Merced sees 10th straight month of manufacturing job growth

MAY 20, 2016 10:51 AM

BY THADDEUS MILLER

April’s 11.2 percent jobless rate down from last year and from March

Merced County’s unemployment rate fell slightly in April compared with last year, with manufacturing jobs leading the way for growth, labor market analysts reported Friday.

The April jobless rate was 11.2 percent, improving from 11.9 percent one year ago, according to the Economic Development Department. The manufacturing sector grew by 1,100 jobs in that time, and 900 government jobs were added in the county.

April marked the 10th straight month that the manufacturing sector saw year-over-year growth. The leisure and hospitality sector also added 200 jobs.

April’s unemployment rate was the lowest recorded for that month since 2007, according to Steven Gutierrez, an analyst with EDD. The first four months of the year have recorded strong growth in manufacturing jobs, the best in recent history.

“The first four months of the year, this has been the best we’ve seen in Merced County going all the way back to (at least) 2002,” Gutierrez said.

Countywide, 12,800 people were counted as unemployed in April, 800 fewer than the same time last year. The total labor force, which includes those employed and those looking for work, was 114,400, up 200 compared with April 2015.

Farm jobs fell by 300 compared with April 2015.

The county’s April rate also fell from March’s revised 12.4 percent jobless rate, buoyed by 1,100 more farm jobs. Gutierrez said the county typically begins adding farm jobs this time of year as it moves toward the harvesting season.

Though the county’s numbers have improved, the jobless rate still is more than double the state unemployment rate of 5.3 percent and the national rate of 4.7 percent.

California officials reported that statewide unemployment continued falling in April as job growth perked up.

The 5.3 percent state unemployment rate was down a tenth of a point from the month before, the EDD said. It was the lowest statewide unemployment rate since June 2007.

Job growth statewide in April was a robust 59,600, up sharply from the 5,200 jobs added in March. The numbers suggest California is “on track for another good year in 2016,” said economist Stephen Levy, of the Center for Continuing Study of the California Economy, in a note to reporters.

The jobs report came exactly a week after Gov. Jerry Brown, unveiling his revised budget blueprint, urged the Legislature to rein in spending after April income tax revenues came in about $1.2 billion less than expectations. Although his revised budget projects that the economy will continue to expand at least through June 2017, the governor warned Californians that a slowdown could be coming.

“Like everything else, things don’t last forever,” he said last week. “The surging tide of revenue is beginning to turn.”

Over the past year, California has added 450,200 jobs, a growth rate of 2.8 percent.

Read more here: http://www.mercedsunstar.com/news/business/article78858057.html#storylink=cpy