California's Unemployment Rate Decreases

California’s Seasonally-Adjusted Unemployment Rate decreased in November to 12.3%

From the Employment Development Department

SACRAMENTO – California’s unemployment rate was 12.3 percent in November, and nonfarm payroll jobs decreased by 10,200 during the month, according to data released today by the California Employment Development Department (EDD) from two separate surveys.
The U.S. unemployment rate also decreased in November, falling to 10.0 percent. In October, the state’s unemployment rate was 12.5 percent, and in November 2008, the unemployment rate was 8.3 percent. The unemployment rate is derived from a federal survey of 5,500 California households. Nonfarm jobs in California totaled 14,194,200 in November, a decrease of 10,200 over the month, according to a survey of businesses that is larger and less variable statistically. The survey of 42,000 California businesses measures jobs in
the economy. The year-over-year change (November 2008 to November 2009) shows a decrease of 617,600 jobs (down 4.2 percent).

EMPLOYMENT AND UNEMPLOYMENT IN CALIFORNIA

The federal survey of households, done with a smaller sample than the survey of employers, shows an increase in the number of employed people. It estimates the number of Californians holding jobs in November was 16,067,000, an increase of 26,000 from October, but down 931,000 from the employment total in November of last year. The number of people unemployed in California was 2,254,000 – down by 45,000 over the month, but up by 716,000 compared with November of last year.

PAYROLL EMPLOYMENT DETAIL (SEASONALLY ADJUSTED)

EDD’s report on payroll employment (wage and salary jobs) in the nonfarm industries of California totaled 14,194,200 in November, a net loss of 10,200 jobs since the October survey. This followed a gain of 31,100 jobs (as revised) in October.

Let’s compare Seasonally-Adjusted vs. Seasonally-Unadjusted data.

Looking at the unadjusted numbers, total employment fell by 21,000. The reason that the unemployment rate fell is that the EDD estimates that the total civilian labor force fell by 48,000 people.