Merced County employment doing slightly better than statewide average, latest data shows
Merced County’s unemployment picture has shown more signs of recovery, despite the coronavirus pandemic causing a sudden surge of job losses in April, according to the latest Employment Development Department numbers released Friday.
In an irregular move for the county, where unemployment historically tends to double California’s average, Merced County’s unemployment rate fell from 14.4% in July to 11.3% in August — just below the overall state’s rate of 11.4%.
Statewide, August’s unemployment rate of 11.4% was the first time since March that California’s joblessness fell lower than the 12.3% mark set during the height of the Great Recession in 2010.
Still, strains on the local economy due to state-mandated closures amid the pandemic mean joblessness continues to hover noticeably high. In August 2019, Merced County unemployment was 7.2%.
August kicked off a notable time of year for labor analysts, as it marks the period when employment typically soars to its highest point annually.
Because of seasonal gains in agriculture-related jobs and educators returning to work for the beginning of school, unemployment usually falls to its lowest point during August through October, said EDD Labor Market Analyst Steven Gutierrez.
“If things go like they normally do — of course nothing is normal now — as we get into the fall and early part of winter, that’s usually when your agriculture goes dormant and slows down,” Gutierrez said.
Gains reported
Just two economic industries in Merced County saw job loss between July and August, according to EDD estimates. Mining, logging and construction lost 100 jobs, as did leisure and hospitality.
All other industries saw gains or no change.
Government-related jobs saw the largest increase in August locally, with the addition of 2,400 jobs. Much of this is traced to federal government workers hired for the 2020 census, according to the EDD.
Trade, transportation and utilities increased by 300 jobs. Manufacturing, plus educational and health services, each rose by 200. Financial activities saw an increase of 100 jobs.
“Month over job gains came from the areas where we usually have normal seasonal growth,” Gutierrez said of Merced County.
However, compared to August 2019, almost every industry is still reporting job losses in the hundreds to thousands. Only financial activities remained the same.
Leisure and hospitality — which encompasses many of the economic industries at least partially shuttered amid the pandemic, like movie theaters, restaurants and hotels — continues to experience the most significant year-over job loss. The industry is down 1,500 jobs compared to last August.
Even farm-related jobs, which have largely buoyed Merced County’s economy in recent months, reported a loss of 500 jobs, according to the EDD.
And as agricultural work slows come winter, Gutierrez said the job losses will have a trickle-down effect in other industries. For example, manufacturing may lose work in the way of food manufacturing.
“I think everyone is concerned about what will happen during the cold winter months,” Gutierrez said.
This story was originally published September 19, 2020 at 5:00 AM.
