California adds 6,800 jobs in October

Friday, Nov. 18, 2005 | 11:57 a.m.

THE HEADLINE - California's economy gained 6,800 payroll jobs in October, the state Employment Development Department said Friday.

More than 14.8 million people in the state held payroll jobs during the month (not including farm workers and the self-employed).

SHORT-TERM TREND - The state revised its October payroll jobs figure from a loss of 23,700 to a loss of 16,600, while also tallying a 7,100 dip in government payroll jobs for September.

Job creation seems to have slowed in the state as well as the nation.

California gained an average of almost 21,000 jobs per month in the first seven months of the year, said Howard Roth, chief economist of the California Department of Finance. That growth slowed to an average of about 10,000 jobs per month in the last three months, a rate Roth termed "tepid."

The U.S. economy added 56,000 payroll jobs in October, well short of the 100,000 many economists had expected.

MOVIE, NEWSPAPER JOBS CUT - The information sector, which includes motion picture industry and newspaper jobs, lost 2,700 jobs in October following a loss of 9,100 jobs in September.

That trend is likely to continue as studios tighten their belts and newspapers continue to cut back. In the past few weeks, The Los Angeles Times and The San Jose Mercury News announced job cuts. Warner Bros. also said it would cut staff at its Burbank lot.

"The DVD gravy train is slowing down and the studios are trimming their sails," said Jack Kyser, chief economist for the Los Angeles Economic Development Corp.

UNEMPLOYMENT RATE - The state's unemployment rate was 5.2 percent in October, up from 5.1 percent in September. A year ago, it was 6.0 percent.

FEWER JOB HUNTERS - About 936,000 Californians were looking for work last month, up 15,000 from September, but down 125,000 compared to October 2004.

THE OUTLOOK - Uncertainty over energy prices have caused many businesses to postpone hiring, Roth said. Recent reductions in energy costs might foreshadow more hiring in the coming months.

"With the improvement in energy prices, we might get some better gains in employment," Roth said.

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On the Net:

Employment Development Department: http://www.edd.ca.gov