O.C. Jobless Rate Falls to 5.4% in August : 1,200 Jobs Added, Led by Services

SANTA ANA — Orange County’s jobless rate fell to 5.4% in August from a revised 6% in July, as the local economy sustained its modest recovery by adding 1,200 jobs last month.

The report Friday by the state’s Employment Development Department showed the county gained jobs last month in services, construction, retail trade and manufacturing. These more than offset seasonal payroll cuts in government.

Overall, the state counted a total of 73,600 Orange County workers as jobless last month--down from 81,300 in July and 79,700 in August of 1994, when the unemployment rate was 5.9%.

“The economy is showing expansion,” said Esmael Adibi, a Chapman University economist. But he noted: “The expansion is anemic.”

Through the first eight months of this year, the county added an average of 9,000 jobs from the same period of 1994, according to Adibi. Were it not for the weak national economy and the county’s lingering problems with bankruptcy, Adibi said, the county would have done much better.

Despite the tepid pace of growth, Orange County continued to outperform other areas in Southern California. The August jobless rate for Los Angeles County was 8.6%, and it was 11% for Riverside County and 7.6% for San Bernardino County.

California’s unemployment rate, as previously reported, dipped to 7.8% from 7.9% in July, and the national rate dropped to 5.6% from 5.7%. Unlike the county figures, state and national rates are adjusted for seasonal variations.

Most of Orange County’s job gains and losses last month were seasonally related, and that is what accounts for the volatile jobless rate from month to month.

The services sector added 1,200 jobs last month, with temporary-help firms and businesses such as automotive repair services leading the way in hiring.

Construction was up by 1,000 jobs last month, and the retail trade division grew by 600, with apparel firms accounting for much of that.

In a positive sign, the county’s manufacturing employment grew by 400 between July and August. Adding further evidence that manufacturers are getting more orders, a separate report by the state Friday showed factory workers in the county put in an average of 42.1 hours a week last month, up from 41.7 in July and 41 hours in August, 1994.

Even so, total manufacturing employment in the county remains 1,500 jobs short of August of last year.

Another hopeful note was that the county’s finance, insurance and real estate sector held steady in August, despite taking a pounding in recent months. Because of the weak real estate market and restructuring at banks and insurance companies, employment in this sector is down about 4,000 from a year ago.

Government payrolls have also thinned since last year. In August, 117,700 people worked in federal, state and local government offices in Orange County. That was 1,600 fewer workers than a year ago in August, some of which were the result of the county’s bankruptcy.

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Jobless Rate Drops

Orange County’s unemployment rate dropped from 6.0% in July to 5.4% in August, the lowest rate since April and half a percentage point lower than last August. Monthly unemployment rate:

AUG. 1995: 5.4

Gains and Losses

Total non-farm employment in August improved 8,400 compared to last August, with the bulk of the increase coming in the services and wholesale trade sectors. Three-fourths of the losses were in finance, government and manufacturing. Gains and losses compared to last August:

Gains

Services: 7,200

Wholesale trade: 4,100

Construction: 1,500

Transportation: 1,200

Communications/public utilities: 1,100

Retail trade: 500

Losses

Finance: 2,300

Government: 1,600

Manufacturing: 1,500

Real estate: 900

Insurance: 800

Mining: 100

Source: California Employment Development Department