County Jobless Rate at 5.9%, a 6-Year Low

Ventura County’s unemployment rate slid to 5.9% in April, the lowest level in almost six years, state figures show.

The regional statistics released Friday mirror those of the state, which at 7.5% hit its lowest jobless rate in more than five years. Moreover, both state and county figures show that jobs increased in almost all economic sectors, indicative of a broad-based recovery.

“It’s not just a couple of industries leading the charge,” said Mark Schniepp, director of UC Santa Barbara’s Economic Forecast Project. “That’s more healthy than if jobs were created in one or two sectors. . . . The economy in general is full and a little bit more robust.”

April represents the first time the county’s unemployment rate has dropped below 6% since June 1990, when a 5% rate was recorded, according to the state Employment Development Department. In March, the unemployment rate was 6.2%.

However, the rate of job creation dipped to 1.4% over the same month last year. That compares with increases of more than 2% earlier this year, Schniepp said.

“The report shows continued recovery of labor markets, continued jobs being created,” he said. “However, it shows we are plateauing at the moment in overall job growth.”

The gradual decline in the growth rate could be just a blip in a labor market that is essentially chugging toward full employment, Schniepp said. Most economists believe an unemployment rate of 5% to 6% is natural, with the remainder of the labor force being unemployable for a variety of reasons. Moreover, with negligible migration into the county, the available work force is being depleted.

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On the other hand, the subsiding rate of job growth may portend an economic recovery approaching maturity and getting a little sluggish, Schniepp suggested. The job-growth figure is one to watch over the next several months, he said.

Agriculture, which gears up at this time of year for the peak summer months, is not entirely responsible for the lower unemployment. Although there are 1,800 more farm-related jobs than there were in March, agricultural employment is actually down 4.6% over April 1995.

Total nonfarm employment in Ventura County added 3,400 jobs over April 1995. The service sector grew by 1,200 jobs, and manufacturing saw an increase of 700 jobs. Traditionally higher-paying high-technology manufacturing positions are up by 300 from a year ago.

“We’re expanding our work force at the moment, so we’re part of that change,” said Jim Littrell, vice president of human resources at PTI Industries, a Newbury Park manufacturer of high-tech filtration products for the pharmaceutical and aerospace industries. “We just added a second shift because business is so good.”

The expansion over the next six months will mean an additional 25 positions at the company, which employs 222 permanent workers, he said. It’s the first time the 70-year-old firm has added a second shift on what it calls its element production line.

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The mining sector showed the largest percentage decrease in jobs, with a loss of 15%, down 300 positions from a year ago. Food products recorded an identical percentage increase, adding 200 jobs over April 1995.

A total of 381,600 county residents were employed in April, an increase of 1,200 from a year ago.

Ojai had the lowest estimated unemployment rate at 3%, followed by Moorpark at 4.4%. Thousand Oaks’ rate was estimated at 4.9%, Ventura’s at 4.6%. At 9.4%, Santa Paula had the highest jobless rate of any city in the county, with Oxnard second at 8.4%. Figures for individual cities are extrapolated, based on 1990 census data.

Steve Kinney, president of the Greater Oxnard Economic Development Corp., said he wasn’t surprised by Oxnard’s relatively dismal figures, given that Nabisco Foods and Nestle USA shut down operations in the city in March, laying off about 700 workers.

On the other hand, some companies are showing an interest in moving to Oxnard.

“They still have a sense there is an available labor force in the community because of the higher unemployment numbers,” he said.

Despite this month’s slower-than-usual rate of job creation, Schniepp is bullish on the county’s overall prospects for the coming year.

“We believe we will continue to see job growth at between 4,000 and 6,000 workers on an annual average,” he said. “There’s a lot of optimism in the air in Southern California, and Ventura County is one of the leading counties in terms of job growth over the last year . . . so it’s a good place to be.”

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Ventura County Jobless Rate

April 1996: 5.9%

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Annual Rates

1995: 7.3%

1994: 7.9%

1993: 8.8%

1992: 8.8%

* Source: California Employment Development Department