Merced County unemployment hits eight-year low; poverty rate remains stagnant

Merced County’s unemployment rate fell to less than double digits for the first time in eight years, the Employment Development Department reported Friday.

The data showed an unemployment rate of 9.7 percent in August in the county.

August’s figure is also 1.6 percent lower than the year-ago estimate, according to the department’s analysis.

In July, the jobless rate in the county was 10.6 percent.

The last time Merced County’s unemployment rate was in the single digits was October 2007, according to Steven Gutierrez, labor market analyst with EDD.

According to the data released Friday, 2,600 jobs were added in the county in August, the majority in the government sector. Gutierrez said that jobs spike was due, at least in part, to school staff returning to work after summer recess.

Job growth in the farming sector also helped bring down the unemployment rate with the addition of 400 jobs. This is common for the time of year, Gutierrez said, as many Valley areas see a rise in farm jobs during the summer.

The trade industry, including retail jobs, added another 100 jobs in August.

California’s unemployment rate dropped to 6.1 percent in August, slightly down from 6.2 percent in July.

News of growth in employment may bring hope to some, especially after data released earlier this week by the U.S. Census Bureau showed poverty levels in Merced County remain stagnant.

According to the census’s American Community Survey, 25.2 percent of people in Merced County live below the poverty threshold, which is about $24,000 for a family of four. The county reported that same percentage in 2013.

Of those in poverty last year, 34.2 percent were unemployed. But nearly 6 percent worked full time and year round, and still fell below the poverty line, according to the data.

In the city of Merced, the poverty rate in 2014 was estimated at 30.7 percent That was a 5 percent drop from 2013.

Merced Mayor Stan Thurston said this makes sense as he has seen a boost in economic activity in the past year.

“An improving economy is going to help that statistic, but we still need to keep trying to get more businesses to come into town,” he said.

Thurston pointed out the new call center under construction on Park Avenue and a new carwash on G Street that will be rolling into town soon.

“That’ll be adding more employment,” he said.

In California, 16.4 percent of people live in poverty. That’s nearly 1 in 6 people, according to the survey.

For children, this rate jumps to 22.7 percent, meaning 1 in 5 in California are poor. In Merced County, about 38 percent of children live in poverty.

About 10 percent of the county’s elderly also fall below the poverty line, the data show.

The numbers also reveal that nearly 29 percent of Latinos and 29 percent of blacks in Merced County live in poverty, compared with about 15 percent of whites.

This story was originally published September 18, 2015 at 6:50 PM with the headline "Merced County unemployment hits eight-year low; poverty rate remains stagnant."