e-EDGE is now available as an RSS feed. [Click here to subscribe to it.]The California Labor Market Information Division just released its battery of state/local area employment reports for July, and the results were an interesting mixture of better and not-so-good news. The headline number looked bad: total nonfarm employment in California declined by -9,400 jobs between June and July, after falling by -24,000 jobs during the previous month. However, the federal government fired -23,100 people, mostly Census workers, in July after letting -23,400 employees go in June. The interesting news was that private-sector businesses statewide added +13,700 new employees last month, up from net hires of +4,500 workers in June. Both of these were modest increases, but the July figure is the highest for any month so far in 2010. [All figures in this and the next two paragraphs are seasonally adjusted.]
The details for California industries painted a mixed picture in July. Of fourteen major private-sector industries, seven added new employees, six reported lower payrolls, and one was even with June. The gainers were led by health care & social assistance, where employment rose by +8,100 jobs; other services (+5,900 jobs); and retail trade (+5,300 jobs). The largest losses were reported by administrative & support services (-2,800 jobs); wholesale trade (-2,500 jobs); and leisure & hospitality (-2,100 jobs). Employment in the state's financial activities sector was flat in July.
All five metropolitan areas in Southern California reported seasonally adjusted declines in total nonfarm employment over the month to July. Employment decreased by -2,400 workers in Los Angeles County. San Diego and Ventura counties both reported losses of -2,100 employees, while the Orange County total fell by -4,800 jobs. The Riverside-San Bernardino area reported the biggest losses, with total nonfarm employment dropping by -11,200 jobs over the month.
Industry details for metro areas are only available on a not seasonally adjusted basis. Below we take a rearward view of employment over the last twelve months, starting with Los Angeles County and then reviewing the other areas in descending order of year-to-year percentage change.
Nonfarm employment in Los Angeles County totaled 3.74 million workers in July, which was down by -0.6% over the year (or -23,500 jobs). Eight private-sector industries and the government sector reported employment losses over the past 12 months, while five industries recorded gains. The top three industry gainers were the information sector, which added +26,100 jobs (mostly in motion picture production, +21,800 jobs); followed at some distance by private education (+4,300 jobs); and leisure & hospitality (+2,200 jobs). The biggest private-sector job losses were reported by manufacturing, down by -14,500 jobs; construction (-10,700 jobs); and wholesale trade (-5,200 jobs). The government sector shrank by -15,300 jobs, mostly in local schools and city governments.
Nonfarm employment in Orange County totaled 1.36 million workers in July. This figure was up (repeat that-UP!) by +0.7% over the year (or +8,800 jobs), a signal the county is likely past the bottom of the recession in the labor market. Eight private-sector industries reported job gains over the past 12 months, while four sectors and the government sector recorded job losses. Employment in the county's transportation & warehousing industry was flat in July. The industries adding workers were led by: leisure & hospitality (+9,000 jobs); and retail trade (+4,400 jobs); followed by professional, scientific & technical services and administrative & support services, both up by +3,000 jobs. Construction lost the most workers, with payrolls falling by -7,100 jobs; the government sector decreased by -3,600 jobs; and the information sector dropped -2,300 jobs.
Nonfarm employment in San Diego County totaled 1.21 million workers in July, which was down by -0.3% over the year (or -3,100 jobs). Six private-sector industries reported employment gains over the past 12 months, while six industries and the government sector recorded losses. Employment in the professional, scientific & technical services industry was flat in July. The top three industry gains over the year were reported by: health care (+3,200 jobs); administrative & support services (+2,900 jobs); and wholesale trade (+900 jobs). Manufacturing lost the most workers, with payrolls falling by -3,300 jobs. Employment in financial activities was down by -2,400 jobs; while construction and retail trade payrolls both fell by -1,500 jobs.
Nonfarm employment in Ventura County totaled 266,700 workers in July, which was down by -1.1% over the year (or -3,100 jobs). Four private-sector industries reported employment gains over the past 12 months, while eight industries and the government sector recorded losses. The top three industry gains over the year were reported by: private education & health care services (+1,000 jobs); administrative & support services (+300 jobs); and other services (also +300 jobs). Leisure & hospitality and construction lost the most workers, with payrolls falling by -1,200 jobs in both industries; while retail trade employment declined by -700 jobs.
Nonfarm employment in the Riverside-San Bernardino area totaled 1.07 million workers in July, which was down by -2.1% over the year (or -22,800 jobs). Just three private-sector industries reported employment gains over the past 12 months, while ten industries and the government sector recorded losses. The three industry gains over the year were reported by: transportation & warehousing (+1,400 jobs); administrative & support services (+400 jobs); and private education (+100 jobs). Construction lost the most workers, with payrolls falling by -9,100 jobs; followed by the government sector, down by -4,400 jobs; and manufacturing, which fell by -2,700 jobs. (Nancy D. Sidhu)
Source: http://www.labormarketinfo.edd.ca.gov/?pageid=1003
Figures released last week by the California Employment Development Department (EDD) showed California’s July unemployment rate remained unchanged from June. The seasonally adjusted unemployment rate for July remained at 12.3 percent. On a year-to-year basis, the unemployment rate has increased by +0.5 percentage points.
The U.S. unemployment rate also remained unchanged in July at 9.5 percent. Thus, joblessness in California continued to be higher than the nation, the trend since September 2008. Only two other states have higher unemployment rates than California: Nevada (14.3%) and Michigan (13.1%). Out of the three, only Nevada saw its unemployment rate rise in July, which has been the case for the last two months.
Within the five-county Southern California area, all of the counties experienced increases in non-seasonally adjusted unemployment rates during July when compared to a year ago. In addition, all of the counties had double-digit unemployment rates in July with the exception of Orange County. The San Bernardino County unemployment rate increased from 14.0 percent a year earlier to 14.8 percent in July. Riverside County’s unemployment rate also rose on a year-to-year basis, moving from 14.6 percent to 15.3 percent in July. Los Angeles County’s July rate moved upward from 12.5 percent a year ago to 13.4 percent. Ventura County’s July rate increased from 10.8 percent a year earlier to 11.3 percent.
In Orange County, the unadjusted unemployment rate moved upward from 9.7 percent in July 2009 to 9.8 percent in July 2010. San Diego County’s rate rose from 10.3 percent to 10.8 percent over the past year. (Ferdinando Guerra)
Source: http://www.edd.ca.gov/About_EDD/pdf/urate201010.pdf
July marked the start of the 2010-2011 fiscal year for the State of California with little apparent progress in rectifying the State’s precarious cash position. Revenues last month were -$91 million below the Governor’s May revision estimates by $91 million. Total receipts ($4.8 billion) for the first month of the new fiscal year were up compared with last year, but fell far short of disbursements ($8.6 billion). The State’s cash balance stood at -$13.7 billion, a marked improvement compared with July 2009 when the cash balance was -$16.5 billion. The latest financial results released by the State Controller for the General Fund show that during the first month of FY2010-2011, total receipts increased by +1.5% compared with the previous year, while total disbursements fell by -8.2%.
On the revenue side, corporate tax receipts were down by -5.0% to $317.7 million (compared with FY2009-2010) while personal income taxes rose by +4.7% to $3.0 billion. Revenues from retail sales and use taxes increased by +4.0% to $1.1 billion. All together, revenues from the “big three” revenue sources increased by +3.8% compared with the same time last year.
Although total expenditures were down last month, spending for several expense categories increased compared with July 2010. Local K-12 Education received $3.0 billion, which was down by -45.9% from the previous year but Community Colleges saw spending increase by +6.8% to $707.5 million. Contributions to CALSTERS (the K-12 teachers’ pension fund) were up slightly – rising by +0.6% to $198.9 million.
Spending for the Department of Corrections also increased, bumping up by +6.0% to $649.6 million. Outlays for Health and Human Services jumped by +50.2% to $227.7 million. Payments to General Government more than doubled ($206.2 million last month compared with $99.4 million at this time last year), and Legislative/Judicial/Executive rose by +39.3% to $127.3 million.
As of July 31, the State had $19.7 billion in borrowable resources against $13.7 billion in outstanding loans, which left $6.0 billion in unused borrowable resources. The outstanding loan balance is being covered entirely by internal borrowing and is comprised of $9.9 billion carried over from the previous fiscal year plus the current year increase of $3.8 billion.
In a statement issued with last month’s Statement of General Fund Cash Receipts and Disbursements, the State Controller noted that an October education deferral (enacted by the legislature) could be moved forward to September if necessary to maintain the State’s cash flow. If this were to be done, the Controller estimates the State will maintain a safe level of cash through October. Furthermore, without the passage of a balanced budget, the Controller raised the possibility of another round of IOUs starting late August or early September. (Kimberly Ritter)
Source: http://www.sco.ca.gov/eo_pressrel.html
Home sales in Southern California (houses, townhomes and condominiums) fell last month to 18,946 units (new and resale homes), plummeting by -21.4% compared with July 2009. This was biggest year-over-year drop in home sales in over two years. On a month-over basis, July sales were down by -20.6%. Last month was the slowest pace of sales since July 2007, when 17,867 homes were sold, and the second-slowest since July 1995 when 16,225 homes were sold.
The average median price in the six-county region increased by +10.1% (to $295,000) over the year, but was down (by -1.7%) compared with June. Median home prices have now increased on a year-over basis for eight consecutive months.
Riverside and San Bernardino counties posted the largest percentage increases in median price, with prices rising by +8.1% (to $200,000) and +10.7% ($155,000) respectively. However, the Inland Empire also experienced the steepest declines in sales volume. The number of transactions tumbled by -24.9% in Riverside County and by -28.0% in San Bernardino County. Elsewhere in Southern California, the numbers were not much better. In July, the median price in Los Angeles County increased by +5.6% to $339,000, but sales plunged by -19.4%. Orange County saw its median home price rise by +7.1% to $450,000 while sales retreated by -19.2%. In San Diego County, the median price rose by +5.6% to $338,000 even though sales fell by -19.4%. Last month, Ventura County had the distinction of losing ground in both sales volume (-10.5%) and median price (dropping by -1.3% to $370,000).
Foreclosure sales accounted for 34.2% of the resale market last month. This was down from 43.4% a year ago, but up from 32.8% in June. Sales of homes priced at $500,000 or more represented 21.9% of July’s sales volume – up from 19.2% at this time last year and up from 21.6% in June. “Jumbo” loans (those above the old conforming limit of $417,000) were a little bit easier to obtain last month. In July, they accounted for 18.4% of purchase lending, which was up from 15.2% in July 2009 and 17.6% in June. Prior to the credit crisis in 2007, jumbo loans accounted for 40% of the market.
Last month’s drop in sales volume was a setback for Southern California’s housing recovery, but was not wholly unexpected. The market lost momentum after the federal tax credit incentive expired and, taken together with continuing news about the unsteady economic recovery and high unemployment, many prospective buyers have adopted a wait-and-see attitude. (Kimberly Ritter)
|
Sales Volume |
Median Price |
||||
County |
July 2009 |
July 2010 |
%Change |
July 2009 |
July 2010 |
%Change |
Los Angeles |
8,082 |
6,515 |
-19.4% |
$321,000 |
$339,000 |
5.6% |
Orange |
3,128 |
2,527 |
-19.2% |
$420,000 |
$450,000 |
7.1% |
Riverside |
4,699 |
3,529 |
-24.9% |
$185,000 |
$200,000 |
8.1% |
San Bernardino |
3,549 |
2,556 |
-28.0% |
$140,000 |
$155,000 |
10.7% |
San Diego |
3,809 |
3,070 |
-19.4% |
$320,000 |
$338,000 |
5.6% |
Ventura |
837 |
749 |
-10.5% |
$375,000 |
$370,000 |
-1.3% |
Southern California |
24,104 |
18,946 |
-21.4% |
$268,000 |
$295,000 |
10.1% |
Source: Data Quick News
Source: http://www.dqnews.com/
The Airports Council International last week published its list of the world’s busiest airports for 2009. The top five airports in the world based on passenger traffic were Atlanta, London, Beijing, Chicago, and Tokyo. Atlanta remained the busiest airport in the world, while London moved up from the third position into the second position. Beijing experienced the most significant increase in passenger traffic propelling it into the third spot from number eight. Los Angeles International Airport (LAX) moved downward in the rankings from sixth to seventh. Guangzhou, China moved into the top 30 for the first time, coming in at number 23. China now has three airports in the top 30 based on passenger traffic.
On the cargo side, the top world airports in 2009 were Memphis, Hong Kong, Shanghai, Inchon (South Korea), and Paris. Anchorage, Alaska fell from the #5 spot to the #6 ranking in 2009. LAX remained at number thirteen in the rankings. China added a fifth airport to the world’s top 30 cargo airports. These now include Hong Kong, Shanghai, Beijing, Guangzhou, and Shenzhen. (Ferdinando Guerra)
Japan and China: The Cabinet’s Office of the Japanese government announced last week that Japan’s GDP in the second quarter grew by +0.1% on a quarter-to-quarter basis. This translates into a seasonally adjusted annualized rate of +0.4%. This performance was significantly lower than expected. The government is very concerned about the issue and is currently debating whether or not to unveil another stimulus package to avoid a double-dip recession.
The other big news this week was that in the second quarter the Chinese economy surpassed the Japanese economy to become the world’s second largest. This was expected as Japan’s economy has grown very slowly for more than ten years while China’s economy has been growing by double-digits. The financial and economic crisis played a key role in the timing of this historical event, as Japan’s economy was severely impacted by the crisis last year.
Taiwan: Taiwan’s Statistics Bureau announced last week that (the Los Angeles Customs District’s #4 trading partner) Taiwan’s GDP expanded by +12.5% in the second quarter compared with a year earlier. More than 50% of Taiwan’s GDP is related to exports, and they have been surging this year. Taiwan’s largest trading partner is China, which accounts for more than 40% of the island nation’s exports. Exports to China climbed by nearly +40% in July when compared to last year. (Ferdinando Guerra)
The U.S. Producer Price Index (PPI) rose slightly in July, but the details were mixed. Prices in the index for finished goods rose by +0.2% after falling by -0.5% during the previous month. Prices of core finished goods (less food and energy) increased by +0.3% after edging up by +0.1% in June. From July 2009 to July 2010, finished goods prices increased by +4.2%. In June, the year-over increase was +2.8%.
In the early stages of production, prices of intermediate goods fell by -0.4% in July after declining by -0.9% in June. Prices quoted by producers of intermediate goods have increased by +6.4% since July 2009. Prices in the crude goods index advanced by +2.7% in July after declining by -2.4% the previous month. Over the year, the crude index climbed by +20.5%.
In the finished goods category, the index for energy goods moved down by -0.9% last month, its fourth consecutive decline. Almost 90% of the July decline was attributable to a -2.2% drop in gasoline prices. Finished food prices were up by +0.7% in July after declining in each of the three previous months. Contributing to the increase in food prices last month were higher prices for fresh & dry vegetables (+9.8%) and eggs. The index for core finished goods bumped up by +0.3%. Half of last month’s increase came from higher prices for light motor trucks (+1.5%). Higher prices for passenger cars and pharmaceutical preparations were also important.
Prices of intermediate goods were mostly down in July. The intermediate energy goods index was down by -0.7% last month after dropping by -2.6% in June. Lower prices for jet fuel and gasoline were primarily responsible for the July decline. Prices for intermediate foodstuffs also fell (-0.4%). This was the first decline in food prices since March and was led by lower prices for beef and veal. The index for core intermediate goods retreated by -0.4%, pushed down by lower prices for basic organic chemicals and steel mill products.
The price index for crude energy goods jumped by +4.5% last month. July’s increase was due almost entirely to a +11.7% increase in the index for natural gas. The index for crude foodstuffs also posted a significant increase (+3.3%). The core crude index declined by -1.4% in response to falling iron and steel scrap prices (-6.7%) and wastepaper. (Kimberly Ritter)
Source: http://www.bls.gov/news.release/pdf/ppi.pdf
Tuesday, August 24: L.A. NABE: Los Angeles County Strategic Plan: A discussion of the Economic Development Plan with David Flaks of LAEDC.
11:30 am to 1:30 pm at the City National Bank Building (555 S. Flower St. 13th Floor, Los Angeles)
Endorsed by the LA County Board of Supervisors and the City of Los Angeles, the LAEDC partnered with a diverse group of local entities to formulate this plan. David Flaks is the Senior Vice President of Strategic Initiatives for the LAEDC. He is responsible for directing the LAEDC's consulting, policy and strategic communications competencies to support the implementation of the Strategic Plan for Economic Development in L.A. County (2010-2014) and affect policy in a way that furthers the LAEDC's mandate to attract, grow and retain businesses and jobs in L.A. County.
Saturday, September 25: Valley Economic Development Center: Where's the Money Access to Capital Business Expo
8:00 AM - 2:30 PM at The Odyssey Restaurant (15600 Odyssey Drive), Granada Hills.
Join us for a day of Education, Resources & Business Growth! Discuss your financing needs with lenders – schedule a one-on-one consultation. Obtain information from a wide range of business resource providers. Attend workshops where these topics will be discussed by panels of experts.
Save the Date! Wednesday, November 10: The LAEDC 15th Annual Eddy Awards
6:30 p.m. Reception. 7:30 p.m. Dinner and Awards Program. At the Beverly Hilton. Contact Justin Goodkind (213) 236-4813 for sponsorship and tickets.
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. We are also pleased to present the 2010 Most Business-Friendly City in Los Angeles County award. The winning city will be announced live at the event.
The Economic Data Global Express (e-EDGE) is a free service of the Los Angeles County Economic Development Corporation (LAEDC). Permission to quote any proprietary part of this release is granted given proper credit. Distribution is allowed provided that no modifications are made to the original content. Sponsors of this service do not necessarily endorse all opinions stated herein. For more information, please e-mail to eedge@laedc.org. To contact LAEDC, please call 213-622-4300.
Subscribe to e-EDGE and receive current economic news and major developments. Your e-mail address will not be disclosed to any outside party (including e-EDGE sponsors) under any circumstances.
To send us comments regarding e-EDGE, please e-mail to eedge@laedc.org.