It's the summer of 2022 in Sacramento. COVID restrictions have been lifted and community events are back. But inflation is on the rise and many people are worried about the state of the economy, jobs, and how to pay the bills. Is it a summer to celebrate? Or a time for concern?
What Does Sacramento's Job Market Look Like?
California is the 5th largest economy in the world; its GDP surpasses the United Kingdom.
While CA's economy and job market saw some hits during the pandemic, it has bounced back to pre-pandemic rates. Employers added 42,900 new jobs in May 2022, lowering the unemployment rate to 4.3%, the lowest rate since February 2020, just before the state shut down many businesses and lost more than 2.7 million jobs due to the pandemic.
According to the State of California Employee Development Department, combined employment from Sacramento and its surrounding counties increased by 4,400 jobs to 1,060,700 jobs between April and May 2022.
Sacramento Job Growth
What sectors are seeing growth in Sacramento? According to the most recent EDD reporting period (May 2022):
Employment in education and health services continued to trend up in May, adding 1,600 jobs.
- Healthcare and social assistance (up 1,500 jobs) were responsible for 94% of the growth.
- Government employment increased for the third consecutive month, picking up 1,600 jobs.
- Gains were reported in local government (up 1,100 jobs), state government (up 400 jobs), and federal government (up 100 jobs).
- Leisure and hospitality rose by 700 jobs from April to May. Accommodation and food services were responsible for the growth. This is the fourth consecutive month of job expansion for this industry.
Sacramento Jobs Loss
Not every sector is seeing growth. The three industries that reported month-over job decline included:
- professional and business services (down 300 jobs)
- financial activities (down 200 jobs)
- trade, transportation, and utilities (down 100 jobs)
Across the state, California retailers, specifically general merchandise stores, lost 3,700 jobs in May, the most of any industry — a sign consumer demand could be slowing.
"My advice for job seekers or anyone who may still be on the sidelines or looking for work: Now is the time to try to get back in. It’s going to get more difficult," said Michael Bernick, research director for the California Workforce Association and an attorney with the Duane Morris law firm.
Increases in Jobs and Wages Impacts Housing in Sacramento
Sacramento's increase in jobs and wages has impacted housing availability and affordability in the State’s Capital.
Mark Vitner, managing director and senior economist at Wells Fargo & Co., told the Sacramento Business Journal a "perfect storm" of factors are pushing rents to all-time highs, including the strong job market, increased wages, and higher demand for new apartments.
Affordable housing solutions are on the way in Sacramento to help families and individuals impacted by the region’s high housing prices.
In the Sacramento Railyards development, two of three multi-family projects, the AJ and the Wong Center, will bring more affordable housing to the area.
The 345-unit AJ includes a mix of market-rate and affordable units and is set to open later this year at Sixth Street and Railyards Boulevard.
The Wong Center is an entirely affordable project of 150 units for seniors involving affordable housing developer Mutual Housing California, planned for south of AJ at 631 F St. (The 3rd Railyards project, Telegrapher, consists entirely of market-rate housing between Fifth and Sixth streets and south of Railyards Boulevard.)
Read more: The Railyards Breaks Ground on Senior Affordable Housing Project
Blog Image courtesy of Arturo Rodriquez