Unemployment Rises Again

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L.A. County’s unemployment rate jumped in September to yet another modern record high of 12.7 percent as the county’s tourism and film industries took significant job hits.

September’s 12.7 percent unemployment rate was up from 12.2 percent in August and 8.3 percent in September 2008; over the past year, more than 210,000 county residents have joined the ranks of the unemployed.

Statewide, the unemployment rate was 12.2 percent in September, down slightly from 12.3 percent in August but up from 7.8 percent a year ago. Nationally, the unemployment rate hit 9.8 percent in September.

Yet the county actually gained 19,000 payroll jobs in September from August, thanks entirely to a seasonal surge in teachers returning to school after summer recess. That was partially offset by drops in leisure and hospitality and film production. Overall, the modest 0.5 percent increase brought the payroll jobs total to nearly 3.9 million jobs.

The more closely-watched year-over-year payroll jobs figure, however, plunged by 164,000 jobs, or 4.1 percent. The manufacturing sector shed the most jobs, plunging 38,000 or 9 percent, followed by retail (down 19,400), professional and business services (off 19,000) and construction (down 17,700).

The payroll jobs data are submitted by companies to the state, while the unemployment rate is derived from more volatile household survey data and includes independent contractors, sole proprietors and the region’s huge informal workforce.

As has been the case for most of the last year, only private education and health services posted year-over-year job gains, of 6,800 jobs and 4,500 jobs respectively last month.

Locally, the cities of Los Angeles and Long Beach continue to be hit harder by the jobs slump; September’s unemployment rate reached 14 percent in Los Angeles and 13.9 percent in Long Beach.

The cities of Commerce and Compton posted the highest unemployment rates of 22 percent and 21 percent respectively. The City of Industry, Bell Gardens and Lynnwood had unemployment rates at or near 20 percent.

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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