Revised Employment Numbers Show Mixed Picture of Workforce Health
Unemployment climbed back up to 9.3%. End of year revisions to local job numbers, combined with the optimistic return of people to the labor market forced down the Workforce Index for both December, 2011 and January, 2012. At 86.26 in November, 2011 the Index had been at its highest point since November of 2008. January’s revised employment figures led to a drop in the Workforce Index to 83.98, only 2.4% higher than March of 2011. Meanwhile, the region’s economy showed improvement.
"A better job market means more people returning to the labor force and higher unemployment rates," noted David Narevsky, Business Analyst for the Workforce Partnership, "Unfortunately, in the last two months we have seen the job market shrink a bit in San Diego, while nationally people are hearing the good news of the recovery. We were hit with the double whammy of rising expectations and some labor market contraction. But, we are very encouraged by the positive economic reports that indicate more hiring in the future," he added.
The Index is a compilation of a range of economic indicators that provide a month-to-month record of the status of the workforce in San Diego County. A reading of 100 indicates “full employment” where the labor market is in equilibrium. A reading greater than 100 might indicate a shortage of workers or an overheated economy. A reading of less than 100 would indicate a slowdown in the local economy and might reflect a shortage of employment opportunities.
For more information on the Workforce Index please contact Research Director Chuck Flacks chuckflacksworkforce [dot] org.