Los Angeles Unemployment Declines Despite Drops in Jobs

By March 8, 2016 General No Comments

In January 2015, Los Angeles, California saw an 18,000 drop in its employment numbers even though its unemployment rate for the previous month was relatively low at nearly six percent. This may seem strange, but once you ask a few people why they are out of work, it may make better sense. Perhaps Mary has not found the right fit for her, while Harry grows weary of never finding work and eventually gives up.

Los Angeles had about 4.4 million workers in January 2014, as opposed to the dropped numbers for January 2015. Surprisingly, Los Angeles county’s unemployment rate was the same as the whole state of California. Normally once the holiday season is over, employment numbers decrease anyway because the seasonal positions are no longer needed. This is expected to happen within certain businesses each year, and Los Angeles County started it with about 88,000 empty positions.

The numbers keep record of the progress, or lack of progress for the county within a given year. To the person who was holding out hope that their seasonal job would turn into a permanent position, those numbers mean unemployment. The devastation of the loss could make him or her decide to give up on finding another job, or make the long-term decision to go back to school. Earning a degree could be a step up to a more permanent position, giving that many SEO companies in Los Angeles prefer to hire people with some secondary education.

The Employment Development Department in California takes in affect the loss of those seasonal jobs after the holidays are over. With this factored in, Los Angeles still recorded a loss of 14,000 jobs in January. Unfortunately, the manufacturing business loss about 7,000 jobs. Once the adjustment was made by the EDD, the December 2014 employment number for Los Angeles was more like 4.37 million instead of the previous 4.4 million reported in January 2015. The seasonal jobs were not considered actual jobs. Therefore, the numbers could not reflect a loss of those jobs.

The loss also does not completely come from the elimination of seasonal positions. There could be companies needing to lighten their payroll for reasons such as filing for bankruptcy. According to the EDD, retail businesses suffered the harshest loss at nearly 19,000. Retailers are normally the businesses that tack on more workers during the holidays to meet the high shopping demand during the season.

Even though the unemployment rate drop for Los Angeles County was a good thing, there was a big drop in the amount of jobs to be had. All in all, Los Angeles had a 2.2 percent growth in payroll numbers from January 2014 to January 2015. This included up to 12, 400 for professional business services; up to almost 20,000 for food accommodation services, and health care and social assistance went up to a little over 27,000.

Leave a Reply

Your email address will not be published.