The East Bay Monthly Analysis is prepared by the East Bay
Economic Development Alliance staff to augment the East Bay Quarterly Forecast
authored by economists at the UCLA
Anderson Forecast.
East Bay EDA welcomes your comments and
suggestions. Please contact Stephanie Brown,
stephanie@eastbayeda.org or call
(510) 272-6843.
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THE EAST BAY IN FEBRUARY 2008
* The East Bay’s infrastructure-related construction employment expanded, while residential construction continued to contract
*
The East Bay’s government sector added 4,900 jobs between February 2007 and February 2008
* Home sales and median home values continued to decrease, with sale values falling 16 percent
lower than in February 2007
* Non-residential construction permit values increased slightly, with much of the activity being in the industrial sector
* Both single and multi-family residential construction permits continued to post annual decreases
NOTE: Our next Monthly Analysis will reflect the EDD’s complete 2008 Benchmark of Labor Force, Unemployment and Employed residents. Payroll/Industry employment numbers used in this report have been benchmarked and are up to date.
BAY AREA UNEMPLOYMENT The unemployment rate in the East Bay was 5.1 percent in February 2008, down from 5.3 percent in January, and above the year-ago estimate of 4.7 percent. This compares with a rate of 6.1 percent for California and 5.2 percent for the nation during the same period. The unemployment rate was 5.1 percent in Alameda County and 5.2 percent in Contra Costa County.
Unemployment rates in the Bay Area’s other metro areas also declined between January and February. San Francisco’s unemployment rate fell from 4.3 percent in January to 4.1 percent in February, while unemployment in San Jose fell from 5.3 to 5.2 percent. Unemployment rates in both regions were up from February 2007 estimates, when the rate in San Francisco was 3.9 percent and 4.7 percent in San Jose.
MONTHLY COMPARISON
According to the California Employment Development Department, the total number of jobs increased by 3,400 to reach 1,037,400 between January and February 2008.
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Government increased by 2,200 jobs, with local public schools (up 1,500 jobs) and state schools (up 500 jobs) accounting for the bulk of the total, reflecting the seasonal upward trend that occurs at the end of winter break.
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Private educational and health services increased by 1,800 jobs, with schools (up 1,500 jobs) accounting for most of the total, also indicative of the seasonal upward trend that occurs at the end of winter break.
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Professional and business services rose by 900 jobs, while other services increased by 400 jobs.
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Leisure and hospitality gained 300 jobs, below its average 800-job increase from January to February over the prior 18 years.
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On the downside, the trade, transportation, and utilities industry fell by 2,300 jobs. With the normal extended period of layoffs from the winter holiday shopping season, retail trade (down 2,100 jobs) accounted for most of the total loss.
A total of 3,989 new and resale houses and condos sold in the nine- county Bay Area in February. That was up 11.2 percent from 3,586 in January, and down 36.7 percent from 6,305 for February 2007, DataQuick Information Systems reported.
The median price paid for a Bay Area home was $548,000 last month, down 0.4 percent from $550,000 in January, and down 11.6 percent from $620,000 in February last year. Last month's median was 17.6 percent lower than the peak median of $665,000 reached last June and July.
Between January and February 2008, the dollar value of residential construction permits fell $9 million in the East
Bay, and fell $89 million in San Francisco and $18 million in San Jose. When comparing February 2007 and February 2008, permit values the East Bay decreased $118 million, while San Jose fell $34 million. In San Francisco, permit values were $12 million higher than in February 2007.
With the exception of the Vallejo-Fairfield and Napa regions, non-residential permit values increased between January and February 2008 around the Bay Area. In the East Bay, values were up $15 million over January, while San Francisco gained $125 million and San Jose gained $45 million. When compared with February 2007, permit values were up in all Bay Area regions, with the East Bay issuing $25 million more in non-residential permits, San Francisco issuing $164 million more and San Jose $53 million more.
