Positive annual job growth in the six-county Sacramento Region slowed in April 2013. Preliminary data show that the number of jobs on payrolls increased by 1.0 percent in the April 2012 to 2013 period compared to 1.6 percent annual job growth in the past month.
The latest job growth equates to a gain of 9,000 jobs. The downturn in positive job growth was expected according to CSER’s Sacramento Region Business Forecast, but the rate of growth in April was slightly lower than anticipated. The Region’s April 2013 annual job growth also places it below the statewide and national averages as well as its neighboring region benchmarks.
Four of the Sacramento Region’s five largest sectors posted positive annual job growth in April 2013 with only the Government sector shedding jobs mostly within the local government component.
- Professional & Business Services experienced the most robust growth at 4.5 percent with continued strong performance in the temporary or job placement services component.
- Trade, Transportation, & Utilities posted relatively strong job growth of 3.1 percent with expansion of retail trade activities
- The Educational & Health Services sector, which grew by 2.1 percent, saw gains in both the private education and health care segments.
- The Region’s Leisure & Hospitality sector remained just within positive territory with 0.6 percent job growth due to increases in restaurants and bars.
California posted 2.1 percent annual job growth in April 2013, adding over 293,000 jobs to payrolls. This rate of growth was well above the national average of 1.6 percent, which equates to a nearly 2.1 million-job increase. Both the SF Bay Area and Solano markets outpaced the statewide average posting April 2013 job growth of 2.4 percent and 2.6 percent, respectively. The SF Bay Area posted a gain of more than 67,000 jobs in the past year while Solano added 3,100 jobs. The Stockton market placed between the statewide and national averages, growing by 1.9 percent between April 2012 and 2013. This reflects a gain of 3,600 jobs in the Stockton market over this period.
Annual Job Growth
Major Sector Annual Job Gains and Losses
The public sector pulled down the Region’s private sector gains
Five of the Sacramento Region’s eleven major sectors added jobs over the 12 months ending April 2013. The greatest gains were seen in three of its largest sectors–Professional & Business Services; Trade, Transportation, & Utilities; and Educational & Health Services. Combined, these three large sectors added 11,800 jobs to payrolls. Job gains were also seen in the Region’s Manufacturing and Leisure & Hospitality sectors.
The Region’s Government sector shed the most jobs in the past year while the Information and Construction sectors also saw notable job declines. Although dynamics in the Construction sector appear to be turning around, the sector remains somewhat volatile showing positive annual job growth in six of the last twelve months. Total Nonfarm employment in the Sacramento Region moved up to 867,000 with the net increase of 9,000 jobs in the past 12 months. This kept the Region at year 2002 employment levels.
Statewide, job gains were seen in eight of the eleven major sectors between April 2012 and 2013. The Professional & Business Services and Leisure & Hospitality sectors posted the largest gains while the Government sector experienced the most pronounced losses in the state. Similarly, the SF Bay Area lost jobs in only three sectors over the past 12 months (with Government showing the greatest decline) with Professional & Business Services topping the list of growth sectors. The Stockton market’s Trade, Transportation, & Utilities sector added the most jobs over the last year while Manufacturing posted the largest decline. In the Solano market, only the Government sector lost jobs in the past year. Solano’s Construction sector added the most jobs with activity picking up in the market.
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 Quarterly Report, Cushman & Wakefield, Los Rios Community College District, Sacramento Municipal Utility District, Sacramento Works, Weintraub Tobin and Wells Fargo.
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