SoCal Sees Dip In Unemployment Rate; Swaths Of Jobs Added

LOS ANGELES, CA — The Golden State recorded a new unemployment low in July that hasn't been seen since 1976 and recovered thousands of jobs that were previously lost during the COVID-19 pandemic, according to the latest report from the Employment Development Department.

California's unemployment rate dropped from 4.2 percent in June to 3.9 percent in July. What's more, the state accounted for 16.1 percent of all new jobs across the nation in July, according to the EDD.

"Californians are getting back to work with record low unemployment," Gov. Gavin Newsom said in a statement. "We have historic reserves and we're putting money back in peoples’ pockets as we continue to lead the nation’s economic recovery."

The state added 84,800 confirm jobs in July and the number of employed Californians rose by 23,000.

But experts warn that the low rate could be inflated by underemployment and low paying jobs.

"Sure, more people have jobs now, which is good on paper. But these jobs are not replacing the higher payed jobs that came with benefits. These jobs are generally lower paying and come with fewer, if any, benefits," Raymond Fletcher, a Los Angeles-based economist who specializes in underemployment, told the California Globe.

Fletcher added that despite the state's low employment rate, homelessness and affordable housing is still a huge issue, especially in the Southland.

"Think about the juxtaposition here; we have an all-time low in unemployment, yet tens of thousands are still homeless in LA alone," he said. "These were supposed to be really good-feeling statistics, but all they are really doing is hiding the numerous employment and job problems in California that can crash those ‘good figures’ down at any time."

Here are the unemployment rates across Los Angeles, San Diego, Riverside and Orange counties.

Los Angeles County

Los Angeles County's seasonally adjusted unemployment rate dipped to 5 percent in July, down from a revised 5.1 percent in June, the EDD reported. July's rate fell dramatically below 9 percent rate recorded in July 2021.

According to the EDD, total nonfarm employment in Los Angeles County decreased by 24,500 jobs between June and July to reach more than 4.5 million. But professional and business services added 6,900 jobs — the largest rise among all sectors. The government sector led the way by losing 44,400 positions, largely because of schools going on summer break.

Orange County

Orange County's unemployment rate was 2.8 percent, down just a hair from 2.9 percent in June. In July 2021, the unemployment rate was 6.4 percent, according to the EDD.

The county added 5,600 nonfarm jobs between June and July. Leisure and hospitality jobs increased by 6,500 jobs, the most of any sector.

Arts, entertainment and recreation accounted for 55 percent of the growth, up 3,000 jobs. Meanwhile, accommodation and food services grew by 2,900 jobs, which was led by an uptick in food services and bars.

Two sectors saw a decline, with government jobs down by 15,800 jobs and financial activities losing 700 jobs, according to the EDD.

San Diego County

The unemployment rate in San Diego County was 3.1 percent in July, down from 3.2 percent in June and well below last year's 6.9 percent, employment data revealed.

Nonfarm jobs decreased by 6,700 from 1,515,500 to 1,508,800. In addition, agricultural contracted by 200, from 9,900 to 9,700, the EDD reported.

Similar to neighboring Orange County, jobs in leisure and hospitality, up by 4,600, led all industries in month-over job gains. Some 3,400 food services jobs were added and 700 jobs in arts, entertainment and recreation were added.

Since last year, professional and business services saw a job growth of 12,900. Additional year-over employment growth were also reported in government with 8,300 new jobs, other services with 5,200 jobs, educational and health services with 4,900 jobs, trade, transportation, and utilities with 4,600 jobs, construction with 3,000 jobs and information with 100.

Riverside County

The unemployment rate in Riverside County dipped to 3.9 percent in July, inching down slightly from 4 percent in June and dropping by half since last July's 8 percent.

Between June and July, nonfarm employment saw a decrease of 4,000 jobs. Agricultural employment also decreased by 2,100 jobs in a month.

Government jobs recorded the only payroll decrease over the month. Jobs in trade, transportation and utilities recorded the largest payroll increase over the month, with jobs in retail, wholesale trade and warehousing also reporting payroll increases.

Job loss was observed in the local government sector, down 12,800, and state government also saw declines, down 1,100.

Federal government added 400 jobs, leisure and hospitality jobs added 2,000 and educational and health services added 1,200 jobs.