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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.
Sacramento posted job growth between the state and nation
The six-county Sacramento Region saw job growth dip slightly in August 2012, but it remained positive and above the national average. Preliminary data demonstrate that establishments in the Region added 16,100 jobs to payrolls between August 2011 and 2012. In the previous month, Sacramento posted 2.5 percent job growth, which exceeded the statewide and national averages—with the slower rate of growth in August, the Region fell below the statewide average. It is encouraging to see five straight months of positive annual job growth following Sacramento’s lagging recovery. Four of the Region’s five largest sectors added jobs in the past 12 months including Professional & Business Services; Trade, Transportation, & Utilities; Educational & Health Services; and Government. The strongest growth was in Professional & Business Services with gains primarily in administrative support activities. The Government sector saw annual job growth drop off significantly in August 2012, but the sector stayed in positive territory with gains in K-12 education. The only larger sector in Sacramento to experience negative job growth in August 2012 was Leisure & Hospitality with losses weighted toward arts, entertainment, and recreation activities.
California experienced 2.2 percent job growth in August 2012 with an annual gain of nearly 306,000 jobs. This reflects a slightly higher rate of growth compared to the previous month. Nationally, job growth remained stagnant at 1.4 percent. Between August 2011 and 2012, the nation added approximately 1.8 million jobs to payrolls. The SF Bay Area posted 3.1 percent job growth in August 2012 (remaining above both the state and nation), adding almost 85,000 jobs in the past year. Stockton and Solano both saw a pronounced job growth decline in August 2012 similar to the Sacramento Region. Stockton’s job growth dropped from 6.4 percent to 5.0 percent with a 9,100-job gain. Despite this dip, Stockton saw the second-highest rate of growth in the state between August 2011 and 2012. Solano fell below the statewide average with job growth decreasing to 2.1 percent, equating to an annual increase of 2,500 jobs.
Annual Job Growth
(Image by: CSER)
Major Sector Annual Job Gains and Losses
(Image by: CSER)
Sacramento saw annual gains in both the public and private sectors
For the second month, the Sacramento Region saw job gains in both the public and private sectors. The Region’s Professional & Business Services; Construction; and Trade, Transportation, & Utilities sectors added the most jobs between August 2011 and 2012. The Construction sector remained among this group of sectors with gains across nearly every sub-sector in the last 12 months. Four sectors lost jobs on an annual basis in Sacramento including Leisure & Hospitality; Information; Other Services; and Manufacturing. The net annual increase moved the Region’s Nonfarm employment to a total of 849,100. While the employment pattern is starting to show a turnaround, the level remains close to those seen in the year 2001.
California posted annual job losses in only two major sectors, Government and Manufacturing. The state saw the greatest gains in the Professional & Business Services sector. The SF Bay Area experienced losses in the Government and Financial Activities sectors and, like the state, saw the largest job increases in Professional & Business Services. Stockton’s job losses were confined to the Other Services sector in the August 2011-2012 period with the most pronounced gains in the Trade, Transportation, & Utilities and Educational & Health Services sectors. Solano recorded annual losses in its Government and Manufacturing sectors while the Trade, Transportation, & Utilities sector added the most jobs.
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