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California’s unemployment rate increased by 0.1 percentage point in January 2023

Published:

NR No. 23-09
Contact: Loree Levy/Aubrey Henry
916-654-9029
mediainquiries@edd.ca.gov

IMPORTANT NOTE: The employment data for the month of January 2023 is taken from the survey week including Jan. 12th. Data for the month of February is scheduled for release on March 24, 2023. These statistics reflect updates to 2022 monthly data performed during EDD’s annual benchmark process.

Employers added 96,700 nonfarm payroll jobs

California’s unemployment rate crept up slightly for the month of January 2023 to 4.2 percent1 despite the state’s employers adding 96,700 nonfarm payroll jobs2 to the economy, according to data released today by the California Employment Development Department (EDD) from two surveys.

The California unemployment rate was 4.2 percent in January 23, up 0.1 percent from December 2022’s rate of 4.1 percent.California payroll jobs totaled 17,996,400 in January 2023, up 96,700 from December 2022 and up 599,500 from January of last year.

California’s Labor Market, by the Numbers...

  • Updated data shows California fully recovered its nearly 2.8 million pandemic related job losses earlier in June 2022 rather than October 2022 as originally estimated, and the peak unemployment rate of 16.1% hit earlier in April 2020 rather than May.
  • Of the 517,000 jobs gained nationally in January 2023, California accounted for 96,700, or nearly 19 percent, of the nation’s overall non-farm job growth.
  • Eight of California’s 11 industry sectors gained jobs in January with Government (+46,000) leading the way with strong gains in State Government Educational Services, boosted by the end of the University of California academic workers strike in December.
  • Leisure & Hospitality (+20,800) also enjoyed an extremely strong month-over gain thanks, in part, to very good gains in not just Gambling Industries, but also in Performing Arts, Spectator Sports, and Talent and Sports Agents.
  • Construction (-7,300) suffered the California’s largest month-over job loss for January 2023 due, in part, to the severe winter storms and extreme weather across the state, as well as from reductions in the Specialty Trade Contractors subsector.

1. The unemployment rate comes from a separate federal survey of 5,100 California households.

2. The nonfarm payroll job numbers come from a federal survey of 80,000 California businesses.

Data Trends about Jobs in the Economy

Total Nonfarm Payroll Jobs

Total Nonfarm Payroll Jobs (Comes from a monthly survey of approximately 80,000 California businesses that estimates jobs in the economy – seasonally adjusted)

  • Month-over – Total nonfarm jobs in California’s 11 major industries totaled 17,966,400 in January – a net gain of 96,700 from December. This followed a post-benchmarking upward revised (+107,800) month-over gain of 124,000 jobs in December.
  • Year-over – Total nonfarm jobs increased by 599,500 (a 3.5 percent increase) from January 2022 to January 2023 compared to the U.S. annual gain 4,967,000 jobs (a 3.3 percent increase).

ca-industries-202301x.jpg

 

Major Industries Month-over Change (December 2022–January 2023) Year-over Change (January 2022–January 2023) Total Payroll Jobs as of January 2023

Government

+46,000 +50,600 2,561,200

Leisure and Hospitality

+20,800 +170,100 2,010,800
Trade, Transp., Utilities +19,900 +46,100 3,143,800

Education and Health Services

+11,000 +151,600 3,023,300

Professional and Business Services

+9,500 +98,100 2,919,200

Manufacturing

+2,100 +31,900 1,348,200

Other Services

+1,800 +28,900 577,400

Mining and Logging

+100 +800 20,200
Financial Activities  -2,200 +2,300 847,000

Information

-5,000 +6,700 602,100

Construction

-7,300 +12,400 913,200

 

Total Farm jobs – The number of jobs in the agriculture industry decreased from December by 2,400 to a total of 434,400 jobs in January. The agricultural industry had 21,000 more farm jobs in January 2023 than it did in January a year ago.

Data Trends about Workers in the Economy

Employment and Unemployment in California (Based on a monthly federal survey of 5,100 California households which focuses on workers in the economy)

  • Employed – The number of Californians employed in January was 18,503,400, an increase of 21,300 persons from December’s total of 18,482,100 and up 297,600 from the employment total in January 2022.
  • Unemployed – The number of unemployed Californians was 813,800 in January, an increase of 23,500 over the month, but down 180,400 in comparison to January 2022.
ca-laborforce-202301.jpg
California Labor Force Month-over Change (December 2022–January 2023) Year-over Change (January 2022–January 2023)
* Civilian Labor Force (19,317,100) +44,700 +117,100
Total Civilian Employment (18,503,400) +21,300 +297,600
Unemployment (813,800) +23,500 -180,400

* Labor force by place of residence, including workers involved in trade disputes.

Unemployment Insurance Claims (Not Seasonally Adjusted)

The following data is from a sample week that includes the 19th of each month: In related data that figures into the state’s unemployment rate, there were 368,865 people certifying for Unemployment Insurance benefits during the January 2023 sample week. That compares to 326,252 people in December and 412,738 people in January 2022. Concurrently, 48,150 initial claims were processed in the January 2023 sample week, which was a month-over increase of 6,600 claims from December, but a year-over decrease of 6,249 claims from January 2022.

ca_ui_claims-202301.jpg

California Unemployment Insurance Claims Month-over Change (December 2022–January 2023) Year-over Change (January 2022–January 2023)
UI Recipients (368,865) +42,613 -43,873
New UI Claims (48,150) +6,600 -6,249
MONTHLY LABOR FORCE DATA FOR COUNTIES
January 2023 (Preliminary); 2022 Benchmark
NOT SEASONALLY ADJUSTED
COUNTY LABOR FORCE EMPLOYMENT UNEMPLOYMENT RATE
STATE TOTAL 19,278,100 18,383,800 894,400 4.6%
ALAMEDA 824,400 794,300 30,100 3.6%
ALPINE 630 600 30 4.9%
AMADOR 14,220 13,420 800 5.6%
BUTTE 92,100 86,900 5,200 5.6%
CALAVERAS 22,150 21,130 1,010 4.6%
COLUSA 10,100 8,330 1,770 17.5%
CONTRA COSTA 550,600 529,200 21,400 3.9%
DEL NORTE 9,190 8,610 580 6.3%
EL DORADO 93,400 89,800 3,700 3.9%
FRESNO 458,200 423,600 34,600 7.5%
GLENN 12,870 11,950 920 7.1%
HUMBOLDT 59,380 56,510 2,870 4.8%
IMPERIAL 72,100 60,400 11,700 16.2%
INYO 8,230 7,880 350 4.3%
KERN 394,400 362,500 31,900 8.1%
KINGS 57,300 52,300 5,000 8.7%
LAKE 28,560 26,630 1,920 6.7%
LASSEN 8,950 8,410 540 6.0%
LOS ANGELES 4,985,200 4,739,300 246,000 4.9%
MADERA 65,800 60,900 5,000 7.5%
MARIN 130,800 126,800 4,000 3.1%
MARIPOSA 6,950 6,540 410 5.8%
MENDOCINO 36,890 34,890 2,000 5.4%
MERCED 115,300 104,100 11,200 9.7%
MODOC 3,120 2,840 280 9.0%
MONO 8,760 8,410 350 4.0%
MONTEREY 217,600 198,400 19,200 8.8%
NAPA 70,700 67,900 2,800 3.9%
NEVADA 49,000 47,040 1,960 4.0%
ORANGE 1,595,100 1,541,300 53,800 3.4%
PLACER 194,000 187,000 7,000 3.6%
PLUMAS 6,970 6,260 710 10.1%
RIVERSIDE 1,152,300 1,100,500 51,800 4.5%
SACRAMENTO 728,900 696,300 32,500 4.5%
SAN BENITO 32,670 30,640 2,030 6.2%
SAN BERNARDINO 1,007,700 963,600 44,200 4.4%
SAN DIEGO 1,600,000 1,541,300 58,800 3.7%
SAN FRANCISCO 575,900 559,600 16,200 2.8%
SAN JOAQUIN 344,200 322,500 21,700 6.3%
SAN LUIS OBISPO 137,200 132,500 4,700 3.5%
SAN MATEO 455,700 443,700 12,000 2.6%
SANTA BARBARA 220,300 210,300 9,900 4.5%
SANTA CLARA 1,046,600 1,015,700 30,900 3.0%
SANTA CRUZ 132,100 123,900 8,200 6.2%
SHASTA 73,900 69,700 4,200 5.7%
SIERRA 1,260 1,190 80 5.9%
SISKIYOU 16,360 15,120 1,240 7.6%
SOLANO 201,300 191,700 9,600 4.8%
SONOMA 248,600 239,700 8,900 3.6%
STANISLAUS 242,200 226,400 15,800 6.5%
SUTTER 46,000 41,900 4,100 8.8%
TEHAMA 25,580 24,000 1,580 6.2%
TRINITY 4,450 4,130 320 7.2%
TULARE 208,400 187,700 20,700 9.9%
TUOLUMNE 19,600 18,600 1,100 5.4%
VENTURA 413,300 395,900 17,400 4.2%
YOLO 109,100 103,600 5,500 5.0%
YUBA 31,800 29,500 2,300 7.2%