e-EDGE is now available as an RSS feed. [Click here to subscribe to it.]The Bureau of Labor Statistics released its latest U.S. Labor Market Report on Thursday, covering the U.S. employment situation in June. Total nonfarm employment fell by -62,000 jobs in June. This was the same as May’s drop-off and a bit smaller than the April loss of -67,000 jobs but below the first quarter average monthly decline of –82,000 jobs. In total, U.S. employment has shrunk by -438,000 workers over the past six months, almost eliminating the gains of the last six months of 2007.
Government payrolls increased by 29,000 employees last month; so private-sector payrolls dropped by -91,000 jobs, the seventh consecutive monthly decline. Only two of the ten major industry groups reported higher job counts in May. The “plus” industries were education & health services (up by +29,000 jobs over the month) and leisure & hospitality (with an increase of +24,000 jobs). The biggest payroll declines were reported by professional & business services (-51,000 jobs, partly reflecting the loss of -30,000 temporary help positions), construction (down by -43,000 jobs over the month), and manufacturing (-33,000 jobs).
Compared with 12 months ago, nonfarm employers in the U.S. have added just +15,000 workers to their payrolls, an increase of only 0.01%. Private sector employment was down by -242,000 jobs or -0.2% over the year. Four private-sector industry groups reported higher payrolls compared with June 2007. The biggest job gainers were education & health services (+516,000 jobs) and leisure & hospitality (+262,000 jobs). Employment also increased over the year in “other services” (+31,000 jobs) and wholesale trade (+8,000 jobs). The construction and manufacturing sectors continued to bleed, with job counts plunging by -452,000 jobs and -353,000 jobs respectively compared to June 2007. Note that residential construction employment has declined by -345,000 jobs over the year; so payrolls in nonresidential and heavy construction have fallen by a combined -107,000 workers over the past twelve months.
In the separate BLS survey of households, the U.S. unemployment rate continued at 5.5% in June, the same as in May, but well up from 5.0% in April. The nation’s jobless rate was 4.6% in June 2007; so the unemployment rate has risen by almost one percentage point over the past 12 months. Among the major demographic groups, the jobless rates for adult men and women rose by +1.0 percentage point and +0.9 percentage points respectively over the year, while the rate for teenagers jumped up by +2.1 percentage points. Over the same period, the unemployment rate for whites and blacks both increased by +0.8 percentage points, while joblessness among Asians was up by +1.4 percentage points. The rate of unemployment among Hispanic workers has risen by +2.0 percentage points.
The nation’s jobless rate did not change in June as expected, and rates for 16-24 year olds continued to be elevated. This indicates that new entrants into the labor force are having difficulty finding employment. And no wonder. Employers are reducing head counts in many sectors of private industry. The steepest declines are still in activities related to housing construction, automotive and apparel/textiles manufacturing, and mortgage finance. These sectors lost -32,000 jobs in June and have shed -637,000 workers over the past 12 months (a 9.2% drop). The only sectors reporting consistent employment gains are education & health care (which seem to grow no matter what happens in other parts of the economy) and leisure & hospitality (where the year-over gains are ebbing). Not an encouraging picture. (Nancy D. Sidhu)
PR: http://www.bls.gov/news.release/pdf/empsit.pdf
The latest data from PKF Consulting reveals that Southern California’s hotel industry held up in April despite high gas prices and squeezed consumer budgets. In Los Angeles County, the occupancy rate was 77.3% compared with 76.0% last year. The average daily room rate (ADR) rose by 4.5% to $165.99. Six areas in the County had April occupancy rates over 80%, including: South Bay (83.0%); Marina del Rey (82.8%); Santa Monica (82.3%); Airport (80.9%); I-5 Corridor/Whittier (80.2%); and West Hollywood (80.2%). As usual, the highest ADR was found in Beverly Hills, up by 7.8% over the year to April at $437.28.
The news from Orange County wasn’t quite as good, with the April occupancy rate at 76.6% compared with 78.4% last year. The ADR increased, but by a moderate 2.5% to $159.52. The highest occupancy rate during the month was Anaheim’s 81.6%. The highest ADR was found in South Orange County, where the rate increased by 2.8% over the year to $240.70.
The April hotel occupancy rate in San Diego County was 78.8% compared with 77.7% last year. The ADR rose by 4.3% to $180.39. Three areas in the County had occupancy rates of 80% or better: Sports Arena/Old Town (89.9%); Mission Bay (85.8%); and Downtown (82.8%). The highest ADR was found in San Diego Bay Areas at $257.32, up by 5.3% compared with April 2007. (Jack Kyser)
The May nonresidential building permit value data from the Construction Industry was another mixed bag of news. In Los Angeles County through five months, industrial permits were up by 54.8% over the 2007 period, and retail was up by 17.2%. Hotel permits increased by a huge amount ($148 million this year versus nearly $19 million last year). However, office permit values were down by -54.3%. In Orange County through May, permit values for all four major nonresidential building types were down: industrial (-62.6%), office (-72.8%), retail (-73.9%), and hotels (-86.7%).
For Riverside County, the five-month permit values were mixed. Retail was down (-9.7%), while $23.8 million in hotel permits had been issued compared with none last year. Industrial permit values were down by -63.8% and office was behind by -12.7%. In San Bernardino County, hotel permit values were down by -33.0%, but all the other sectors were down from last year: industrial (-53.3%), office (-60.9%), and retail (-23.0%).
The San Diego County picture was really mixed through the first five months of 2008. Industrial permit values were down by -33.0% from last year, while office was off by -12.0%. Retail permits were up by 12.4% over the comparable 2007 period, while hotel permits were up by a thumping 489.8%. Things remained slow in Ventura County through May. Office permit values through five-months were down by -75.6% over the year, and retail permits were up by 73.2%.
In the nine-county Bay Area through five-months of 2008, office building permits were down by -3.0% over the comparable 2007 period, while retail was -10.5% behind, and hotels were down by -73.8%. However, industrial building permits were 59.6% ahead of last year, due to large projects in Alameda and Solano counties.
Wednesday, July 16: 2008 Mid-year Economic Forecast
In addition to the Mid-year Economic Forecast updates, the LAEDC and its subsidiary, the World Trade Center Association Los Angeles - Long Beach, will also unveil the final report of the LAEDC's Foreign Direct Investment Study, highlighting the economic impact to the regional economy. 2 panels of experts to include: James Dibbo, BT Americas; John Burns, John Burns Real Estate Consulting; Richard A. Weiss, City National Bank; Vance Baugham, WTCA LA-LB; and Jack Kyser, LAEDC.
The Economic Data Global Express (e-EDGE) is a free service of the Los Angeles County Economic Development Corporation (LAEDC). Permission to quote any proprietary part of this release is granted given proper credit. Distribution is allowed provided that no modifications are made to the original content. Sponsors of this service do not necessarily endorse all opinions stated herein. For more information, please e-mail to research@laedc.org. To contact LAEDC, please call 213-622-4300.
Subscribe to e-EDGE and receive current economic news and major developments. Your e-mail address will not be disclosed to any outside party (including e-EDGE sponsors) under any circumstances.
To send us comments regarding e-EDGE, please e-mail to research@laedc.org.