CA Starts to Turn a Corner; NV Continues Steady Recovery

Magnifying glass on newspaper

California’s labor market is finally beginning to turn a corner as a noticeable number of individuals start re-entering the labor force (adults who are willing and able to work) — which is key to its economic recovery, although there is still a long way to go. Meanwhile, Nevada’s job market continued its steady recovery and has much ground to gain.

(Register for the 2021 “Your Economy—Your Credit Union” virtual conference on Tuesday, July 20th!)

The following are the latest year-over-year and monthly April figures released this week by the California Employment Development Department (EDD) and the Nevada Employment, Training and Rehabilitation Department (DETR):

California’s April 2021 Employment Numbers

The California report shows the state’s unemployment rate remained 8.3 percent in April 2021 (from a “readjusted” 8.3 percent in March 2021) — and is down from its 16 percent peak in April 2020. Employers added nearly 102,000 non-farm monthly payroll jobs in April:

  • California’s labor force (pool of individuals willing and able to work) shot up by more than 363,000 in April 2021 from a year ago and now sits at nearly 19 million. However, it still remains about -400,000 below its pre-pandemic level in February 2020 of 19.4 million.
  • California has now regained 48 percent (more than 1.3 million jobs) of the approximate 2.7 million jobs lost during March and April of 2020.
  • The total number of Californians holding jobs (non-farm payroll, agriculture related, independent contractor/freelancers) was nearly 17.4 million, which is up 1.75 million from the combined “total” employment this time last year.
  • Non-farm company payroll jobs now total nearly 16.25 million. These jobs (a subset of “total” jobs) increased by 1.3 million (8.7 percent) from April 2020 to April 2021 compared to a U.S. annual gain of 10.9 percent (the state is playing catch-up to the rest of the nation after suffering from above-average unemployment for many months on end).
  • Seven of California’s 11 industry sectors gained jobs in April. Leisure and hospitality (62,800) continued to display the state’s largest month-over increase thanks in large part to the full-service restaurant sub-category. Professional and business services (19,000) also posted a large gain thanks to strength in the sub-category of professional, scientific and technical services, as did “other” services (10,500) with an increase in the personal care services sub-category.
  • Leisure/hospitality and “other services” (combined) account for nearly two-thirds of California’s job gains over the past three months.
  • Information (-3,500) saw the largest month-over industry sector loss, largely due to a decrease in the software publisher sub-category.

Nevada’s April 2021 Employment Numbers

The Nevada report shows employment in Nevada is up 17,100 jobs in April 2021, but it's still down by -133,000 jobs over the past 12 months (compared to April 2020). It’s a large gap continuing to close very slowly as individuals re-enter the labor force (pool of people saying they are willing and able to work).

The state’s April 2021 unemployment rate stands at 8 percent, down from a “readjusted” 8.1 percent in March but still up from 3.7 percent in February of 2020 (pre-pandemic economy). The state’s total number of jobs is up 196,200 from April 2020 – April 2021 (an 18 percent increase), with total employment now at more than 1.3 million.

The state added jobs for the 12th consecutive month in April:

  • Las Vegas employment increased by 8,400 jobs (0.9 percent) since March 2021 (month before) and increased 152,100 jobs (20 percent) since April 2020.
  • Reno/Sparks regional employment actually decreased by 300 jobs (-0.1 percent) since March 2021 (month before) but increased 30,200 jobs (14 percent) since April 2020.
  • Carson City employment increased by 100 jobs (0.3 percent) since March 2021 (month before) and increased 3,000 jobs (11 percent) since April 2020.
  • This time last year, Nevada was in the early stages of the largest business shutdown in the state’s history. Unemployment was nearly 30 percent, with more than 400,000 Nevadans out of work.
  • In April of 2021, the state remains on the path to recovery, but many areas are still experiencing significant disruptions.
  • Nevada’s job additions in April are the biggest month-to-month jump since September of 2020 and roughly double the typical March-to-April change.
  • This month’s employment gains were led by accommodation and food services, concentrated in the Las Vegas area as restaurants and hotel casinos ramp up hiring with COVID-19 restrictions easing.
  • Reno’s construction industry and manufacturing in Las Vegas also realized notable job gains, as businesses, homebuilders, and real estate professionals try to meet the demand of a strong housing market.

Pin It