San Diego County employers nearly tripled the number of jobs added from April to May, but the county’s unemployment rate remained unchanged, the state Employment Development Department announced Friday.
Employers in the region added 6,400 nonfarm jobs in May, up from 2,400 in April, according to the unadjusted data. It’s the most jobs the county has added since last November, when payrolls expanded by 7,200.
“This is a better unemployment report than we’ve had. It’s not great, but at least it’s better than what we’ve seen earlier in the year,” said Alan Gin, an economist at the University of San Diego.
Gin said he found a 13,400 job gain over the past 12 months as the most encouraging sign. In the past it had been below 10,000.
In order to make a significant dent in the unemployment rate, Gin said 20,000 to 25,000 jobs over a year are needed. However, Point Loma Nazarene University, in an updated projection, says the county will likely add between 14,000 and 15,000 jobs year over year through 2012.
“Overall the San Diego economy continues to gradually heal in the recession, but we could do a little better,” said Lynn Reaser, PLNU’s chief economist.
Still, the county’s unemployment rate is at 8.8 percent, the same as it was from April, which was revised up from 8.7 percent.
“There are a lot of people that have given up looking for work and I can understand why because it’s been very discouraging,” said Norman Zix, 49, who lives near San Diego State and has been looking for a job since December after 14 years in financial services. “I’m optimistic because I’m getting better at the interviewing process so I’m gaining more confidence.”
The unemployment rate is at its lowest in more than three years. It didn’t fall despite the job growth partly because about 1,400 people entered the labor force, not all getting jobs.
“Part of that is with job growth people that were sitting on the sidelines and not being counted in the civilian labor force are jumping back in,” said Kelly Cunningham, an economist at the National University System Institute for Policy Research.
Reaser, the economist at PLNU, said hiring would remain slow as companies hesitate to invest in full-time workers given concern over issues such as health-care form, the presidential election and the European debt crisis.
“It remains a very uncertain time,” she said. “It spans the whole gamut, from health-care providers, insurance companies, financial institutions with changing regulations, aerospace and defense contractors, and ship builders.”
The construction field grew the most in the county in May, adding a net of 1,500 jobs. More than 90 percent of the job growth came in specialty trade contracting. Construction of buildings gained 300 jobs, but the heavy and civil engineering construction sector dropped by 200 jobs.
Seven other sectors grew, including financial activities, which added 1,400, and trade, transportation, utilities, which grew by 1,000.
Only the government sector lost jobs last month, shrinking by 100 employees. Statewide, California’s unemployment rate dipped slightly in May to 10.8 percent, down from 10.9 percent the previous month, in what state officials said was a sign of continued economic recovery.
California employers added more than 33,900 nonfarm payroll jobs in May, the largest month-over-month increase nationwide. The largest job gain was in the leisure and hospitality sector, which added 13,200 jobs.
Since the recovery began in September 2009, officials say 425,000 jobs have been created in the state.
The rate in May was more than a full percentage point better than the 11.9 percent unemployment rate at the same time a year ago.
California’s figures contrast with the national trend. The nationwide jobless rate rose to 8.2 percent last month from 8.1 percent in April, its first rise in nearly a year.
California’s unemployment rate is the nation’s third highest, behind Nevada, with 11.6 percent and Rhode Island with 11 percent.
The Associated Press contributed to this report.
Written by
Jonathan Horn
