of the Central Valley including San Joaquin County adjacent to the Bay Area and also in Fresno County.