*Mixed messages on L.A. jobs

November's unemployment rate jumped to 12.9 percent, from 12.6 percent the previous month - and a half-point above the state rate of 12.4 percent. But in a separate survey, the number of payroll jobs increased by 16,500, which compares with only 11,600 new jobs for the entire state. This is the third straight month the county has added jobs. So how can there be additional work and yet a higher unemployment rate? The most obvious explanation is that more people in L.A. are getting back into the labor pool, presumably hopeful that the market is starting to improve. The puzzler is why the state number was so low. The job gains for L.A. cover lots of categories - retail, local government (huh?), entertainment, and educational and health services. Losses were largely in leisure and hospitality and construction. Manufacturing lost only 100 jobs. All of which would suggest that despite the unexpected increases in the jobless rate, L.A.'s employment situation might be improving marginally.

*Chris Thornberg at Beacon Economics has another possible explanation for L.A.'s mixed jobs report: An expanding labor force. If the number of new jobs is not enough to offset the number of new workers, unemployment will still rise.


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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