Unemployment rate rises slightly to 8.1% in SD County

SAN DIEGO (CNS) - The unemployment rate in San Diego County rose to 8.1% in January, a slight increase from December's 8% and well above the 3.4% rate from a year ago, prior to the COVID-19 pandemic, according to figures released today by the state Employment Development Department.

This compares with an unadjusted unemployment rate of 9.2% for California and 6.8% for the nation during the same period.

But the numbers may not show the whole picture, jobs experts warn.

"December's jobless rate was only able to remain stable because people dropped out of the workforce,'' said Lynn Reaser, chief economist for

Point Loma Nazarene University. "More women left to help with their children's schooling, while others became discouraged.''

Between December 2020 and January 2021, total non-farm employment in San Diego County decreased by 38,600, from 1,389,500 to1,350,900. Agricultural employment had no change and remained at 8,400. Many of those losses were seasonal jobs, said Phil Blair, executive officer of Manpower West.

"The next few months will be a roller coaster on the job front,'' Blair said. ``Restaurants, hotels and other businesses will jumpstart their hiring but may struggle to find all the workers they need.''

Leisure and hospitality led all month-over decline with a loss of 12,200 jobs. The cutback was primarily in accommodation and food services -- down 11,500 jobs — specifically in food services and drinking places — down 10,100 jobs, according to the agency. Arts, entertainment and recreation jobs posted a loss of 700 jobs.

Trade, transportation and utilities decreased by 8,900 jobs. Retail trade led the decline, losing 6,300. Transportation, warehousing and utilities — down 2,300 jobs — and wholesale trade — down 300 — also contributed to the overall contraction.

Reaser said there is reason to hope things will improve rapidly moving forward.

``A powerful combination of widespread vaccination, government spending, support from the Federal Reserve, easing of lockdown restrictions and pent-up demand should fuel a vigorous expansion beginning in the spring and accelerating through year-end,'' she said.

Seven other sectors dropped over the month including construction, with 5,900 jobs lost; professional and business services, 4,500 lost; government, 3,200 lost; educational and health services 2,800 lost; other services, 900 lost; information, 200 lost; and financial activities losing 100 jobs.

Manufacturing was the only industry to post job gains, adding 100. Mining and logging remained unchanged

Between January 2020 and January 2021, non-farm employment fell by 153,700, or 10.2%. Agricultural employment decreased by 500, or 5.6%.

Leisure and hospitality recorded the largest year-over-year drop, declining by 77,100 jobs. Accommodation and food services made up 81% of the

overall cut-back — down 62,600 jobs. Arts, entertainment and recreation saw a reduction of 14,500 jobs.

Other services fell by 16,600 jobs year-over-year while government lost 16,000 jobs. The bulk of the decline was in local government, down 14,100 jobs. State government lost 1,900 jobs. Federal government payrolls remained unchanged.

All other industries declined over the year.