According to new state employment data, the year-over-year Orange County unemployment rate posted an annual drop in May from 3.2% to 2.6% as the month-to-month rate remained relatively unchanged with only 100 nonfarm jobs added. That’s a considerable drop-off compared to April, when 9,100 nonfarm jobs were added. May marked the third month in a row that the civilian labor force declined.
Medical offices and hospitals led the pack in terms of year-over-year job growth by building type. The market added 8,500 medical professionals and healthcare workers, a 4.5% jump. Despite office employment dropping by 2,400, down 0.5% from April, 7,400 jobs were added year-over-year, up 1.5%, thanks to OC’s popularity with office users. The region’s abundance of recreational destinations and theme parks led to a 3.9% year-over-year rise in hospitality employment. Industrial users reported flat month-over-month jobs growth and a 500-job, or 0.1%, decrease year-over-year. The single largest decrease in jobs was at retail/food services facilities, which dropped 1,500 positions year-over-year, down 0.5%. The closure of several large retail locations in the OC region led by Sears and Kmart is likely to blame for the decrease.
OC is on track this year to remain a tight jobs market. The current unemployment rate is well below the state Employment Development Department’s 3.2% estimate last year and will likely outpace the state and the country in the months to come.
— Analysis by CBRE Group Inc.
