Following 14 months of job growth, California companies generated 41,400 new jobs in April, lowering the state's unemployment rate to its lowest level since the COVID-19 pandemic began.
The nation's most populous state has already recovered more than 91% of the 2.7 million jobs it lost in March and April 2020, when Gov. Gavin Newsom imposed the nation's first statewide stay-at-home order, forcing many companies to close.
California Reclaims More Than 90% of Employment Lost
In April, California's labor force, the number of individuals who work or are searching for work, grew by 111,800 people, a positive indication for firms that have struggled to find workers to meet rising demand for products and services.
However, there are some concerning indications on the horizon. As seen by roughly 1.28 million job postings across the state at the end of March, California's job growth isn't as strong as it could be. Inflation is still strong in the state, with average gas prices reaching a new high of $6.06 per gallon on Friday. Following a quick rise in mortgage rates, home sales which had hit record highs during the pandemic have halted.
Per KCRA, California's economy is critical to the nation's overall health, with 39 million citizens accounting for more than 11% of the US population. According to the California Employment Development Department, job growth in California increased by 7.4 percent from January 2021 to January 2022, compared to 4.6 percent nationwide.
Of course, the astonishing number of jobs lost in the first two months of the pandemic is one reason why California has been able to add so many jobs in the last year. It took more than two years for the state to reclaim more than 90% of the jobs it had lost.
Despite this, California continues to have a high rate of new unemployment claims, accounting for approximately 24% of all new claims statewide. California employs around 11% of the US workforce.
The major population areas of Los Angeles and the San Francisco Bay region accounted for about 80% of California's job increases. At 2.1 percent, Santa Clara and Marin counties had the lowest unemployment rates in the state while Imperial County, on the US-Mexico border, had the worst unemployment rate at 11.7 percent.
In April, eight different industries in California created new employment, as per CBS News. The leisure and hospitality industry had the greatest gain although it was the most impacted during the pandemic due to limitations on public gatherings. The information sector, which includes publishing, motion pictures and sound recording, telecommunications, and broadcasting, added 2,200 new positions, bringing the total number of jobs lost during the pandemic back to zero.
Construction, which shed 13,200 jobs in April, saw the most employment losses. The majority of the losses, according to state officials, were caused by rain in April, which harmed foundation, exterior, and finishing contractors.
Gov.Gavin Newsom's Statement on Decreased Unemployment Rate
Governor Gavin Newsom released the following statement in response to today's jobs report, which showed that California added 41,400 jobs in April and cut its unemployment rate to 4.6 percent, both of which outperformed national job growth and unemployment reduction rates.
"California continues to lead the nation's economic recovery, employing more people and reducing unemployment rates than the rest of the country," said Governor Newsom.
California has added nonfarm jobs month after month for 14 of the last 15 months, totalling 1,435,700 new jobs in that time. The state's unemployment rate fell by 3.7 percent year over year, while the unemployment rate fell by 1.2 percent in 2022 alone, compared to a national decline of .3 percent.
Since January 2021, California has seen an employment growth rate of 9%, compared to 5.8% nationally. California has already recovered more over 91 percent (2,519,000) of the 2,758,900 nonfarm employment lost during the COVID-19 pandemic in March and April of 2020.
California had the biggest year-over-year seasonally adjusted job gain in the country in April 2022. For the third month in a row, Leisure & Hospitality (+20,100) saw the biggest rise among California's 11 industry sectors. The largest contributor to the increase was the increase in full-service restaurants.
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