September 23, 2013
Lower Employment Rates
Employment rates continue to drop in San Diego County to 7.4 percent and below the 9.3 percent in August slowing notably since March with no annual job growth.
Six thousand and three hundred people left the labor force in which they retired, quit looking for jobs and went back to school. The unemployment rate fell from 7.8 percent in July once this occurred. A net of 2,900 employers were added to Augusts’ payroll, the state Employment Development Department reported last Friday. The data showed that San Diego County had no net growth of jobs last month. The country’s job growth also trails the national rate of 1.6 percent and California’s rate of 1.5 percent.
“The pace of job growth is just slowing considerably and to me that’s a little worse bit worrisome,” Alan Gin, economist at the University of San Diego told San Diego Union Tribune. “What we need is good, year-over-year job growth to help bring down the unemployment rate faster.”
In the past year, San Diego County gained 14,800 jobs with many positions in food service’s, health services, health care and social services, and business service sectors are increasing in employment.
Unemployment dropped because of the decrease in the workforce and not necessarily because the increase in employment rates. People in the labor force that share the same range of age or in search for one for 35 approximate years.
“The unemployment rate is coming down faster than the Fed thought, but it’s not declining for the right reason,” said Roberto Perli, a former central bank official who is a partner at Cornerstone Macro LP in Washington, told Bloomberg in an article published on Aug. 9, 2013.