SACRAMENTO – California’s unemployment rate jumped to 10.1 percent in January, and nonfarm payroll jobs declined by 79,300 during the month, according to data released Friday by the California Employment Development Department (EDD) from two separate surveys.

The U.S. unemployment rate also increased in January to 7.6 percent.

In December, the state’s unemployment rate was a revised 8.7 percent, and in January 2008, the unemployment rate was 6.1 percent. The unemployment rate is derived from a federal survey of 5,500 California households.

“The number of Californians without jobs and a means to provide for their families is a sobering reminder that there is nothing more important than getting California’s economy back on track,” Gov. Arnold Schwarzenegger said on Friday.

He added that the road to full economic recovery will not be short, but the economic stimulus measures in the state budget – combined with the federal economic recovery agenda – will help California create jobs while laying a strong foundation for better economic times ahead.

The number of nonfarm jobs in California decreased by 79,300 over the month, for a total of 14,648,100, according to the survey of 42,000 California businesses which measures jobs in the economy. This survey is larger and less variable statistically than the household survey. The year-over-year (January 2008 to January 2009) change shows a decrease of 494,000 jobs (down 3.3 percent).

EDD will release the January unemployment figures for counties next week.

Lake County's unemployment rate in December was 13.1 percent, as Lake County News has reported.

The federal survey of households shows a decrease in the number of employed people. It estimates the number of Californians holding jobs in January was 16,668,000, a decrease of 283,000 from December, and down 437,000 from the employment total in January of last year.

The number of people unemployed in California was 1,863,000 – up by 257,000 over the month, and up by 754,000 compared with January of last year.

Of the unemployed, 990,600 were laid off, 126,700 left their jobs voluntarily, and the remaining were either new entrants or reentrants into the labor market, or persons who completed temporary jobs, according to the federal household survey.

EDD’s report on payroll employment (wage and salary jobs) in the nonfarm industries of California totaled 14,648,100 in January, a net loss of 79,300 jobs since the January survey. This followed a loss of 84,400 jobs (as revised) in December.

Four categories (natural resources and mining; educational and health services; leisure and hospitality; and government) added jobs over the month, gaining 7,400 jobs. Educational and health services posted the largest gain over the month, up by 3,900 jobs. Seven categories (construction; manufacturing; trade, transportation and utilities; information; financial activities; professional and business services; and other services) reported job declines this month, down 86,700 jobs. Information

posted the largest decline over the month, down by 27,700 jobs.

In a year-over-year comparison (January 2008 to January 2009), nonfarm payroll employment in California decreased by 494,000 jobs (down 3.3 percent).

Three industry divisions (natural resources and mining; educational and health services; and government) posted job gains over the year, adding 43,000 jobs.

Educational and health services showed the strongest gain on both a numerical and percentage basis, adding 39,600 jobs (a 2.3 percent increase).

Eight categories (construction; manufacturing; trade, transportation and utilities; information; financial activities; professional and business services; leisure and hospitality; and other services) posted job declines over the year, down 537,000 jobs.

Trade, transportation and utilities employment showed the largest decline on a numerical basis, down by 145,000 jobs (a decline of 5.0 percent). Construction posted the largest decline on a percentage basis, down by 15.5 percent (a decrease of 130,800 jobs).

In related data, the EDD reported that there were 717,525 people receiving regular unemployment insurance benefits during the January survey week. This compares with 655,445 last month and 480,858 last year. At the same time, new claims for unemployment insurance were 75,514 in January 2009, compared with 87,979 in December and 57,364 in January of last year.

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