Christmas Hirings Credited for December Figures : County’s Jobless Rate Drops to 12-Month Low

Orange County’s jobless rate for December fell to a 12-month low of 2.5%, reflecting the traditional Christmas season hiring frenzy by retailers.

In November, the county’s unemployment rate was 2.9%.

Because of its dynamic and diverse economy--and to some extent because housing costs are so high that many unemployed people cannot afford to remain here for long--the county’s jobless rate has been among the lowest in the nation since mid-1986, according to state Employment Development Department labor market analysts.

Tied for Lowest

December’s rate tied the 2.5% rate of December, 1987, for the lowest on record in Orange County.

It also was the third lowest jobless rate in the state last month, trailing San Mateo County’s 2.2% and Marin County’s 2.4%. The statewide unemployment rate was 4.3% in December, while the national rate was 5.3%.

Because there always are some people between jobs in any urban area, most economists consider a jobless rate of 4% or lower to represent virtual full employment.

For the year, according to the EDD’s count, almost 64,000 new jobs were created in Orange County. That figure, however, includes part-time and temporary positions.

In all, the EDD said 1.33 million people were working in December compared to 1.27 million a year earlier.

Most of these jobs were in the business and personal service industries. Banking, real estate, financial services and wholesale and retail trade all posted gains for the year, as did state and local government employment.

Employers in the retail trades reported 222,600 jobs in December, up 5,500 from November and an increase of 10,300 jobs, or 4.9%, from December, 1987, said EDD labor analyst Connie Lau.

November and December are the traditional months when retailers and wholesalers temporarily increase their work forces to handle the holiday season crunch. The county’s jobless rate typically increases in the first quarter as most of those temporary jobs come to an end.

The total number of unemployed workers in the county last month was set at 33,600, down from 40,300 in November but up 3% from the 32,600 reported a year earlier.

The EDD’s official jobless tally does not include the so-called hard core unemployed who have given up looking for work or have exhausted state and federal unemployment benefits.