Each month, Star Staffing, a California-based staffing agency compiles new data and shares expert insights on the state of hiring in California. This labor report covers the most recent employment data from August 2024 (released in late September).
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A Note from Star Staffing’s CEO
It is critical for organizations to stay attuned to the trends in the labor market. The landscape of work is constantly evolving, and by keeping a close eye on these changes, businesses can make informed decisions that position companies for long-term success. Understanding labor market trends allows us to anticipate shifts in talent availability, adapt to new workforce expectations, and ensure that we remain competitive in attracting and retaining top talent.
Moreover, by monitoring these trends, we can proactively address potential challenges, such as skills shortages or changes in employee preferences, and align our strategies with the needs of the modern workforce. In a rapidly changing world, our ability to thrive depends on our awareness of and responsiveness to the forces shaping the labor market. It’s not just about staying ahead—it’s about building a resilient, forward-thinking organization that is prepared for whatever the future holds.
– Lisa Lichty, Owner & CEO
Included in this Report
- Takeaways from experts on this month’s trends
- California labor highlights (unemployment rates, industry details, etc.)
- This month’s work culture news
- Detailed Report: California unemployment rates by county
- California labor law news and policy changes (if applicable)
- Great reads and resources
Expert Takeaways
“California is an economic powerhouse, nationally and globally.” – Public Policy Institute of California report
“California’s growth is powered by its workers and innovators, the driving forces behind our consistent economic growth and expanding job market.” – Governor Gavin Newsom
“On balance, [U.S.] consumers are on firmer footing than previously thought given the upward annual revisions to income growth. While a moderating labor market is still a risk to the spending outlook, solid demand conditions help abate concerns that the labor market is deteriorating rapidly. As long as layoffs are not widespread, we expect households to keep spending.” – Sam Bullard, managing director and senior economist for Wells Fargo’s corporate and investment banking group, in an interview with U.S News and Report
California Labor Market Highlights
Statewide: 5.3%
MoM: Same as last month
YoY: Up 0.3% compared to September 2023
Other California Highlights:
- Since May 2020, California has averaged a gain of ~60,000 jobs per month. (Source: edd.ca.gov)
- The Leisure & Hospitality sector — one of Star Staffing’s industry specialities — has retained a solid year-over-year growth rate, despite the fact that, last month, the sector lost about 3,700 jobs in the Arts, Entertainment, & Recreation subcategory (Source: Also edd.ca.gov)
- While California’s statewide unemployment rate stayed about the same, all of the Northern California counties that Star Staffing supports with hiring saw drops in their unemployment rates last month. For a detailed breakdown of each county, scroll down to the “By County” section of this report.
- The California Center for Jobs & the Economy reported that September numbers were “positive but again at relatively modest levels,” just as it reported last month. It also voiced concern about California’s unemployment rate — although that rate remained the same last month, the number of unemployed Californians has been above one million for nine straight months, which the Center for Jobs reports, is the highest level since 2021’s pandemic period.
- A new Public Policy Institute of California report led with much more positive news, noting that “California is an economic powerhouse, nationally and globally.” The report found that California comprises 14% of the U.S. GDP and that California’s economy ranks 5th internationally, behind the US, China, Germany, and Japan.
- Gov. Gavin Newsom’s gas prices bill, designed to prevent price spikes for California consumers, has been the subject of much debate in the legislature this month, as well as amongst labor unions, economists, and refiners. The bill passed and was signed by Newsom on October 14. (Source: CalMatters and ca.gov)
Around the U.S.:
- According to the Bureau of Labor Statistics (BLS), the U.S. unemployment rate stayed about the same as last month at 4.1%.
- Also from the BLS, “employment continued to trend up in food services and drinking places, health care, government, social assistance, and construction.“
- According to the ADP, while employers added 99,000 jobs in August, that number was below the forecast, hinting at signs of a weakening job market.
- The U.S. labor shortage is not going away, says U.S. News and Report, in part due to an aging population.
- Even though inflation was higher in September than expected, it’s trending down, marking a continued cooling. (also U.S. News and Report)
Hiring & Work Culture News & Trends
- For the first time since 2014, California beat out New York and Texas for having the most Fortune 500 companies of any state, including 35 of the world’s 50 leading AI companies. (Fortune – gated)
- Travel spending in California hit an all-time high of $150.4 billion last year, well above the previous record of $144.9 billion in 2019, a great sign for the state’s travel and hospitality industries. (Source: ca.gov)
- Investigative Report: How has remote work affected migration around California? (Public Policy Institute of California)
- Are you in the American middle class? The Pew Research Institute released a simple calculator to help you find out.
- Only one-in-four U.S. adults now believe that it’s “extremely or very important” to have a four-year college degree in order to get a well-paying job in today’s economy.
Northern California Unemployment Rates by County
*Note: Not seasonally adjusted.
Alameda County: 4.7% (down 0.5% MoM)
Alameda, Oakland, Hayward, Berkeley, San Leandro, Livermore, Pleasanton, Dublin
Marin County: 3.8% (down 0.3%)
Larkspur, Mill Valley, Novato, San Rafael
Napa County: 3.9% (down 0.4%)
Napa, Yountville, St. Helena, Calistoga, American Canyon, Angwin
Sacramento County: 4.9% (down 0.4%)
Sacramento, Elk Grove, Rancho Cordova, Folsom, Citrus Heights, Fair Oaks
San Joaquin County: 6.1% (down 0.7%)
Stockton, Lodi, Tracy, Manteca, Ripon, Lathrop
Sonoma County: 4.0% (down 0.5%)
Sonoma, Santa Rosa, Petaluma, Healdsburg, Rohnert Park, Sebastopol, Windsor, Bodega Bay
Solano County: 5.1% (down 0.5%)
Fairfield, Vacaville, Vallejo, Benicia, Suisun City, Dixon, Rio Vista
Stanislaus County: 6.3% (down 0.7%)
Ceres, Modesto, Oakdale, Patterson, Riverbank, Salida, Turlock
Yolo County: 4.9% (down 0.5%)
Davis, West Sacramento, Woodland
Note: For Southern California unemployment rates, see edd.ca.gov.
California Labor Law/Policy Changes (2024)
Minimum Wage Increase
California’s minimum wage increased to $16/hour on Jan. 1, 2024. (More details.)
Paid Sick Leave Increase
As of January 1, 2024, California’s paid sick leave law has been expanded. Employers must allow workers to use at least 40 hours or five days of paid sick leave per year (up from 24 hours or three days). Some cities or regions in California may require employers to provide additional sick leave. (More details.)
Related Articles and Resources
From Star Staffing
Here are a few of the articles we published on hiring trends and California labor last month.
- 25+ Work-Appropriate Halloween Costumes — For Office Parties to Zoom Calls
- How to Implement Successful Change Management Techniques
- What to Expect When You Use a Direct Hire Staffing Agency
- 4 Unexpected Benefits of Using a Staffing Firm Over In-House Teams
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Star Staffing is a woman-owned, award-winning recruiting and temp hiring firm with 6 branch locations throughout California.