State Unemployment Rate Increases to 12.5 Percent SACRAMENTO - California’s unemployment rate was 12.5 percent in October, and nonfarm payroll jobs increased by 25,700 during the month, according to data released today by the California Employment Development Department (EDD) from two separate surveys. The U.S. unemployment rate also increased in October, rising to 10.2 percent. In September, the state’s unemployment rate was a revised 12.3 percent, and in October 2008, the unemployment rate was 8.0 percent. The unemployment rate is derived from a federal survey of 5,500 California households. Nonfarm jobs in California totaled 14,199,000 in October, an increase of 25,700 over the month, according to a survey of businesses that is larger and less variable statistically. The survey of 42,000 California businesses measures jobs in the economy. The year-over-year change (October 2008 to October 2009) shows a decrease of 687,700 jobs (down 4.6 percent). EMPLOYMENT AND UNEMPLOYMENT IN CALIFORNIA The federal survey of households, done with a smaller sample than the survey of employers, shows a decrease in the number of employed people. It estimates the number of Californians holding jobs in October was 16,041,000, a decrease of 94,000 from September, and down 981,000 from the employment total in October of last year. The number of people unemployed in California was 2,293,000 – up by 36,000 over the month, and up by 808,000 compared with October of last year. PAYROLL EMPLOYMENT DETAIL (SEASONALLY ADJUSTED) EDD’s report on payroll employment (wage and salary jobs) in the nonfarm industries of California totaled 14,199,000 in October, a net gain of 25,700 jobs since the September survey. This followed a loss of 66,400 jobs (as revised) in September. Six categories (information; financial activities; professional and business services; educational and health services; leisure and hospitality; and government) added jobs over the month, gaining 48,600 jobs. Government posted the largest increase over the month, adding 13,400 jobs, but recording an average loss of 8,000 jobs a month over the past six months. Five categories (mining and logging; construction; manufacturing; trade, transportation and utilities; and other services) reported job declines this month, down 22,900 jobs. Manufacturing posted the largest decline over the month, down by 8,300 jobs. In a year-over-year comparison (October 2008 to October 2009), nonfarm payroll employment in California decreased by 687,700 jobs (down 4.6 percent). One industry division, educational and health services, posted job gains over the year, adding 23,500 jobs (a 1.4 percent increase). Ten categories (mining and logging; construction; manufacturing; trade, transportation and utilities; information; financial activities; professional and business services; leisure and hospitality; other services; and government) posted job declines over the year, down 711,200 jobs. Trade, transportation and utilities employment showed the largest decline on a numerical basis, down by 160,900 jobs (a decline of 5.7 percent). Construction posted the largest decline on a percentage basis, down by 18.2 percent (a decrease of 136,500 jobs). UNEMPLOYMENT INSURANCE CLAIMS (NOT SEASONALLY ADJUSTED) In related data, the EDD reported that there were 740,272 people receiving regular unemployment insurance benefits during the October survey week. This compares with 744,924 last month and 527,918 last year. At the same time, new claims for unemployment insurance were 83,475 in October 2009, compared with 69,160 in September and 67,491 in October of last year.

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