e-EDGE is now available as an RSS feed. [Click here to subscribe to it.]The Bureau of Labor Statistics just released its latest U.S. Labor Market Report covering the U.S. employment situation in June. The overall message was mixed but not as disappointing as some headlines. The unemployment rate ticked down, which was nice. Nonfarm employment did decline in June, but mainly because the federal government fired -225,000 temporary Census workers.
Looking first at the employer survey, total nonfarm employment fell by -125,000 jobs in June, compared with revised gains of +433,000 jobs in May and +313,000 jobs in April. This was the first monthly loss after five consecutive monthly gains.
Government payrolls shrank by -208,000 workers in June, with federal job counts down by -198,000 jobs. State/local governments and school districts reduced headcounts by a combined -10,000 workers. Employment rolls in the private sector swelled by +83,000 workers last month, the sixth consecutive monthly increase following 24 dreary months of decline and first the six-month string of gains in three years.
Looking at the private industry details, seven of eleven major sectors reported higher payrolls in June. Professional & business services employment grew by +46,000 workers, partly due to an increase of +21,000 jobs at temporary help agencies. The leisure & hospitality sector reported an increase of +37,000 jobs. Private education & health care services employment rose by +22,000 jobs compared with May, while transportation & warehousing reported a gain of +14,600 jobs. Manufacturing payrolls were up for the fifth consecutive month, this time by +9,000 workers. Nominal gains also were recorded by "other services" (+2,000 jobs) and wholesale trade (+1,000 jobs). The four sectors reporting payroll declines over the month were: construction (-22,000 jobs); financial activities (-15,000 jobs), information (-8,000 jobs) and retail trade (-6,600 jobs).
The picture wasn't as rosy compared with June, 2009 (though the year-over comparisons were much less negative than in previous months). Nonfarm employers in the U.S. have reduced payrolls by -170,000 workers over the past year, a decrease of just -0.13%. Private-sector employment dropped by -375,000 jobs, or -0.35%, over this period. Three major private-sector industry sectors reported higher payrolls versus last year: education & health services (+354,000 jobs); professional & business services (+256,000 jobs, bolstered by temporary help agencies' hiring of +345,000 workers); and leisure & hospitality (+9,000 jobs). On the downside, the eight sectors shedding workers over the past year were led by construction (-447,000 jobs): financial activities (-158,000 jobs); manufacturing (-112,000 jobs); and retail trade (down by -110,000 jobs).
Aside from the education & health services, temporary help, and leisure & hospitality services sectors, employment has also increased over the year in 23 smaller industries. [Note: there were 16 smaller industries on this list in May and only 8 in April.] Industries in this group adding the most new jobs included: motor vehicles & parts (up by +54,800 jobs); mining & logging (+33,000 jobs); computer systems design services (+27,700 jobs); wholesale trade agents & brokers and electronic markets (+18,500 jobs); primary metals (+17,500 jobs); clothing & clothing accessories stores (+17,200 jobs); and plastics and rubber products (+15,800 jobs); and building material & garden supply stores (+11,600 jobs). The other 15 smaller industries added between +300 and +8,500 new jobs in June.
The separate BLS-sponsored survey of households suggested that labor market conditions in June were a bit better than earlier this year. The U.S. unemployment rate dropped to 9.5% last month, the lowest reading since July 2009 (when joblessness stood at 9.4%), and the same as the unemployment rate in June 2009.
Comparing the major demographic groups with June 2009, the jobless rate for adult men (at 9.9%) was down by -0.1 percentage point over the year. The unemployment rate for women rose by +0.2 percentage points over this period (to 7.8%), while the rate for teenagers jumped by +1.4 percentage points (to 25.7%). Over the past year, the jobless rates for whites and Asian workers decreased by -0.1 percentage points and -0.5 percentage points respectively. Joblessness among black workers increased by +0.6 percentage points, while the unemployment rate among Hispanics edged up by +0.1 percentage point.
Looking at all these details, it appears the labor market recovery continued in June, though results were complicated by the federal government's hiring--and firing--of workers for Census 2010. But government jobs were never going to be enough to generate a real recovery in the labor market. There are still 339,000 temporary Census workers on federal payrolls; so more government jobs will surely disappear in coming months.
To get a proper perspective on the real labor market recovery, focus instead on private-sector hiring. In the six months since employment bottomed last year, private payrolls have increased by +593,000 jobs, with +236,000 workers added in the first quarter of 2010 and +357,000 more in the second quarter. One might wish for bigger numbers, but these do represent real improvement. (Nancy D. Sidhu)
Source: http://www.bls.gov/news.release/pdf/empsit.pdf
Light vehicle sales increased over the year in June for the eighth consecutive month. Total light vehicle sales last month were 11.1 million (seasonally adjusted annual rate or SAAR), up by +14.3% from June 2009. Over the month, however, sales fell by a disappointing -4.8% compared with May.
Total car sales, including both foreign and domestic models rose by +9.6% last month from twelve months earlier (to 5.5 million SAAR). Sales of domestic autos increased by +13.7% (to 3.8 million SAAR), while foreign auto sales inched up by +1.4% (to 1.7 million SAAR). On a month over-basis, domestic sales declined by -4.6%, but sales of foreign nameplates rose by +5.2%.
Combined sales of foreign and domestic light trucks rose by +19.3% last month (to 5.6 million vehicles SAAR), but compared to May sales were down by -7.7%. Domestic models accounted for the bulk of last month’s light truck sales, rising by +22.3% (to 4.7 million SAAR) compared with sales of foreign models which posted a gain of +4.9% (to 0.8 million SAAR).
Sales of medium-heavy trucks were up by +9.8% (to 213,000 SAAR) compared to the same period last year, but were up over the month by +6.0%.
While vehicle sales last month were above their year ago level (which was one of the slowest in the last 30 years), the decline from May was a bit of a letdown. A large portion of May’s sales volume was due to increased demand from daily rental firms needing to renew their fleets – retail sales grew at a comparatively slower pace in May (38% vs. 12% YTD). Still, most industry observers feel light vehicle sales bottomed out in the first quarter of 2009 and are recovering at a modest (if irregular) rate. (Kimberly Ritter)
Source: www.bea.gov
May total passenger traffic and air cargo reports are in from Los Angeles International Airport (LAX), Ontario International Airport, Long Beach Airport, John Wayne/Orange County Airport and April figures are in for Burbank/Bob Hope Airport. LAX, Ontario, Long Beach and John Wayne/Orange County airports all reported higher levels of passenger traffic compared to a year ago, while only LAX reported higher air cargo tonnage. Burbank/Bob Hope Airport reported a lower level of passenger traffic in April while total air cargo increased compared to a year ago.
LAX total passenger counts (domestic and international) came in at 4.9 million passengers in May. Domestic passengers numbered 3.6 million and international passengers totaled 1.3 million. LAX experienced a rise of +6.6 percent in total passenger traffic compared to May 2009. Total air cargo tonnage jumped up by a significant +26.9 percent from May 2009 to May 2010.
Ontario International Airport’s passenger traffic figures were up slightly, edging up by +0.7 percent in May over the year. However, air cargo tonnage moved down slightly by -0.7 percent from May 2009.
Long Beach Airport registered a +3.2 percent climb in total passenger traffic in May compared to a year earlier. However, air cargo tonnage contracted by over -20% from May 2009.
John Wayne/Orange County Airport’s passenger traffic figures were basically the same as a year earlier, rising by just +0.04 percent in May. Meanwhile, air cargo tonnage decreased by -10.1 percent over the year.
Burbank/Bob Hope Airport passenger counts in April came in -7.9 percent lower than a year ago. However, air cargo tonnage recorded a +5.4 percent escalation from April 2009. (Ferdinando Guerra)
PR: http://www.lawa.org/welcomelax.aspx
http://www.lawa.org/welcomeONT.aspx
http://www.ocair.com/,http://www.longbeach.gov/airport/, http://www.burbankairport.com/
The U.S. Census Bureau recently released first quarter tax collections by state and type of tax. Total tax revenues collected across all fifty states (and Washington DC), increased by +2.5% to $165.7 billion in the first quarter of 2010 compared with $161.7 billion collected during the same period last year. The State of California collected $25.7 billion in taxes during the first quarter, or +15.6% more than the first quarter of 2009 ($22.2 billion).
Looking at the “big three” tax categories, the overall results were mostly better compared to a year ago. In California, general sales tax revenues were up by +15.4% to $8.5 billion. A year ago, the state collected $7.4 billion in general sales taxes. Compared with the rest of the nation, California was ahead of the game – nationwide, general sales tax revenues rose by just +0.4% to $54.7 billion from $54.5 billion last year.
The results for personal income taxes were even better. California personal income tax revenues were up by +23.0% during the first quarter. Californians paid $10.7 billion in state personal income taxes compared with $8.7 billion during the same period last year (Note: the California personal income tax rate increased by +0.25% effective 1/1/09). Across the nation, $53.5 billion of personal income tax revenue flowed into state coffers during the first quarter, an increase of +2.5% compared with the first quarter of 2009. Altogether, sales and personal income taxes made up about two thirds of state revenue. In California, the proportion was closer to three-quarters. In contrast, corporate taxes stumbled during the first quarter. Nationwide, U.S. corporate income tax revenues dipped by -0.5% to $8.7 billion while in California, corporate tax revenues remained unchanged at $2.2 billion during the first quarter.
The increases in general sales tax and personal income tax collections during the first quarter reflected improvements in employment and consumer spending compared with a year ago. This was good news for state treasuries – most of which have been devastated (along with their reserves) by the recession. State tax revenues tend to lag behind the vicissitudes of the economy. It takes time for collections to catch up with the ups and downs of retail sales and personal income. (Kimberly Ritter)
Source: http://www.census.gov/govs/www/qtax.html
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Wednesday, July 21, 2010: LAEDC 2010 Mid-year Economic Forecast
7:00 a.m. Breakfast & Networking. 8:00 a.m. - 10:30 a.m. Program. Los Angeles Marriott Downtown.
The LAEDC Mid-year Economic Forecast is the premier source for in-depth economic information and analysis on Los Angeles County and the surrounding areas. Jack Kyser, the Kyser Center for Economic Research Founding Economist, announced his retirement after nearly 30 years as the chief interpreter of the L.A. County economy. This Mid-year Forecast event will be his final official presentation. Jack will be joined by LAEDC Chief Economist Dr. Nancy Sidhu and Dr. Richard Green of the USC Lusk Center for Real Estate as they update the economic outlook for the housing industry, the 5-County Southern California region, California, and the nation in the second half of the program. Our other panel will discuss critical infrastructure improvement projects. L.A. County residents and government organizations have committed more than $50 billion in public dollars to upgrade our region’s infrastructure, but will that be enough money to meet our needs?
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