Jobless rate drops again in Merced County

The jobless rate in Merced County fell to 8.2 percent in September, the lowest it has been since 2007, a state agency reported Friday.

The California Employment Development Department said September was also the second month in a row that the rate has been at less than double-digit unemployment. The rate was also down from the same time last year, when it was 10.1 percent.

“That’s almost 2 percentage points there,” said Steven Gutierrez, a labor market analyst.

The decrease was buoyed by the addition of 2,100 government jobs in September compared with the previous month, which Gutierrez said could likely be attributed to school-related jobs starting back up with the new school year.

The county also added 1,200 seasonal farm labor jobs from August to September. Gutierrez said many other San Joaquin Valley counties are starting to lay off farm labor, making Merced County something of an outlier.

“It looks like the late harvest still continues to go on,” he said.

Tomatoes, almonds, peppers and other crops were still being harvested in September, according to Amanda Priest, executive director of the Merced County Farm Bureau.

The cotton and walnut harvests are coming up soon, she said. “I know a lot of my guys are saying they’re having a hard time finding (laborers),” she said.

Bob Giampaoli, 53, of Le Grand, president of the Merced County Farm Bureau, said his farming and packing operation continues to harvest tomatoes and bell peppers this time of year. He said harvesting is moving at a brisk pace, and he struggles to find enough labor for the amount of work in store.

“I think the overall labor pool and quality is getting a little harder,” he said.

Farm labor is not alone. Other industries are adding jobs. The manufacturing industry has added 200 jobs since August and the trade industry added 100.

The leisure and hospitality industry has added about 200 jobs compared with the same time last year, making that 41 consecutive months with year-over-year growth.

California’s unemployment rate fell to 5.9 percent in September, the lowest it’s been in nearly eight years as well, according to the EDD.

The EDD said the state’s jobless rate dropped two-tenths of a percentage point, down from 6.1 percent in August, as a result of payroll gains.

The national unemployment rate remained unchanged at 5.1 percent.

The last time California’s unemployment rate was 5.9 percent was in November 2007.

While the state’s job market continues to expand, it is growing at a slower pace. The agency said California added 8,200 jobs in September, following a gain of 42,000 jobs in August.

The state’s survey found 16,500 jobs were gained by construction; trade, transportation and utilities; information; professional and business services; leisure and hospitality; government; and other services.

But four categories – mining and logging, manufacturing, financial activities, and educational and health services – reported a loss of 8,300 jobs.

The overall number of people unemployed was down by 43,000 since August and stands at 1.1 million. That figure doesn’t include Californians who have stopped looking for work, or people working part time who would rather be working full time.

This story was originally published October 16, 2015 at 11:52 AM with the headline "Jobless rate drops again in Merced County."