Merced County had more jobs in March, but jobless rate still among highest in state

There were 1,000 more jobs in Merced County in March than a year ago, pushing the unemployment rate down to 12.2 percent, the lowest March rate since 2007, labor market analysts said Friday.

Merced County tallied the largest gain in the “educational and health services” sector, which saw 600 more jobs, according to the Employment Development Department. Last year’s March jobless rate was 13 percent.

“With our aging population going on not only here but nationally, health care has seen a steady increase,” EDD analyst Steven Gutierrez said. “That’s probably going to continue.”

The “mining, logging and construction” and manufacturing sectors each added 300 jobs, while “trade, transportation and utilities” and “leisure and hospitality” each gained 200 jobs in March compared to the same time last year.

There were not gains across the board. Government dropped 400 jobs and “professional and business services” lost 200 jobs compared to last year, according to EDD.

Unemployment rates typically hit their peak in March in most San Joaquin Valley counties, Gutierrez said, but farms usually start harvesting again in April.

Merced County’s rate continues to be one of the highest in the state, ranking 54th out of 58 counties. Only Colusa (21.8 percent), Imperial (19.2 percent) Plumas (13 percent) and Tulare (12.3 percent) had higher jobless rates.

Statewide unemployment fell to 4.9 percent in March, down one-tenth percent from February, the EDD reported.

The economic growth in the state remains greater along the coast and in the Bay Area, according to Sung Won Sohn, an economist at California State University, Channel Islands. Wages have improved in many sectors, Sohn said in a note to reporters.

“In the lower wage sectors of the economy, slowdown in job growth is already evident as wages rise,” he said. “As the minimum wage has risen to $10.50 per hour from $10.00 beginning January, there will be fewer low-wage jobs created in the state.”

The federal government’s policies on health care and immigration may adversely affect the state in the near term, according to Jason Sisney, chief deputy at the state Legislative Analyst’s Office. The technology and agriculture sectors, for instance, rely largely on immigrant labor, while federal cutbacks to health insurance could threaten the booming medical industry.

“Whether or not the federal government will change those policies remain highly uncertain. We’re still waiting for Congress and President Trump,” Sisney said.

This story was originally published April 21, 2017 at 5:07 PM with the headline "Merced County had more jobs in March, but jobless rate still among highest in state."