Finally, Some Job Growth
For the first time in 18 months, California registered a net gain of 25,700 jobs in October, according to the state Employment Development Dept. Six of the 11 industry sectors reported combined hiring of 48,600 workers, mostly in government (13,400), professional/business services (12,900) and educational/health services (12,900). Leisure/hospitality, information, and financial activities accounted for the other 9400 jobs added. Job declines were heaviest in manufacturing (-8300) and trade/transportation/utilities (-7800).
Nationwide, manufacturing has begun to build momentum, as economic activity in the sector expanded for the third consecutive month. California is lagging the national trend, however, with purchasing managers not expecting the state’s manufacturing growth to take hold until the last half of 2010, according to a Chapman University survey. Computer and aerospace manufacturing are expected to be first out of the gate as companies finally gain enough confidence to begin making big-ticket purchases again.
State’s Jobless Rate Now 12.5 Percent
California’s unemployment rate reached 12.5 percent in October, its highest level since December 1940, according to the Bureau of Labor Statistics. With more workers resuming their job search, expansion of the labor pool caused 15 states to post record jobless rates last month. CA has the fourth-worst unemployment in the country, behind Michigan, Nevada and Rhode Island. However, no other state comes close to California’s 687,700 jobs lost over the past year. Florida and Texas are the next biggest losers at 339,600 and 307,200 respectively.
Startup Jobs Concentrated in California
The Golden State offers the most opportunities with venture-backed startups, according to StartUpHire.com. Of 11,000 job openings tracked nationwide, 4200 (39 percent) were in California. Startup jobs are available in all 50 states, according to National Venture Capital Association president Marc Heesen. "These companies start small, but soon grow to be significant job creators and contributors to local economies."
Mortgage Restructuring Produces Hiring Boom
With almost 7 million households 30 days overdue or already in the foreclosure process, mortgage restructuring for strapped homeowners has generated a rare job-growth area. Bank of America, Citigroup, JP Morgan Chase and Wells Fargo have collectively added almost 17,000 staffers this year, and new companies formed in response to the home-mortgage crisis are hiring as well. With defaults on the increase, many intend to keep adding staff.
On the Job Front
NATIONWIDE – AOL announced the layoff of 2500 employees, or about a third of its workforce, from volunteer buyouts across the company in sales, communications, maps, technology and the ad network.
CALISTOGA – Almost one year after laying off 78 percent of its workers, Calistoga Beverage will be permanently closing its plant, laying off the remaining 24 employees. The plant has been bottling Calistoga’s sparkling mineral water since 1924. The parent company will continue to produce organic fruit juice drinks, bottled in Southern CA.
CARMEL – Quail Lodge closed its 97-room hotel and spa last week, laying off more than 100 employees. The resort’s restaurant and golf course will remain open.
PETALUMA – The last of the county’s big RV dealerships, Hansel RV Center, is closing after 35 year in business, as consumer demand for big-ticket ‘toys’ has gone flat. Owner Henry Hansel is hoping to relocate the 18 employees to other dealerships within his Hansel Auto Group, the county’s largest car dealer.
REDWOOD CITY – On the heels of cutting 1500 jobs last week, video game company EA (Electronic Arts Inc) announced the closing of Pandemic Studios, laying off 200 more employees.
RICHMOND – Contra Costa County officials have given the Guidiville Band of Pomo Indians the green light to build the Bay Area’s first Las Vegas-style casino, which could generate thousands of jobs. The proposed $1.2-billion resort to be located at the old Point Molate Naval Fuel Depot just north of the Richmond-San Rafael Bridge, will include a conference center, two hotels, restaurants and shops, as well as the tribal headquarters and trails.
SACRAMENTO – The Society for the Blind will use stimulus funds to hire up to eight full- or part-time employees to staff a new program providing intensive training to seniors with vision loss.
SAN FRANCISCO – Current TV, the cable and Internet video channel co-founded by former Vice President Al Gore, has eliminated 80 jobs to accommodate changes in its programming strategy.
STOCKTON – Franklin Templeton Investments is opening a 25,000-square-foot operations facility in Massie Industrial Park. The global investment management firm will initially employ six workers, with the ability to expand to 150.
Obama Calls for Jobs Summit
In response to the US unemployment rate over 10 percent and stalled job growth, President Obama has called for a summit meeting on job creation next month, bringing together the small business community, chief executives, union representatives and economists to find solutions to the stagnation of job growth. The President acknowledged that even though stimulus spending had slowed the loss of jobs, the economy is not yet strong enough to promote job growth. "As I’ve said from the start of this crisis, hiring often takes time to catch up to economic growth. And given the magnitude of the economic turmoil that we’ve experienced, employers are reluctant to hire."
Record Jobless Rate for Teens
For the third month in a row, the jobless rate for teens (ages 16 to 19) nationwide reached a new high in October, 27.6 percent according to the US Labor Department. The participation rate (percentage of teens who work) also set a record of 36.2 percent, the lowest since record keeping began in 1948. The surge in teen unemployment is attributed to a growing number of adults competing for their jobs in industries such as food service and retail. Employers tend to sympathize more with the plight of older workers who have families and mortgages.