California's Unemployment Rate Unchanged at 12.4 Percent

SACRAMENTO - California's unemployment rate was 12.4 percent in December, and nonfarm payroll jobs decreased by 38,800 during the month, according to data released today by the California Employment Development Department (EDD) from two separate surveys.

The U.S. unemployment rate also was unchanged in December, remaining at 10.0 percent.

In November, the state's unemployment rate was a revised 12.4 percent, and in December 2008, the unemployment rate was 8.7 percent. The unemployment rate is derived from a federal survey of 5,500 California households.

Nonfarm jobs in California totaled 14,148,000 in December, a decrease of 38,800 over the month, according to a survey of businesses that is larger and less variable statistically. The survey of 42,000 California businesses measures jobs in the economy. The year-over-year change (December 2008 to December 2009) shows a decrease of 579,400 jobs (down 3.9 percent).

EMPLOYMENT AND UNEMPLOYMENT IN CALIFORNIA

The federal survey of households, done with a smaller sample than the survey of employers, shows a decrease in the number of employed people. It estimates the number of Californians holding jobs in December was 15,978,000, a decrease of 88,000 from November, and down 973,000 from the employment total in December of last year.

The number of people unemployed in California was 2,254,000 ?down by 19,000 over the month, but up by 648,000 compared with December of last year.

PAYROLL EMPLOYMENT DETAIL (SEASONALLY ADJUSTED)

EDD's report on payroll employment (wage and salary jobs) in the nonfarm industries of California totaled 14,148,000 in December, a net loss of 38,800 jobs since the November survey. This followed a loss of 17,600 jobs (as revised) in November.

Three categories (information; financial activities; and educational and health services) added jobs over the month, gaining 10,600 jobs. Educational and health services posted the largest increase over the month, adding 7,500 jobs. Eight categories (mining and logging; construction; manufacturing; trade, transportation and utilities; professional and business services; leisure and hospitality; other services; and government) reported job declines this month, down 49,400 jobs. Trade, transportation and utilities posted the largest decline over the month, down by 15,300 jobs.

In a year-over-year comparison (December 2008 to December 2009), nonfarm payroll
employment in California decreased by 579,400 jobs (down 3.9 percent).

One industry division, educational and health services, posted job gains over the year,
adding 22,800 jobs (a 1.3 percent increase).

Ten categories (mining and logging; construction; manufacturing; trade, transportation and utilities; information; financial activities; professional and business services; leisure and hospitality; other services; and government) posted job declines over the year, down 602,200 jobs. Trade, transportation and utilities employment showed the largest decline on a numerical basis, down by 127,100 jobs (a decline of 4.6 percent). Construction posted the largest decline on a percentage basis, down by 16.1 percent (a decrease of 116,100 jobs).


UNEMPLOYMENT INSURANCE CLAIMS (NOT SEASONALLY ADJUSTED)

In related data, the EDD reported that there were 792,764 people receiving regular unemployment insurance benefits during the December survey week. This compares with 781,449 last month and 655,445 last year. At the same time, new claims for unemployment insurance were 80,873 in December 2009, compared with 84,738 in November and 87,979 in December of last year.