Merced County’s 12.6% February jobless rate lowest since 2007

Merced County’s employment picture continued to improve in February, with the jobless rate hitting its lowest point for the month in nine years.

Figures released Friday showed the county’s unemployment rate last month was 12.6 percent, the lowest it has been in February since it was 12 percent in 2007, according to the state Employment Development Department.

Nevertheless, the region’s unemployment continues to be much higher than it is for the state or nation overall. California’s statewide jobless rate was reported to be 5.5 percent in February. Within the state, the highest unemployment rate was reported in Colusa County at 21.6 percent and the lowest was in Marin County, with 3.2 percent.

The national unemployment rate last month was reported at 4.9 percent, down from 5.5 percent one year ago and from 6.7 percent in February 2014, according to the U.S. Bureau of Labor Statistics.

Merced County’s rate for February was a slight improvement from the revised figure reported for January. The government sector alone added 1,100 jobs from January to February, a reflection of classified school employees returning from the winter break, said Steven Gutierrez, a labor analyst for the EDD’s Fresno office. Manufacturing added 200 jobs, and the leisure sector added another 100.

However, construction jobs fell by 100, and trade jobs decreased by 200 from January to February. “These estimates follow the area’s seasonal trends when we have lower employment in the winter months,” Gutierrez said.

The seasonal lull is felt throughout much of the San Joaquin Valley, he said.

February’s jobless rate for the county was lower than the same time last year, when 13.9 percent of the county’s labor force was unemployed. The sector with the largest increase in employment over the year was manufacturing, which has added 1,300 jobs since then.

“With spring around the corner, hopefully this sector will continue to see growth,” Gutierrez said.

The manufacturing sector in Merced County is strongly connected to foods and farming, he said.

The falling unemployment rate is welcome news, said Mark Hendrickson, director of the county’s Community & Economic Development Department. He noted the county still has much work to do to continue the trend.

Manufacturing companies look toward Merced to do business, he said. “The (jobs) numbers do seem to suggest what we have seen for a while now, which is a great deal of interest in growing the manufacturing sector,” he said.

The EDD’s estimates of payroll jobs are based on a state survey of businesses, while the official unemployment rate is derived from a federal survey of households.

The number of unemployed in Merced County last month was estimated at 14,600, compared with 16,000 a year ago. Across the five-county Valley region, unemployment added up to about 98,800 – down from about 110,000 in February 2015.

The unemployment rate and the numbers of people counted as jobless are based on estimates of people who want jobs and are available to work but cannot find it. The figures don’t include students or retirees who aren’t looking for work, nor do they count people dubbed “discouraged workers” – often chronic or long-term unemployed who have given up their search for work.

This story was originally published March 18, 2016 at 3:49 PM with the headline "Merced County’s 12.6% February jobless rate lowest since 2007."