O.C. Jobless Rate Takes Plunge; Lowest Since ’91 : Economy: October’s rate is 5.1%, down sharply from 7% a year ago. Analysts declare end of local slump.
Orange County’s jobless rate plunged in October to 5.1%, the lowest level in nearly three years and down sharply from 7% a year ago, the state’s Employment Development Department reported Monday.
Buoyed by gains in the services sector, the county’s economy added 4,800 payroll jobs last month from September, when the jobless rate was 6%. The news prompted analysts to declare that the local economy has finally shaken off its long slump.
“This is the first time we are signaling an expansion,” said Esmael Adibi, director of the Center for Economic Research at Chapman University in Orange.
The number of unemployed in the county fell by 14%, to 68,800. And October marked the county’s first year-to-year gain in payroll jobs since early 1991.
While Orange County continues to take its hits in aerospace and other manufacturing industries, it has seen gains in such diverse areas such as apparel, health care and international trade. Its jobless rate is now the lowest since December, 1991, when it reached 4.8% before beginning a steady climb during the recession.
Unemployment in Orange County peaked at 7.9% in July, 1993, but has since edged downward.
Like California and the nation, Orange County has seen its job market boosted by continuing growth in the temporary help industry. In October, that accounted for a big part of the county’s 2,100 new payroll jobs in the services sector.
Gene Wilson, president of Thomas Temporaries, an Irvine-based firm with 19 offices in Southern California, said many businesses in the region are still reluctant to hire regular employees permanently, so they call on firms like his.
“It follows the recovery of businesses,” said Wilson, adding that demand for temporary help in clerical, technical and light industrial work are all up.
Orange County’s economy saw healthy job gains in the amusement industry, health services and educational services. The county also added 400 retail and wholesale trade jobs last month.
Construction jobs in the county were down 100 in October from the previous month, to 45,600. But that was still up by 1,100 jobs from October, 1993, mostly in specialty trades such as plumbing and carpentry.
“The work has increased,” said Ron Kennedy, executive secretary of the Building and Construction Trades Council of Los Angeles and Orange County. In Orange County, Kennedy said, union workers have been helped by such projects as the new parking lot and administration building at Disneyland.
The only sector that showed significant weakness last month was the finance and real estate industry, which lost 900 jobs, mainly because of lingering troubles in the banking community, where consolidation and closures are continuing.
Overall, though, October’s report provided some much-needed good news for Orange County, which recently has been jolted by announcements of layoffs at large corporations that include Hughes Aircraft in Fullerton and AST Research in Fountain Valley.
“There is no question that a recovery is proceeding,” said Anil Puri, chairman of Cal State Fullerton’s economics department.
Monday’s report showed that 1.28 million people in the county were working in October. That was up nearly 30,000 from September and an increase of 40,000 since October, 1993.
Orange County outpaced other areas in the Southland as well as the state as a whole. “The bright light is Orange County,” said Jack Kyser, economist for the Economic Development Corp. of Los Angeles County.
California’s jobless rate for October stood at 7.7%, down from 8.3% the previous month. Statewide, total employment is still off about 300,000 jobs from its peak in June, 1990. Nationally, unemployment dipped a tenth of a percentage point last month to 5.8%, the lowest rate in four years.
Los Angeles County’s jobless rate for October was 7.8%, down from 8.3% in September. The jobless rates for Riverside, San Bernardino and Ventura counties also dropped in October, reports released Monday show, but each of those areas lagged behind the state’s performance.
Jobless Rate Drops
Unemployment in Orange County dropped in October to its lowest level in three years. October 1994: 5.1% Source: California State Employment Development Department
