Los Angeles unemployment is currently at 7.6 percent, on a non-seasonally adjusted basis. This is unchanged from the previous month and down 0.8 percentage points from last year, according to the most recent Los Angeles jobs report. This month’s statewide report puts California’s overall unemployment rate in April at 6.3 percent, down 1.5 percentage points from the previous year.
The Golden State as a whole added 29,500 nonfarm positions during April, showing a 2.9 percent increase over the past year. Professional and business service jobs had the largest increase for the year, adding 119,500 jobs.
The total number of Los Angeles jobs increased by 9,600 from the month prior, according to the monthly jobs report. The professional and business services sector added 4,100 jobs in April and 10,400 jobs over the past year. Let’s see what these numbers mean for the Los Angeles jobs market.
Robert Half senior district president Brett Good called Westside job growth “an early accelerator; now, all geographies are experiencing the increase.” Regarding unemployment trends, Good said, “unemployment rates are lower in the Valley and in Orange County, so we anticipate the greater Los Angeles County rates will continue to fall over time.” Good expects the numbers for Los Angeles unemployment to eventually sync up with the state and national rates.
Lower Los Angeles unemployment rates mean more hiring, but fewer candidates looking for jobs, which creates staffing challenges. Hiring managers should move quickly when they find suitable candidates, but not too quickly. Good encourages management to consider the cost of a hastily made hiring decision. As outlined in a recent Robert Half survey, the negative impact of a bad hiring decision on staff is immediate. When someone has to be let go because of poor performance or workplace fit, it creates extra work for other employees, which in turn depresses morale. In order to attract the best hires, employers need to make certain they’re offering competitive starting salaries and benefits, as well as perks such as telecommuting options.
Has your organization seen increased hiring this quarter? Let others know in the comments.