Where’s the strongest US job market? California ranks 11th best

”Survey says” appears at varied rankings and scorecards judging geographic places whereas noting these grades are greatest seen as a mixture of suave interpretation and information.

Buzz: The state recognized for playing was a employee’s greatest guess as 2021 ended because the financial system continued its restoration from the pandemic’s enterprise chill.

Source: My trusty spreadsheet reviewed one in all my favourite jobs numbers — the quarterly tally by the Bureau of Labor Statistics compiled from employers data, not a month-to-month survey. (So, it’s gradual to return out, however extra correct.)

For this scorecard, hiring and wage patterns have been mixed into “payroll progress,” in search of the states the place bosses elevated staffing and pay by the most important mixed quantity within the 12 months led to December.

Topline

Congrats, Nevada employees!

Your employers upped their collective paychecks within the fourth quarter by 18% vs. the tip of 2020 — a soar in employees and salaries greater than another state.

Then got here Florida at 17%, New Hampshire at 16.7%, Colorado at 14.5% and New York at 13%.

California ranked No. 11 at 12.6%. Rival Texas? No. 8 at 12.8%.

The nationwide low was Washington, D.C., at 6.2%, then Mississippi and Alaska at 7.3%, Missouri at 7.5% and Iowa at 7.6%.

Particulars

How did we get to those rankings? Have a look inside the information …

Let’s begin with hiring. California ranked No. 1 with 1.21 million jobs added in a yr. Subsequent was Texas with 748,100 new jobs, Florida at 580,300, New York at 504,100 and Illinois at 301,100.

However the first key rating issue is the hiring tempo— when the dimensions of the workforce is figured into the maths

California, the most important US job market, ranked third for progress at 7.4%. Don’t overlook, although, the reference level is late 2020 when the state was pretty locked down as a result of pandemic restrictions.

Prime job progress? Nevada at 11.5% and Hawaii at 9.2% topped California. (Does anyone discover a tourism theme right here?) Then got here New Jersey at 6.8%, and Florida at 6.7%. (Do folks willingly go to New Jersey?)

Sluggish growers have been Nebraska at 1.5%, then Oklahoma at 2.1% and Iowa at 2.2%. FYI: Texas was No. 10 at 6.1%.

The opposite issue within the rankings was the tempo of pay hikes. The largest 12-month soar in common weekly wages as of December was present in New Hampshire at 12.3%, then Florida at 9.7%, Colorado at 7.8%, North Carolina at 7.8% and Wyoming at 7.7%.

California ranked No. 37 at 4.8%. Texas was No. 17 at 6.3%.

Lows? Hawaii at 0.8%, then D.C. at 1%, Michigan at 2.7%, New Jersey at 3% and Massachusetts at 3.7%,

Backside line

The gyrations of the “enjoyable” companies inside this information — and different pay stats, too — can’t be ignored.

Keep in mind, massive gatherings returned to favor within the second half of 2021. But in addition observe the following rehiring spree was in sometimes low-paying leisure and hospitality industries.

California had the nation’s largest leisure and hospitality job additions, with 413,404 employees added in 12 months led to September, the newest comparable stats obtainable.

That was a noteworthy 39% of all job creation statewide. However 23 states had a bigger shares of hirings from these “enjoyable” companies: D.C. at 89%, then Vermont at 66% and Hawaii at 58%. Texas was No. 47 at 26% and Florida, No. 29 at 35%.

Subsequent, ponder the “enjoyable” trade’s common weekly wage in California of $723 — fourth-highest within the nation however 54% beneath the state’s total pay of $1,576.

And 37 states had bigger gaps together with North Dakota, Washington state, Nebraska and Iowa, at 62%. Texas? 60%. Florida? 47%.

It’s a very good guess that 2020’s lack of low-wage jobs in all probability overinflated that yr’s pay metrics. Conversely, 2021’s refilling of positions in these niches could also be understating what’s actually taking place with paychecks.

Postscript

It’s nearly time for mid-term elections and a referendum on President Joe Biden’s first two years within the White Home. And people vote with their wallets, sure?

Politically talking — defining “blue” vs. “crimson” states as those that supported Biden in his 2020 win vs. those that didn’t — the spreadsheet discovered blue states with 4.35 million hires final yr — 48% greater than crimson states. That’s 5.9% job progress vs. 4.3% for crimson.

Now blue-state employees get higher pay — $1,581 per week, 28% greater than crimson — however their 5.3% raises for 2021 have been beneath the 6.6% enhance present in crimson states.

Jonathan Lansner is the enterprise columnist for the Southern California Information Group. He might be reached at jlansner@scng.com