Merced County’s jobless rate dips slightly

Merced County’s unemployment rate dipped in June to 10.5 percent, a drop of four-tenths of a percentage point since May, according to the latest numbers from the Employment Development Department.

The rate was also down in June compared to the same time last year, when it was 12 percent. June’s jobless rate was the lowest it has been this time of year since 2007, according to Diane Patterson, the Central Valley region manager with EDD.

The rate remains well above June’s statewide average of 6.3 percent.

The roughly 1,000 jobs the county added since last year were split down the middle between farm and nonfarm labor, the numbers show.

Mining and government saw increases of 100 jobs each in June compared to May, while trade jobs increased by 200. Manufacturing increased as well at 100 more jobs in June than in May, but that is a slightly slower increase than the 10-year average.

“At least it’s seeing an upward trend instead of decreasing,” Patterson said.

Farm labor added 500 jobs from May to June, and the other industries in the county remained flat.

With a labor force of 116,300, according to EDD, Merced County was up by 400 people in June when compared to May. The labor force number includes those employed and those actively looking for work.

The unemployment rate drop in Merced County was comparable to the state figure, Patterson said.

California’s unemployment rate fell to 6.3 percent in June despite a moderation in job growth, state officials reported.

The EDD said the jobless rate fell a tenth of a percentage point from May, reflecting a steady but not stellar improvement in the job market. The new unemployment rate matches April’s and is the lowest since the economy began slipping into recession in February 2008.

Statewide, employers added 22,900 jobs in June, or about half as many as in May.

“June job growth was slower than in May but continued the pattern of steady, moderate growth,” said Stephen Levy of the Center for Continuing Study of the California Economy in a note to reporters.

Sung Won Sohn, economist at California State University, Channel Islands, noted that 17,000 Californians re-entered the labor force last month, a sign of economic vitality.

California’s job growth for the past year totals 461,800, a gain of 3 percent.

U.S. employers added 223,000 jobs in June compared to May, and the unemployment rate fell to 5.3 percent, a seven-year low. The numbers reflect a job market moving close to full health, and raise expectations that the Federal Reserve will start raising interest rates as early as September.

The Labor Department said this month the unemployment rate dropped from 5.5 percent in May. The rate fell mostly because many people out of work gave up on their job searches and were no longer counted as unemployed.

The Sacramento Bee and Associated Press contributed to this report.

This story was originally published July 20, 2015 at 4:59 PM with the headline "Merced County’s jobless rate dips slightly."