California Labor Report (February/March 2024)

Star Staffing Labor Report

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 January 2024 (released in early March).

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Included in this Report

  1. Takeaways from experts on this month’s trends
  2. California labor highlights (unemployment rates, industry details, etc.)
  3. Interpreting the data
  4. This month’s work culture news 
  5. Detailed Report: California unemployment rates by county
  6. Detailed Report: California resignation rates
  7. California labor law news and policy changes (if applicable)
  8. Great reads and resources

 

Expert Takeaways

 

“That strong wage growth number, while it’s good news for workers, isn’t necessarily bad news for employers —or for inflation —because productivity growth has been so strong, so it actually may be sustainable.”
– Julia Pollak, chief economist at ZipRecruiter, speaking to MSNBC

 

“The economy remains strong, held up by a robust labor market. The labor market remains rock solid.”
Christopher Rupkey, chief economist with FwdBonds to CNN 

 

California Labor Market Highlights

 

Statewide: 5.2%

MoM: Up 0.1% compared to last month

YoY: Up 0.7% compared to January 2023

 

Other highlights:

  • Another slight rise in California’s unemployment rate (+0.2%), but the California jobs market continued to expand for its 45th month in a row (yowza!). (Source: edd.ca.gov)

 

  • That means California accounts for 16.5 percent of the nation’s 353,000 overall job gain. (Source: edd.ca.gov)

 

  • Annual data revisions (which is also why this labor report comes in early March versus end of February), resulted in a downgrade of California’s nonfarm jobs by about 232,000. The good news: nonfarm jobs in California rose in January by about 58,000, according to the California Center for Jobs & the Economy.

 

  • The center also reported that, while California’s unemployment rate is up this month (and the highest since January 2022), we’ve seen a constant up-down-up-down pattern with unemployment over the last year.

 

Around the U.S.: 

  • The national labor market added 275,000 jobs in February, “a sign that economic growth is still solid,” reports the New York Times.

 

  • The quit rate is slowing down — we’re now at a rate below pre-pandemic levels. (via Indeed)

 

  • Encouraging sign: The share of workers ages 25-54 with a job rose in February. (also via Indeed)

 

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Interpreting the Data

All eyes (in California) will be on next month’s (and several months thereafter) employment reports. Job gains appeared strong this month despite the adjusted numbers telling a more pessimistic story of the end of 2023. We’re waiting for more details in the next round of employment data, which will be released at the end of the month.

 

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Hiring & Work Culture Trends

  • The strong YOY wage growth between 2023 and 2024 is good for employees but also for employers and inflation, according to MSNBC.

 

  • In a recent Robert Half survey, 42% of employers said their top hiring challenge is the lack of candidates applying for open roles, and 58% reported that it’s taking longer to hire for open roles compared to a year ago.

 

 

 

 

  • According to CNN Business, experts predict that the growth in the health care, leisure and hospitality, and government sectors will continue “with plenty of room to grow.”

 

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Northern California Unemployment Rates by County

 

Alameda County: 5.0% (up from 4.5% in December)

Alameda, Oakland, Hayward, Berkeley, San Leandro, Livermore, Pleasanton, Dublin

 

Marin County: 4.1% (up from 3.7 in Dec.)

Larkspur, Mill Valley, Novato, San Rafael

 

Napa County: 4.6% (up from 3.9% in Dec.)

Napa, Yountville, St. Helena, Calistoga, American Canyon, Angwin

 

Sacramento County: 5.3% (up from 4.7% in Dec.)

Sacramento, Elk Grove, Rancho Cordova, Folsom, Citrus Heights, Fair Oaks

 

San Joaquin County: 7.5%  (up from 6.8%)

Stockton, Lodi, Tracy, Manteca, Ripon, Lathrop

 

Sonoma County: 4.5% (up from 3.8%)

Sonoma, Santa Rosa, Petaluma, Healdsburg, Rohnert Park, Sebastopol, Windsor, Bodega Bay

 

Solano County: 5.7% (up from 5.1%)

Fairfield, Vacaville, Vallejo, Benicia, Suisun City, Dixon, Rio Vista

 

Stanislaus County: 7.6% (up from 6.9%)

Ceres, Modesto, Oakdale, Patterson, Riverbank, Salida, Turlock

 

Yolo County: 6.1% (up from 5.3%)

Davis, West Sacramento, Woodland

 

Note: For Southern California unemployment rates, see edd.ca.gov.

 

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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 yea (up from 24 hours or three days). Some cities or regions in California may require employers to provide additional sick leave. (More details.)

 

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Related Articles and Resources

From Star Staffing

Here are a few of the articles we published on hiring trends and California labor last month.

 



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Star Staffing is a woman-owned, award-winning recruiting and temp hiring firm with 6 branch locations throughout California.

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