State Unemployment Continues Its Decline

California’s surging economy added 20,100 jobs in June across a broad spectrum of industries, further trimming the state’s unemployment rate to a seven-year low of 6.2%, down from a revised 6.4% the previous month, officials reported Friday.

Although the number of jobs created in June was modest compared with previous months, economists said more industries are now participating in the state’s expansion. Last month saw continued payroll growth in electronics production, services and software, all of which led California’s recovery out of recession. But there were also notable gains in once-stalwart industries such as aerospace and real estate.

Aerospace manufacturing added 800 jobs last month, growing for the ninth straight month, as companies continued to take advantage of the strong commercial aircraft and export markets. Real estate employment also shot up by 2,300, buoyed by a sizzling resale market in Northern California and resurgence in the south.

Figures from the California Employment Development Department also show the state’s communications sector widened by 1,000 jobs in June and the finance sector by 600 jobs. Even the insurance industry, which has long been shedding employment through consolidations, added 200 to its payrolls last month.

“The expansion is spreading nicely now to even some of the restructuring industries,” said Ted Gibson, economist at the state Department of Finance.

Northern California counties remain ahead of the pack, thanks to the robust high-tech manufacturing base in that region. But Los Angeles County, which accounts for a third of the state’s economy, appears to be gaining ground.

The jobless rate in Los Angeles County, which fell sharply in May, dipped again in June, to 6.8% from a revised 6.9% the previous month. Just a year ago, unemployment in the county stood at 8.3%.

“We’ve made significant gains,” said Mike Caplis, the state’s job market analyst in Los Angeles.

The motion-picture industry has been the big driver for Los Angeles County, although it may be cooling down somewhat. The June data show motion-picture employment actually declined by 600 from May, to 144,100, but Caplis attributed that mainly to seasonal factors. On a year-over-year basis, he said, film production payrolls in the county were up by 5,400 jobs, or 3.9%.

Business services, which includes software firms and temporary-help agencies, also continues to hire briskly in Los Angeles County. That sector added 4,200 jobs between May and June, and total employment is up 6.5% from a year ago.

Overall, nonfarm employment in Los Angeles County rose by a modest 1.4% in June from a year ago, about half the rate of California as a whole.

Statewide, nonfarm employers are on target to add some 400,000 jobs this year, with services (which include multimedia) and construction leading the way. The gap between California’s seasonally adjusted jobless rate and the nation’s--which edged up to 5% in June from 4.8%--also is expected to narrow in the coming months.

In Southern California, unemployment is lowest in Orange County, where the jobless rate was a meager 3.3% in June, up from 3.2% in May. Based on the June data, nonfarm employment in Orange County is expanding at an annual rate of 2.6%, largely due to growth in construction and nondurable manufacturing, including aerospace.

The Inland Empire is growing even faster, as manufacturers, retailers and service businesses expand or relocate there.

However, unemployment in Riverside and San Bernardino remains relatively high, a result of that region’s growing labor force and the presence of many unemployed workers once tied to the farm industry. The combined jobless rate for the two counties was 7% in June, up from 6.4% in May.

Similarly, Ventura County saw its unemployment rate climb in June, to 5.9% from 5.5%, as did San Diego County, whose rate edged up to 4.4%, from 4.3% in May.

Unlike the figures for the state and Los Angeles County, the other counties’ jobless rates are not adjusted for seasonal variations.

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Still Falling

California’s unemployment rate fell to 6.2% in June, when more than 20,000 jobs were added to the state’s economy.

1997, June: 6.2%

* Source: Labor Department