SLO County unemployment dropped in November — but officials warn it could get worse again
The San Luis Obispo County unemployment rate fell in November, but officials are warning that the improvement could be short-lived.
According to the California Employment Development Department, SLO County’s jobless rate was 5.4% last month, down from 5.9% in October, but more than double the pre-pandemic rate of 2.5% in November 2019.
As of November, San Luis Obispo County has the seventh-lowest unemployment rate in California.
San Luis Obispo County Workforce Development Board officials say the latest rate is an indicator that “SLO County is slowly reaching its pre-pandemic conditions,” though they cautioned there “is much volatility to come” in the weeks ahead as the regional stay-at-home order could negatively impact businesses.
In the meantime, November’s labor market numbers represent a continuing improvement over the rest of 2020.
According to the data, roughly 1,700 fewer people were employed in SLO County in November than the month prior, but the overall labor force (people who can and want to work) also shrunk, leading to an improvement in the unemployment rate.
Meanwhile, several industries reported job increases in November.
The largest employment gains were made in the trade, transportation and utilities sector, which added 300 jobs in the past month.
According to the SLO County Workforce Development Board, there were no significant job losses reported between October and November.
The only sector to lose jobs was in farming, but that’s likely due to the seasonal nature of that industry, according to the release.
SLO County employment numbers still below 2019
Though November’s numbers were positive after a year of dismal data, compared with the 2019 numbers, the county is still in a tough spot.
The county’s Workforce Development Board says all industries have experienced year-over-year losses as of November.
Leisure and hospitality lost the most, with 5,100 fewer jobs in San Luis Obispo County in November 2020 than the same month in 2019.
Government lost 3,700 jobs, while manufacturing, trade, transportation and utilities, professional and business services, and educational and health services industries each lost 1,100 jobs year-over-year.
Financial activities lost the fewest jobs between 2019 and 2020, down only 100 as of November 2020.
In all, SLO County has lost 14,700 jobs in 2020, according to the Workforce Development Board.
How do local cities unemployment rates compare?
Unemployment rates across San Luis Obispo County cities and towns varied, according to the California Employment Development Department.
Due to smaller sizes, the city-by-city data can be subject to big fluctuations in employment rates.
San Miguel had the highest unemployment rate at 11.3%, while Templeton had the lowest at 2.5%.
Of the major cities in the county, Pismo Beach had the lowest unemployment rate with 3%, followed by Arroyo Grande with 4.7%, San Luis Obispo city with 5%, Atascadero with 5.3%, Paso Robles with 5.8% and Grover Beach with 6.8%.
Morro Bay had the worst unemployment rate of the larger local cities with 8.4% of the workforce being unemployed.
California jobless rate is higher than SLO County
Statewide, California’s economy continues to struggle through the COVID-19 pandemic, enduring the business shutdowns ordered by Gov. Gavin Newsom and embarrassing defections to Texas by some bright lights of Silicon Valley.
Friday’s numbers show California’s unemployment rate fell eight-tenths of a point in November, to 8.2%.
However, job growth totaled just 57,100, a little more than one-third as many jobs as were created a month earlier, signaling a slowdown in the recovery.
“This is the calm before the storm,” said Sung Won Sohn, professor of finance and economics at Loyola Marymount University.
November’s decline in the unemployment rate also was misleading, Sohn said, because it partly reflects that 627,000 Californians have dropped out of the job market since February because “the job outlook is so poor.” People who’ve halted their job search to go back to school, or stay home with their children, aren’t counted as unemployed.
All told, California has recaptured just 46% of the 2.6 million jobs that vanished in the first two months of the pandemic, the EDD said.
Scott Anderson, an economist with Bank of the West in San Francisco, forecast that statewide unemployment will remain well above 7% through 2022.
Michael Bernick, a San Francisco labor lawyer and former EDD director, said California is struggling more than the country as a whole economically, largely because Newsom has taken a harder line than most governors on business openings.
“We still have the most severe lockdowns,” Bernick said.
The so-so jobs figures come as the state’s economic reputation has taken a hit in recent weeks. On Wednesday the state revealed that population growth has slowed to practically nothing, and migration out of the state has jumped.
Newsom’s office, commenting on the latest unemployment figures, acknowledged the state’s difficult economic outlook and urged Congress to pass another stimulus package.
“With hope now literally in sight as the vaccine is rolled out, we’re continuing our fight to help businesses and working people in California get back on their feet,” said Dee Dee Myers, the new director of the state Office of Business and Economic Development, and Labor Secretary Julie Su, in a joint statement.
“But as the state faces the ongoing challenge of this pandemic-induced recession, we need to provide financial resources and other support to people so they can stand up their businesses, create jobs, and support their families as we put the economy back together in an equitable and sustainable way. We call on the federal government to do its part to help us recover.”
This story was originally published December 18, 2020 at 1:41 PM.
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