EDD released its “benchmarking” of 2009 payroll employment recently, and the results were dramatic. The monthly payroll surveys had indicated that payroll jobs declined during 2009 by 579,836 jobs. However, a fuller review of payroll data by EDD indicated the true job loss was 818,400 jobs—an additional 338,000 jobs lost. .
Taking this recent information, the chart below shows the payroll job numbers in California by sector in December 2006 and in December 2009—a period in which the state payroll jobs decreased by 1,400,000 jobs.
By far, the biggest loser was the construction sector, which lost over 350,000 jobs in this three-year period. The job losses occurred in both residential and commercial construction, and most of all in the Specialty Trades—which constitute the main bulk of construction employment.
Only one sector showed significant job gains: Educational and Health Services. Government showed a gain over this period, but mainly because it grew during 2007. Since December 2007, the Government sector has lost jobs.
The most recent state employment numbers for January 2010, released earlier this month, showed a net job gain of 32,500—modest but moving in the right direction. The employment numbers for February will be released on March 26, and will indicate whether the positive trend is continuing. Employer surveys over the past few months suggest that hiring will pick up during 2010, but that the pickup will not be swift one.
Further, I would note that in the Republican gubernatorial debate on Monday, the jobs issue was a central issue, just as it is a central issue in virtually all political campaigns today and at all levels of government. Both candidates urged tax incentives for job creation, even as they differed on the precise incentives. Tax incentives for job creation are worth pursuing, as are a range of other policies on the state level, though we should not think there is a quick fix.