In October, for the first time since a societal fallout from the COVID-19 pandemic recession, California finally regained the 2.76 million non-farm payroll jobs its economy lost in spring of 2020 — although its labor force is approximately -100,000 smaller today. Meanwhile, Nevada’s job market continues hitting new record highs after fully recovering this past summer.

The following are the latest year-over-year and month-over October trends published by the California Employment Development Department (EDD) and the Nevada Employment Training and Rehabilitation Department (DETR) — released in late November:

California’s October 2022 Employment Numbers
The California report shows the state’s unemployment rate increased to 4 percent in October 2022 (from a “readjusted” 3.8 percent in September 2022). For context, the state’s unemployment rate hit 16.1 percent at one point during the COVID-19 pandemic in 2020.

California employers added 56,700 non-farm monthly payroll jobs in October 2022:

• California’s labor force (pool of individuals willing and able to work) increased by 255,100 in October 2022 from a year ago and now sits at nearly 19.3 million. However, it remains approximately -100,000 below its pre-pandemic level in February 2020 of nearly 19.4 million.
• In October 2022, California (for the first time since the COVID-19 pandemic) finally and fully regained the 2.76 million non-farm payroll jobs lost during March and April of 2020 when pandemic recession transpired (gaining nearly 2.8 million jobs since then).
• The total number of Californians holding jobs (non-farm payroll, agriculture related, independent contractor/freelancers) was more than 18.5 million, which is up 642,100 from the combined total employment this time last year.
• Non-farm company payroll jobs now total 17.72 million. These jobs (a subset of “total” jobs) increased by 695,500 (4.1 percent) from October 2021 to October 2022 compared to a U.S. annual gain of 3.6 percent.
• Eight of California’s 11 industry sectors gained jobs in October. Education and health services (16,800) showed the largest month-over gains thanks to above-average gains in outpatient care services, nursing care facilities, and individual and family services.
• Professional and business services (16,400) also experienced strong growth thanks, in part, to above average gains in accounting and tax preparation and bookkeeping services.
• Government (-8,700) again led the way in job losses, with a third consecutive decline specifically in state government and a second straight month of losses in local government.
  
  

Nevada’s October 2022 Employment Numbers
The Nevada report shows employment in the state is up 7,500 jobs in October 2022, and it’s also up 55,500 jobs from a year ago (a 3.9 percent annual increase).

Total non-farm employment (payroll and independent-contract jobs combined) hit a new record high of 1.47 million individuals. When it comes to payroll employment specifically, June 2022 was the first month Nevada’s job market finally closed the gap inflicted since the COVID-19 recession in 2020.

Nevada’s October 2022 unemployment rate stands at 4.6 percent (from a “readjusted” 4.4 percent in September), which is up from 3.7 percent in February of 2020 (pre-pandemic economy). For context, the state’s unemployment rate hit 28.2 percent at one point during the COVID-19 pandemic in 2020.

At the local/regional level, Nevada employers added the following jobs in October 2022:

• Las Vegas-area employment increased by 0.7 percent (1,900 jobs) from September to October 2022 (month before) and by 11,600 jobs (4.7 percent) since October 2021.
• Reno/Sparks-area employment decreased by -0.2 percent (-500 jobs) from September to October 2022 (month before) and by 7,300 jobs (2.9 percent) since October 2021.
• Carson City-area employment increased by 0.3 percent (100 jobs) from September to October 2022 (month before) and by 800 jobs (2.6 percent) since October 2021.
• The gain in jobs in October was one of the higher levels in the past year.
• The state’s unemployment rate mirrored the national trend, rising slightly as labor force participation increased to its highest level this year.
  
  

Ongoing Labor Market Perspective
These California and Nevada job market recoveries don’t account for lost ground and opportunity costs coming out of the COVID-19 pandemic.

Specifically in California, the state’s labor force — the pool of individuals willing and able to work — shrunk drastically due to public health restrictions and concerns, policy and employer decisions, the volatile business environment, federal and state financial relief, and worker fluidity in a tight labor market.

Essentially, both California and Nevada job markets may have been even more robust by 2022 if COVID-19 never impacted the economy and policy decisions, assuming no other negative financial or economic events transpired.

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