‘Overall, it’s hopeful.’ Merced County workforce off to a strong start in 2022, data shows
Merced County’s workforce is starting the new year stronger than the year before, according to the latest January employment numbers released by the California Employment Development Department (EDD) Friday.
Merced County’s unemployment in January last year was reported at 12.6%. But according to EDD estimates, Merced County joblessness this January this year clocked in lower at 9.7%.
That’s the same unemployment rate approximated for Merced County in January 2020, before the COVID-19 pandemic’s full force upset the local and global economy.
In contrast, a month after the COVID-19 pandemic began, the county reported unemployment at 18.8% in April 2020.
Every industry either gained jobs or saw no change between January 2021 and 2022, EDD numbers for Merced County show. That means that no industry saw its labor force decrease locally within the last year.
The tourism and hospitality industry, one of COVID-19’s hardest-hit sectors, gained 1,500 jobs between this January and last. Government saw the second biggest rebound with 1,000 jobs. All other industries saw gains measuring in the 100s, with the exception of the information and financial activities industries, which saw no year-over change.
Although Merced County’s January unemployment is up from December’s rate of 8.1%, EDD Labor Market Analyst Steven Gutierrez told the Sun-Star that the rise is likely due to expected downward seasonal shifts for certain industries.
Farm employment typically sees a drop during the winter season, as does the trade, transportation and utilities industry after the holidays wrap up, Gutierrez said. “This is the normal lull that we’re going to see in regards to some of those industries.”
Farm-related jobs declined by 400 between December and January, as did the trade, transportation and utilities industry. Manufacturing, as well as leisure and hospitality, saw smaller losses.
Merced County’s government sector saw the largest month-over loss of 500 jobs, largely related to state government education. The decline can likely be attributed to positions temporarily disappearing during college winter breaks, Gutierrez said.
Experts on the economy have been predicting a more permanent economic recovery in 2022, Gutierrez said, but noted that many uncertainties will dictate how the year ultimately plays out. Although the state of the COVID-19 pandemic has largely improved, soaring gasoline prices, inflation and California’s drought could offset economic optimism.
California’s average gas price was $5.72 per gallon on Friday, while the national average was $4.33 per gallon, according to AAA. The average price for gas in Merced on Friday was $5.56, AAA reported.
Between January and February, grocery costs jumped 1.4% — the sharpest one-month increase since 1990, other than during a pandemic-induced price surge two years ago.
Those price hikes could mean Californians spend more of their discretionary income on necessities like gas and groceries rather than luxury items like retail goods, Gutierrez said.
Plus, the statewide drought could have further impacts on the economy. A recent report led by UC Merced researchers estimated that the drought cost the state’s agriculture sector about $1.1 billion and nearly 8,750 full- and part-time jobs last year.
“It’s going to be interesting to see how this season plays out,” Gutierrez said. “Overall, it is hopeful that we’ll continue to see employment growth across (Merced) County.”
Statewide unemployment was estimated at 5.5% in January and 4.4% nationally, according to the EDD. While those averages are lower than local joblessness, other Valley counties ranked similarly to Merced County:
- Tulare County: 9.5% unemployment in January, up from 8.1% in December.
- Fresno County: 8.1% unemployment, up from 6.9%.
- Kings County: 8.9% unemployment, up from 7.5%.
- Madera County: 7.7% unemployment, up from 6.6%.
