e-EDGE is now available as an RSS feed. [Click here to subscribe to it.]The Bureau of Labor Statistics released its latest U.S. Labor Market Report on Friday, covering the U.S. employment situation in September, and the news was not good. Total nonfarm employment fell by -159,000 jobs in September. This was worse than the August drop-off of -73,000 jobs and the biggest monthly decline since March 2003.
Government payrolls increased by +9,000 employees last month; so private-sector payrolls plunged by -168,000 jobs, the tenth consecutive monthly decline. Only two of the ten major industry groups reported higher job counts in September. The “plus” sectors were education & health services (up by +25,000 jobs over the month) and “other services” (with an increase of +6,000 jobs). In addition, higher job counts were reported by mining (which includes oil & gas drilling, +8,200 jobs). The biggest payroll declines were reported by manufacturing (-51,000 jobs), retail trade (-40,000 jobs, partly reflecting the loss of -21,000 positions at department stores and auto dealers), and construction (down by -35,000 jobs over the month).
Compared with 12 months ago, nonfarm employers in the U.S. have reduced payrolls by -519,000 workers, a decrease of -0.4%. However, private-sector employment was down much more, dropping by -834,000 jobs or -0.7% over the year. Only a few private-sector industry groups reported higher payrolls compared with September 2007. The big job gainer was education & health services (+568,000 jobs). Employment also increased over the year in leisure & hospitality (+76,000 jobs), mining (+71,100 jobs) and “other business & professional services” (excluding temporary help, +67,000 jobs).
On the downside, the construction and manufacturing sectors continued to bleed, with job counts plunging by -464,000 jobs and -442,000 jobs respectively compared to September 2007. In manufacturing, over 60% of the total job losses came in just four sectors: motor vehicles & parts (-140,000 jobs and counting), wood products (-50,000 jobs), furniture manufacturing (-47,000 jobs), and textiles & apparel (-38,000 jobs).
Conditions didn’t change significantly in the separate BLS survey of households. The U.S. unemployment rate was 6.1% in September, the same as in August but well up from the 4.7% rate of September 2007, for an increase of 1.4 percentage points over the past 12 months. Among the major demographic groups, the jobless rates for adult men and women rose by +1.8 percentage points and +0.8 percentage points respectively over the year, while the rate for teenagers jumped up by +3.1 percentage points. Over the same period, the unemployment rate for Asians and whites increased by +0.6 percentage points and +1.2 percentage points respectively, while joblessness among blacks was up by +3.2 percentage points. The rate of unemployment among Hispanic workers has risen by +2.1 percentage points over the year.
Labor market conditions deteriorated significantly in September, and the cumulative damage is growing. Since the December, 2007 peak, private employers have let go a total of -979,000 workers (a cumulative decline of -0.8%). While 3/4s of the losses were in manufacturing and construction, job counts are falling in most sectors of private industry. The nation’s unemployment rate hit bottom in March, 2007 at 4.4%, when 6.7 million were jobless. By last month, the number of workers without a job had grown to nearly 9.5 million, an increase of 2.7 million. Sad tidings indeed.
(Nancy D. Sidhu)
The Bureau of Economic Analysis (BEA) recently released the 2006 Gross Domestic Product (GDP) by metropolitan area in the United States report. Though somewhat dated, these figures are useful in determining the size and growth of a particular metropolitan area compared with other areas across the nation. The BEA report also dissects the major industries’ contribution to the local economy.
The top ten metropolitan statistical areas (MSAs) in 2006, as measured by real GDP in millions of chained (2001) dollars, are listed below. The top five areas accounted for 23% of U.S. GDP.
The report also showed that growth was strongest in the Southwest and Far West regions of the U.S. during 2006, particularly in Texas, Arizona, and Oregon (where most of its growth came from the computer and electronic products manufacturing industry). Strong growth in financial industries, specifically real estate and securities, commodity contracts, and investments, accounted for 39% of U.S. metropolitan growth. Of course, 2006 was a pre-credit crunch year.
Within the Southern California region, the Los Angeles MSA (which includes Orange County) posted the strongest GDP growth from 2005 to 2006, at 4.4%; followed by Riverside-San Bernardino MSA with 4.1%; San Diego MSA with 3.3%; Ventura MSA with 2.4%; and Santa Barbara MSA with a 1.1% growth.
The financial industry was the biggest industry contributor to the Los Angeles MSA GDP growth during 2006, with a 26.3% share of which 70.0% was from the real estate-related industries. The second largest industry contributor was trade (wholesale and retail) with a 13.8% share, followed close behind by professional and business services with a 13.0% share. Manufacturing came in fourth with a 10.8% share. Los Angeles County is still number one in manufacturing in the nation in terms of the value of output. The information industry (software publishing, motion picture/TV production, telecommunication services, internet, and data processing) contributed 8.9% to the local GDP during 2006. (Candice Flor Hynek)
PR: http://bea.gov/newsreleases/regional/gdp_metro/gdp_metro_newsrelease.htm
The 2007 American Community Survey contains informative economic information by county. We compared six Southern California counties, using economic information for the state of California as reference. These counties are LA County, Orange County, San Diego County, Riverside County, San Bernardino County, and Ventura County.
Los Angeles County had the highest percentage of females in the labor force at 44.6% (the same percentage as the state of California) and shared the largest concentration of self employed (9 %) with Ventura County. Los Angeles also had the second highest percentage of commuters; 91% of workers in the labor force in LA County commute to their workplace. Of these commuters, 7% use public transit, the highest utilization of public transportation of the six Southern California counties. The lowest median incomes for families and for full-time male workers were found in LA County at $60,264 and $38,890 respectively. In addition, Los Angeles County had the highest share of families falling the below poverty level in the categories of total number of families (11.7%) and married families (7%). The county ranked second behind Riverside County for female head of household (no husband present) families operating below poverty level, with 25%. In LA County, 4.6% of all families earned under $10,000 and 6.6% of all families earned over $200,000.
Orange County had the largest percentage of population ages 16 and over in their labor force, a 67% participation rate. The O.C. had the highest percentage of commuters, 92%. About 77% of the work force were employed by private enterprise (the highest), and 10% were employed in the government sector (the lowest). Orange County had the highest median and mean incomes for families and non families (see charts), and the highest median income for full-time female workers ($42,837). Due to these high figures, it was not surprising that Orange County had the highest number of families earning $200,000 or more (at 11%), with only 2.3% of families earning below $10,000. Orange County had the lowest poverty percentages of the six counties, for all families (6%), married families (4%), and people under the age of 18 (12%) living below poverty level.
Riverside County had the lowest percentage of the population, ages 16 and over, in the labor force with a 63% participation rate. Approximately 89% of the work force from this county commutes. Riverside boasts the lowest percentage of commuters who walk to work, only 1.2%. Riverside County has the highest percentage of poor families with female head of household (no husband present) living below the poverty level, 26.5%. In Riverside County, 3.7% of all families earned less than $10,000 and 4.7% of all families earned over $200,000.
San Bernardino County had the largest percentage of its labor force employed in government (15%) and the lowest percentage of self-employed (6.4%). The county had the lowest percentage of total commuters (88.7%) of the six counties, and of people who work from home (4%). The lowest mean family income ($74,108) was found here along with the lowest per capita family income ($21,608). San Bernardino had the lowest median income for full-time female workers at $34,454. In San Bernardino County, 3.8% of families earn less than $10,000 and 3.3% (the lowest) earned in excess of $200,000.
Ventura County had the lowest percentage of females in their labor force, only 44%. The county had the highest percentage of their labor force reporting as self employed (9%), and the highest median income for full-time male workers at $51,492. Ventura County had the lowest number of commuters who use public transit, only 1%. The county also enjoyed the lowest percentage of poor families, below the poverty level with 6% living below, and the female head of household (no husband present) families level at 13.6%. Ventura had the lowest percentage of all people living below the poverty level (8.5%). In Ventura County, only 2.2% of families earned less than $10,000, the lowest of all six Southern California counties, while 9.1% earned over $200,000.
San Diego County reported the lowest percentage of the labor force being private wage and salary workers (68%). The county reported the highest concentration of commuters who walked and of those who worked from home, 3% and 6% respectively. This southern county had the lowest percentage of people ages 65 and over living below the poverty level at 7%. In San Diego County, 2.2% of families earn less than $10,000 and 9% of families earn over $200,000. (Shannon Sedgwick)
PR: www.census.gov
| Area | Population 16+ years | In Labor Force | Not in Labor Force | Females in Labor Force | Private Wage & Salary | Government Workers | Self-employed (no Inc.) | Unpaid Family Workers |
| California | 28,275,226 | 18,194,694 | 10,080,532 | 8,116,104 | 12,936,108 | 2,384,381 | 1,502,353 | 36,846 |
| LA County | 7,605,050 | 4,877,229 | 2,727,821 | 2,174,167 | 3,575,070 | 537,923 | 445,016 | 8,434 |
| Orange County | 2,317,920 | 1,549,410 | 768,510 | 678,313 | 1,188,729 | 157,053 | 120,734 | 3,879 |
| San Diego County | 2,319,273 | 1,529,368 | 789,905 | 670,014 | 1,033,414 | 211,547 | 122,559 | 2,534 |
| Riverside County | 1,557,958 | 982,758 | 575,200 | 435,746 | 690,486 | 130,904 | 78,903 | 1,835 |
| San Bernardino County | 1,482,166 | 952,653 | 529,513 | 419,430 | 654,166 | 145,852 | 61,056 | 2,035 |
| Ventura County | 617,341 | 410,510 | 206,831 | 179,362 | 293,915 | 51,914 | 37,214 | 1,424 |
| Area | Comuted to Work | By Public Transit | By Walking | Worked at Home |
| California | 16,421,576 | 841,919 | 462,555 | 787,343 |
| LA County | 4,423,707 | 318,935 | 129,208 | 189,537 |
| Orange County | 1,430,251 | 38,000 | 25,346 | 70,629 |
| San Diego County | 1,396,627 | 50,429 | 40,122 | 86,625 |
| Riverside County | 872,667 | 10,992 | 10,896 | 44,424 |
| San Bernardino County | 844,716 | 12,292 | 18,963 | 34,340 |
| Ventura County | 375,552 | 3,669 | 6,759 | 18,148 |
| Area | Families Earning Under $10,000 | Families Earning Over $200,000 | Median Family Income | Mean Family Income | Family Per Capita Income | Median Non-family Income | Mean Non family Income | Median Full-time Male Income | Median Full-time Female Income |
| California | 313,676 | 627,537 | $67,484 | $91,156 | $28,678 | $40,382 | $57,610 | $46,404 | $38,903 |
| LA County | 98,203 | 140,922 | $60,264 | $85,308 | $26,539 | $38,890 | $58,598 | $38,932 | $35,383 |
| Orange County | 15,873 | 77,369 | $83,015 | $110,576 | $33,794 | $48,161 | $66,391 | $51,467 | $42,837 |
| San Diego County | 22,302 | 51,458 | $71,823 | $92,846 | $30,080 | $41,698 | $57,913 | $47,955 | $38,680 |
| Riverside County | 17,649 | 22,550 | $64,572 | $82,049 | $24,885 | $35,319 | $52,060 | $45,424 | $35,033 |
| San Bernardino County | 17,123 | 14,903 | $61,702 | $74,108 | $21,608 | $35,169 | $46,800 | $42,015 | $34,454 |
| Ventura County | 4,147 | 17,385 | $80,793 | $102,037 | $31,013 | $42,659 | $59,848 | $51,492 | $40,645 |
The French economy decreased by -0.3% in the second quarter of 2008 from the previous quarter. French GDP had grown by +0.4% in the first quarter of 2008 and the fourth quarter of 2007. The last time France experienced negative quarterly GDP growth was in the fourth quarter of 2002 (-0.1% drop from the previous quarter).
Domestic consumption was the largest contributor to the decrease in economic growth in the second quarter (reducing GDP growth by -0.5 percentage points) followed by net exports (-0.4 percentage points) and investment by non-financial enterprises (-0.3 percentage points). Growth in business inventories was the largest positive contributor to the French economy during the quarter.
The news of the French GDP performance in the second quarter on Friday came before an emergency meeting this past weekend between the leaders of France, Germany, Italy, and the United Kingdom as well as top officials of the European Commission and the European Central Bank to discuss possible solutions. The leaders discussed new banking rules designed to reduce risky lending practices; however, the meeting did not produce a plan for a European Union-wide financial bailout. European central banks and banking regulators have acted vigorously to support European banks and insurance groups affected by the drying up of liquidity in international financial markets. The governments of Austria, Denmark, Germany, Greece, and Ireland moved to guarantee bank deposits in their countries in recent days.
(Eduardo J. Martinez)
PR: http://www.insee.fr/en/themes/indicateur.asp?id=28&type=1
The total number of housing permits issued in California declined by 57.0% (SAAR) to just 53,400 units in August 2008 – the lowest pace on record, according to the Construction Industry Research Board. Single-family home permits were down to 26,800 units, a decline of 20.2% from the previous month, and down by 54.4% from August 2007, also the lowest pace on record. Multi-family home permits were down to 26,600 units, a decline of 8.3% from July, and down by 59.3% from the same period a year ago. The August figure was the lowest for multi-family permits since March 2008 (20,100 units).
In Los Angeles County, the total number of permits declined significantly, falling by 40.5% compared to August 2007, with only 1,085 units permitted. The eight-month total housing permits (9,284 units) for the County trailed last year’s comparable period by 37.2%. Orange County also had a big drop in August over the year, with only 74 total units permitted, a sharp decline of 94.3%. Most of the decline was in multi-family housing units with only 5 permits issued compared to 1,186 in August 2007. Orange County’s eight-month total permit count was 53.4% behind last year’s.
The number of housing units permitted in the Riverside-San Bernardino area declined by 79.8% over the year with just 485 units permitted in August. Meanwhile, the area's eight-month total was off by 59.1% from the comparable period in 2007. The August total permit count in Ventura County fell to 22, a decline of 63.9% from August 2007, while the eight-month total lagged by 51.5% from the same period in 2007. In the only good news, total housing permits issued increased in San Diego County, rising by +49.0% over the year to August. The increase came from multi-family units. The County's eight-month total permit count trailed last year’s by 23.4%.
In the Bay Area, total new homebuilding permits declined in August, and the year-to-date numbers continued to lag last year’s figures. The total housing permit count in the Oakland metro area during the first eight months was 2,576 units, a decline of 45.9% from the comparable period in 2007. The San Jose metro area residential permit count fell as well, down by 41.5% (year-to-date) to 2,179 units. On the upside, the San Francisco metro area’s eight-month total housing unit permits issued were ahead of the comparable year in 2007, rising by +4.7% to 2,939 units permitted (mostly multi-family units). (Candice Flor Hynek)
California total nonresidential construction activity continued to slide in August with permit values declining by -29.7% to $1.6 billion (year-over-year), according to the Construction Industry Research Board. During the first eight months of 2008, nonresidential permit values totaled $14.1 billion – a decline of -6.1% from the comparable period in 2007.
Total nonresidential construction activity in Southern California was mixed. In Los Angeles County through August, permit values were up by almost $450 million, a +15.6% increase from the comparable period in 2007. Industrial buildings were up by +29.1%, while retail was +15.1% ahead. Also, permits valued at $253.7 million were issued for hotels in the County, compared with $88.5 million last year. However, office permit values in the County declined, falling by 8.1% over the year.
In Orange County through August, total nonresidential building construction permits fell by -30.0% from the same period in 2007. All of the major sectors were down considerably: industrial (-72.0%); office (-49.5%); retail (-61.6%); and hotels (-76.5%). Riverside County’s results were also depressing, with total nonresidential building permit values down by -22.1% over the year. By type, the declines were: industrial (-62.3%); office (-17.2%); and retail (-23.3%). San Bernardino County took a beating as well, with total nonresidential building permit values off by -41.0%: industrial (-58.1%); office (-72.8%); retail (-25.1%); and hotel (-63.8%).
The results for San Diego County through August were mixed. Total nonresidential building permit values declined by -16.2% from the comparable period in 2007. Permit values for industrial were down by -18.1% while office was off by -36.4%. On the upside, retail was up by +3.2% over the same period in 2007, and hotels were up by +148.9%. Ventura County’s numbers were also mixed. Total nonresidential building permit values were off by -9.1%. By type, both industrial and office permits declined considerably, falling by -64.3% and by -44.4% respectively. However, retail was doing well, with permit values up by +56.5% over the 2007 period. No hotel construction so far this year in Ventura County.
In the nine-county Bay Area through August, activity was mixed. Total nonresidential building permit values rose by +4.1% from the same period in 2007. By type, industrial buildings were up by +56.1% (strength in Contra Costa and Solano counties); office buildings were up by +21.4% (strength in Sonoma and San Francisco counties). On the downside, retail building permits declined by -2.7% and hotels were off by -70.3%. (Candice Flor Hynek)
We are nearing the end of Hispanic Heritage Month, a month dedicated to the observance of the culture and traditions of Latin America. This observance spans from September 15th to October 15th of each year, and has been taking place since 1988. September 15th was chosen as the beginning of this observance, because it shares the independence day of five Latin American countries: Costa Rica, El Salvador, Guatemala, Honduras & Nicaragua. Mexico’s Independence Day is Sept 16th and Chile’s Independence Day is September 18th. The Hispanic population has a huge impact on the U.S. (especially in California). Here are just a few statistics about the Hispanic population here in the United States, California, and in LA County.
As of July 1st, 2007, the estimated Hispanic population in the US was 45.5 million, making them the nation’s largest minority. One of every two people added to the nation’s population between 2006 and 2007 was Hispanic. Some 1.4 million Hispanics were added to the population during that same 2006-2007 interval, making them the fastest growing minority at 3.3%. The Hispanic population in the U.S. for 2050 is projected to be 132.8 million. At that point they are expected to make up 30% of the total population here in America. The U.S. is ranked second behind Mexico (in 2007) as having the largest Hispanic population worldwide. The U.S. Hispanic population totals 45.5 million, Mexico’s Hispanic population was 108.7 million and Spain was ranked third with 40.4 million. About 64% of Hispanic-origin people in the U.S. have a Mexican background, 9% are Puerto Rican and 3.4% are Cuban. The median age of the Hispanic population in 2007 was 27.6 years; the median age of the entire U.S. population was 36.6 years. There were 9.9 million Hispanic family households in the U.S. in 2006; 62% of these had children under the age of 18. Hispanics comprised 24% of the total U.S. population under the age of 5 as of July 1, 2007. There are 34 million U.S. residents ages 5 and older who speak Spanish at home, 12% of all U.S. residents are Spanish speakers.
48% of the Hispanic population resided in California and Texas. California is home to 13.2 million and Texas is home to 8.6 million. They make up more than a third of the population in each state, both at 36%. New Mexico has the highest concentration of Hispanic-origins in their population at 44%. Los Angeles County has the largest Hispanic population of any county in the nation at 4.7 million. Hispanics are the largest minority group in 20 of the U.S. states.
In 2002 there were 1.6 million businesses owned by Hispanics in the U.S. That same year they pulled in revenues of $222 billion. Of these firms, 29,168 had receipts totaling $1 million or more. The counties with the most Hispanic owned firms were: LA County with 188,422; Miami-Dade County with 163,187; and Harris County, Texas with 61,934 firms. There are 82,500 Hispanic chief executives in the U.S.; 46,200 physicians and surgeons; 53,600 postsecondary teachers; 43,000 lawyers; and 5,700 news analysts, reporters and correspondents.
The poverty rate among Hispanics increased to 21.5% in 2007 from the 2006 level of 20.6%. The median income of Hispanic households totaled $38,679. In 2007, 32.1% of Hispanics were without health insurance; this was a decrease from the 34.1% who lacked such coverage in 2006.
Of the Hispanic population in the U.S. (ages 25 and older), 60% attained a high school diploma, and 13% held a bachelor’s degree or higher. 3.3 million Hispanics held at least a bachelor’s degree in 2007, up by 1.6 million from a decade earlier. Educational levels differ between different Hispanic groups. 75% of all Cubans were high school graduates, and 26% held a bachelor’s degree or higher. In 2007, a total of 811,000 Hispanics held an advanced degree. Hispanic students made up 19% of elementary and high school student combined, and 11% of all college students as of October 2006.
A total of 7.6 million Hispanic citizens voted in the 2004 presidential election, 47% of the total number. The number of voters was about the same as in the previous election four years earlier. There were 1.1 million Hispanic veterans of the U.S. military as of 2006. (Shannon Sedgwick)
Thursday, October 2: British American Business Council Los Angeles: Breakfast with Sir Nigel Sheinwald, KCMG, British Ambassador to the United States
Sir Nigel Sheinwald, KCMG took up his appointment as British Ambassador to the United States in October 2007. For the previous four years he served as Foreign Policy and Defence Adviser to the Prime Minister and Head of the Cabinet Office Defence and Overseas Secretariat. He joined the Diplomatic Service in 1976 and has served in Brussels (including as UK Ambassador and Permanent Representative to the European Union in Brussels from 2000-2003), Washington, Moscow, Japan, Zimbabwe and in a wide range of policy jobs in London.
October 20-24: Los Angeles County Technology Week
L.A. Tech Week events are designed to inform those with an interest in technology - businesses that develop technologies and businesses that employ technologies, developers, entrepreneurs, investors, venture capitalists, teachers and students - about the state of the technology landscape in Los Angeles County.
Wednesday, October 22: WTCA L.A. - Long Beach and Asia Society of Southern California presents: "China: After the Olympics"
An in-depth look at China's current economic and political environment and its opportunities ahead with Stephen Joske, Director of Country Analysis, China Forecasting Service, Economist Intelligence Unit; and Donald H. Straszheim, Vice Chairman, Roth Capital Partners, LLC.
Tickets Now Available! Monday, November 17: The LAEDC 13th Annual Eddy Awards®
The Eddy Awards® is a cocktail, dinner, and awards gala to support fulfillment of the LAEDC mission to attract, retain, and grow businesses and jobs for the regions of Los Angeles County. The Awards were introduced by the LAEDC in 1996 to celebrate individuals, organizations, and now cities that demonstrate exceptional contributions to positive economic development in the region. Honorees: The Walt Disney Company, and Rick Caruso, developer of The Grove and the Americana.
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