COUNTY UNEMPLOYMENT PLUMMETS TO LOWEST LEVEL OF THE PANDEMIC
San Diego County’s unemployment rate hit its lowest point in the pandemic in November as retail hiring for the holidays pushed jobless claims down.
The unemployment rate was 4.6 percent, the state Employment Development Department reported Friday. It was down from 5.3 percent the previous month and the pandemic high of 15.9 percent in April 2020.
San Diego’s rate was still higher than the national rate of 3.9 percent but lower than the California average of 5.4 percent.
Holiday hiring in the retail sector contributed 7,300 new jobs across San Diego County from October to November. While the hiring can be chalked up to seasonality, because many retail jobs are temporary, analysts said the latest data had a major bright spot: More people returning to the workforce.
About 8,600 people joined or rejoined the workforce month-to-month. That reflects people getting their first job and people who had stopped looking for work getting a new job. It is big shift from much of the pandemic when employers have struggled to fill open positions.
“(The unemployment rate) was especially promising since it was achieved during a month that saw another large number of people entering or returning to the workforce,” said Lynn Reaser, chief economist at Point Loma Nazarene University.
When adjusted for seasonal swings, Reaser said the unemployment rate was also 4.6 percent. That compares to the seasonally adjusted 6.9 percent in California and 4.2 percent in the nation.
The employment picture, however, looks different when compared to the same month two years ago — prior
to the pandemic. In November 2019, the unemployment rate was 2.9 percent and the labor force was larger. San Diego County’s total employment remains 77,000 jobs below November 2019 levels.
Taner Osman, research manager at Beacon Economics, wrote in his analysis of the data it was unlikely California could reach pre-pandemic levels in 2022 with COVID-19 cases increasing.
“Steady employment growth continues but we’re not adding the volume of jobs that would put a serious dent in what was lost to the pandemic,” he wrote.
From October to November in San Diego County, the educational and health services sector was another big hirer in addition to retail, adding 3,700 positions.
Jobs in the category include ambulatory services, social assistance and work in nursing care facilities.
It was followed by leisure and hospitality, adding 1,700 positions at restaurants, hotels and casinos; government adding 1,700 jobs in mainly education; and professional and business services adding 1,300 jobs.
Phil Blair, executive officer of staffing agency Manpower West, said many San Diegans are still willing to stay out of the job market until they find the right job and pay.
He said workers had reasons for staying away that made sense: Concern over COVID-19, not liking their previous job and not being happy with pay options.
He said rising wages, even in entry-level jobs, might be worth some unemployed workers taking a second look at open positions.
“I think if they take the initiative to see what’s out there, they would find jobs they could be excited about,” Blair said. “And we literally need them to keep the economy going.”
Gov. Gavin Newsom released a statement Friday celebrating California creating nearly 1 million jobs since February.
“While the state continues to see a robust recovery,” he wrote, “creating nearly 22 percent of the nation’s jobs in November and the largest unemployment rate decrease since February, there’s still more work to be done getting folks back to work and supporting those hardest-hit by the pandemic.”
Compared with other parts of California, San Diego County is about middle of the pack with its jobless rate of 4.6 percent. State labor officials do not seasonally adjust jobless rates for individual counties.
The rate was 7.1 percent in Los Angeles County, 4.1 percent in Orange County, 3.3 percent in San Francisco County, 5.5 percent in Monterey County, 3.2 percent in Santa Clara County and 5.4 percent in Riverside County.