Unemployment Rates Declined in April 2006
The April 2006 unemployment rates in 11 selected California metropolitan areas (MSAs) declined compared to the rates in March 2006 and the rates a year ago. Napa MSA was an exception as its unemployment rate increased from 3.9% in March to 4.0% in April 2006. The increase could be driven by new labor force entrants struggling to find jobs or lay-offs from the construction and retail trade industries. Sacramento MSA also provides an interesting story. Despite a significant gain in the payroll jobs, the unemployment rate in the area declined only slightly from 4.7% to 4.6% between March and April 2006. The minor decline was mainly driven by a significant reduction in the labor force. This suggests that many working residents have moved from Sacramento MSA to another MSA during the month of April 2006.
Despite the changes, the landscape in the 11 metro areas remained unchanged with Merced, Fresno, Modesto, and Stockton MSAs posting higher unemployment rates. The four MSAs share a similar characteristic of having a large share of farm jobs, ranging from 5.2% in Stockton to 13.2% in Merced in April 2006.
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Graph of the Week, May 22, 2006, Business Forecasting Center, University of the Pacific
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