CSER Economy Watch August 2012
Economy Watch is a monthly publication examining various economic growth indicators and other factors in the Region. This publication presents a snapshot of current economic conditions in the Sacramento Region and provides comparisons with other selected regions of California and the United States.
The Sacramento Region grew at the same rate as the state
Job growth in the six-county Sacramento Region caught up to the statewide average and surpassed the national average in July 2012. Preliminary data show that the number of jobs on payrolls of establishments in the Region increased by 2.6 percent between July 2011 and 2012. This equates to a gain of 21,400 jobs. The last time Sacramento posted annual job growth above 2.0 percent was the summer of 2006. July marks the fourth straight month of positive job growth, suggesting that the Region’s recovery is finally taking hold. Sacramento’s largest sector, Government, shifted to positive job growth in July 2012 as a result of significant year-over-year gains in education activities, primarily at the K-12 level but also reflected in the higher education segments. Three of the Region’s other larger sectors continued to experience positive job growth including Professional & Business Services; Educational & Health Services; and Trade, Transportation, & Utilities. It will be important to monitor behavior in the latter two sectors moving forward considering the emerging slowing job growth patterns. Performance in Sacramento’s other large sector, Leisure & Hospitality, has been somewhat erratic in the past few years—the sector dropped back into negative territory in July 2012 with annual declines in arts, entertainment, and recreation activities.
California posted 2.6 percent annual job growth in July 2012 with the addition of over 362,000 payroll jobs. After a short period of stagnant performance, the state’s job growth is showing an upward pattern once again. The nation continued to see flat job growth at an annual rate of 1.4 percent (equating to a gain of more than 1.8 million jobs). Annual job growth in the SF Bay Area moved up again reaching 3.3 percent with an increase of about 91,000 jobs over the 12 months ending July 2012. Solano posted a similar rate of growth in this period, posting a year-over-year gain of 3,800 jobs. Stockton’s job growth accelerated to 6.3 percent in July 2012, adding roughly 11,000 jobs on payrolls in the past year. Stockton posted the second-highest rate of growth in the state in this time period, well above any of the state’s largest markets.
Annual Job Growth
Major Sector Annual Job Gains and Losses
Sacramento’s Government and Construction sectors added jobs
The Sacramento Region posted gains in both the private and public sectors between July 2011 and 2012. The Government sector experienced the greatest annual gains reflected primarily in local government education. Sacramento’s Construction sector also added jobs in the past 12 months with gains in both building and specialty trade activities. Professional & Business Services and Educational & Health Services also added a notable number of jobs in the Region in this period. Only four of the Region’s major sectors shed jobs in the past year with Manufacturing showing the most severe declines. Sacramento’s net increase of 21,400 jobs moved total Nonfarm employment to 849,500 in July 2012, still around year 2001 levels.
Statewide, 11 of the 12 major sectors added jobs in the 12 months ending July 2012 (including Government). The greatest gains were seen in the state’s Professional & Business Services sector. Manufacturing, an important high value sector, was the only category where the state lost jobs in the past year. None of the major sectors in the SF Bay Area shed jobs in the past 12 months with Professional & Business Services posting the largest job gains. Stockton also saw gains or stability in all of its major sectors—Trade Transportation, & Utilities topped the list of growing sectors. Solano also posted the greatest gains in Trade, Transportation, & Utilities, but saw losses in both Government and Manufacturing.
The Center for Strategic Economic Research (CSER) is an economic research and consulting group specializing in applied research and strategy development in the regional economics and economic development fields.
CSER is grateful for the support of the Signature Underwriter, UC Davis Health System, and Supporting Underwriters of the Economy Watch, DPR Construction, Grubb & Ellis Company. Los Rios Community College District, Sacramento Municipal Utility District, Sacramento Works and Wells Fargo.
Disclosure: This Story has been posted by Ryan Sharp, Director of the Center for Strategic Economic Research