SACRAMENTO – Unemployment in California edged up slightly as the new year got under way, according to a Friday report, with state labor officials also noting an increase in non-farm payroll jobs.

The California Employment Development Department's (EDD) latest report looked at statewide unemployment numbers. Reports on Lake and the other 57 counties in California is due out Wednesday.

The EDD reported that non-farm payroll jobs increased by 32,500 in January, with eight of 11 industry sectors showing gains, according to data from two separate surveys.

California's January unemployment rate was 12.5 percent, following an annual revision of monthly employment estimates.

In December, the state’s unemployment rate was a revised 12.3 percent, and in January 2009, the unemployment rate was 9.7 percent. The unemployment rate is derived from a federal survey of 5,500 California households.

The U.S. unemployment rate decreased in January, to 9.7 percent.

Nonfarm jobs in California totaled 13,842,100 in January, an increase of 32,500 over the month, according to a survey of businesses that is larger and less variable statistically. The survey of 42,000 California businesses measures jobs in the economy.

The year-over-year change (January 2009 to January 2010) shows a decrease of 701,700 jobs – down 4.8 percent.

The federal survey of households, done with a smaller sample than the survey of employers, shows a decrease in the number of employed people. It estimates the number of Californians holding jobs in January was 15,850,000, a decrease of 18,000 from December, and down 735,000 from the employment total in January of last year.

The number of people unemployed in California was 2,266,000 – up by 32,000 over the month, and up by 488,000 compared with January of last year.

EDD’s report on payroll employment (wage and salary jobs) in the nonfarm industries of California totaled 13,842,100 in January, a net gain of 32,500 jobs since the December survey. This followed a loss of 41,200 jobs (as revised) in December.

Eight categories (mining and logging; construction; manufacturing; trade, transportation and utilities; educational and health services; leisure and hospitality; other services; and government) added jobs over the month, gaining 45,900 jobs.

Construction posted the largest increase over the month, adding 16,200 jobs.

Three categories (information; financial activities; and professional and business services) reported job declines this month, down 13,400 jobs. Information posted the largest decline over the month, down

by 12,100 jobs.

In a year-over-year comparison (January 2009 to January 2010), nonfarm payroll employment in California decreased by 701,700 jobs (down 4.8 percent).

One industry division, educational and health services, posted job gains over the year, adding 12,400 jobs (a 0.7 percent increase).

Ten categories (mining and logging; construction; manufacturing; trade, transportation and utilities; information; financial activities; professional and business services; leisure and hospitality; other services; and government) posted job declines over the year, down 714,100 jobs.

Trade, transportation and utilities employment showed the largest decline on a numerical basis, down by 148,900 jobs (a decline of 5.5 percent).

Construction posted the largest decline on a percentage basis, down by 18.0 percent (a decrease of 128,700 jobs).

In related data, the EDD reported that there were 717,070 people receiving regular unemployment insurance benefits during the January survey week. This compares with 792,764 last month and 717,525 last year.

At the same time, new claims for unemployment insurance were 92,738 in January 2010, compared with 80,873 in December and 75,514 in January of last year.

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