Economist: Job growth in Inland Empire returning to normal

Businesses are hiring, and the Inland Empire is starting to see it — in the numbers anyway.

The region saw the net creation of about 46,800 new jobs in 2013 — a statistic Inland Empire economist John Husing said is a return to normalcy after the economic downturn of the past few years.

“What normally has occurred in the Inland Empire is, if you go back over the last 10 years and you look at growth, 46,000 is a slightly above-average number for us,” Husing said. “We’ve been as high as 60,000 but 46,000 is really strong. So it means that 2013 was an extraordinarily strong year, and it means that the whole economy has reached the point where it shifted gears from being struggling to starting to act more normally.”

The figure, Husing said, is based on a revision by the California Economic Development Department released on Friday. An earlier EDD estimate had net job growth in the Inland Empire for the past year at about 14,000 jobs, though the figure was presented prior to new calculations from data from the Bureau of Labor Statistics, Husing said.

“The conversations I’m having with people in different sectors of the Inland Empire economy are very positive,” said Paul Granillo, president and CEO of the Inland Empire Economic Partnership. “People have been reticent to invest and to hire and I think what I’m hearing is that now is the time that things have changed and that investment is necessary for them to position themselves for the next few years.”

According to Husing’s data analysis, social assistance was a sector that made the biggest gain in job growth with about 12,000 new jobs.

“That was a rather aggressive expansion of social services last year and that makes sense given the fact that unemployment tends to be rather high,” Husing said.

The revised data also marked a strong return for the construction sector with 6,700 new jobs according to a chart provided by Husing.

“Construction has been negative for the last several years,” Husing said. “That is a definite turnaround for that sector since we’re finally seeing construction taking back its traditional role as a strength for our economy.”

In an economic report keynote earlier this year, Husing said the sectors of logistics and healthcare are major driving forces of the regional economy.

According to the latest march EDD report, looking at the past year, trade, transportation, and utilities were major growth sectors, adding 9,600 more jobs. Transportation and warehousing added 4,300 jobs, retail trade was up 3,800 jobs and wholesale trade increased by 1,700 jobs over the year, according to the EDD.

Other industries that reported job gains for the year include leisure and hospitality employment with 8,600; education and health services with 6,600 jobs; and professional and business services with 6,100 jobs, according to the EDD report.

The Southern California Association of Governments, Granillo said, expect the Inland Empire population to grow from 4.3 million to 6 million by 2035.

“The economy is on an upswing and people are making investments in the employees, and looking to, in some cases, relocate to the Inland Empire, based on the fact that our economy is situated for growth,” Granillo said. “The people I’ve been talking to lately are in the professional services sector – lawyers and accountants looking to grow their footprint in the Inland Empire or to establish companies in Riverside and San Bernardino Counties.”

PHOTO: The State Economic Development Department on Friday released a jobs report for the Inland Empire - showing a surprising 46000 people were hired for new jobs - the figure is higher than an earlier report - surprising IE economist John Husing. Construction has made a strong showing in the new report.

via: http://www.sbsun.com/business/20140312/economist-job-growth-in-inland-empire-returning-to-normal

Support the California Homes and Jobs Act of 2013!

Campaign News August 06, 2013

In just 6 days, the California Homes and Jobs Act will be heard by the first Assembly policy committee, with the second hearing scheduled only two days later. Housing and Community Development: Monday, August 12 (1:30 p.m.)  Labor and Employment: Wednesday, August 14 (1:30 p.m.)  DAY 2 of Our 6 Days of Action  Imagine a legislator who serves on the Assembly committees getting 200 letters one day, 100 phone calls two days later, and 300 tweets the day of the hearing, all asking for a YES vote for homes and jobs for Californians.   Today's Action: CALL the members of the Assembly Housing and Community Development Committee.  If you can make 3 calls, phone: Cheryl Brown 916.319.2047 Brian Maienschein 916.319.2077 Beth Gaines 916.319.2006 What to Say: "Hi, my name is ________. [If calling on behalf of an organization . . .  I'm calling on behalf of __________.] I am a strong supporter of SB 391: The California Homes and Jobs Act. Our community desperately needs the jobs and affordable places to live that it will generate. I urge Assemblymember ________ to vote yes on SB 391 in housing committee on Monday."   __________________________________________________________________ If you can make 6 calls, first phone the Assemblymembers above (using the script above), then phone the Assemblymembers below (using the script below): Ed Chau: 916.319.2049 Toni Atkins 916.319.2078 Sharon Quirk-Silva 916.319.2065   What to Say: Hi, my name is ________. [If calling on behalf of an organization, I'm calling on behalf of __________.] I am a strong supporter of SB 391: The California Homes and Jobs Act. I wanted to call and thank Assemblymember ________ for coauthoring SB 391 and let the Assemblymember know we appreciate his/her yes vote in housing committee on Monday." Take credit for your work!  Enter your name to let us know you made calls.  What else can you do? Forward this e-mail to your listservs/contacts.  via: http://ow.ly/nH0Ce

California Unemployment Rate Holds at 9.8%, Highest in U.S.

The state's jobless rate, unchanged in January for the second straight month, is tied with Rhode Island. But California is No. 2 in payroll job growth.

California's jobless rate was unchanged at 9.8% in January for the second straight month, and that lack of improvement put the Golden State in a tie with Rhode Island for the worst unemployment in the U.S.

On the other end of the spectrum, North Dakota had the lowest jobless rate, 3.3%, the government said Monday in releasing updated and revised employment data for all 50 states.

California will release its county-by-county breakdown of jobs Friday, which economists expect will reflect the slow growth that is predicted in the state for 2013.

"We are expecting growth to pick up in the latter part of the year and in 2014, and the unemployment rate to come down at that point," said Jerry Nickelsburg, a UCLA economist who writes a quarterly economic forecast on the Golden State.

These statistics, based on more complete payroll information that includes tax records, show that California and other states in the western half of the country did much better in job growth over the last 12 months than the rest of the U.S., powered by the energy sector, technology, trade with Asia and a rebounding housing market.

Texas led all states in payroll job growth from January 2012 to January 2013; it added 332,400 jobs, an increase of 3.1%, according to the Bureau of Labor Statistics.

California was second. Though little changed from December to January, California's payroll count grew by 286,100 positions, or 2%, over the 12-month period. (Payroll jobs exclude work by the self-employed and jobs such as unpaid family work.)

The biggest gains came in leisure and hospitality, which added 7,800 jobs; construction saw a 7,300 jump. The largest drop in jobs — 5,500 — came in the combined trade, transportation and utilities sectors. The manufacturing sector shed 2,900 positions.

Nickelsburg said California was feeling the effect of a nationwide payroll tax increase as well as a state-implemented bump in sales tax and income tax on wealthy individuals. The automatic federal budget cuts that kicked in March 1, known as sequestration, will also affect growth.

"There are a lot of things going on," he said. "It's a little hard to ferret out what is the sequester and what are the other factors."

The Northeast region lagged behind the West, hurt by its relatively greater commercial links to Europe and by consolidation in financial services. Although the Northeast had a good January — partly the result of rebuilding after Superstorm Sandy — its job tally in the month was up just 1.1% from a year earlier. New York added 90,800 jobs over the year, an increase of 1.1%.

The pace of job growth in the Midwest was higher than in the Northeast but lower than in the West. The region has benefited from sturdy gains in manufacturing, particularly in the car industry.

For the U.S. as a whole, hiring accelerated in February, with employers adding 236,000 net new jobs compared with 119,000 in January, the Bureau of Labor Statistics previously reported. The national unemployment rate fell to 7.7% last month.

via LA Times