Sonoma County's falling unemployment rate buoys economists

The jobless rate in Sonoma County fell slightly in November to 6 percent, down from 6.1 percent in October, as seasonal job gains in the retail sector and other budding industries helped offset farm and manufacturing sector losses at the end of harvest and the peak tourism season.

The county's unemployment rate for November showed significant improvement from the year-ago jobless estimate of 7.7 percent, a sign the local economy continues to recover from its woes several years ago, observers said.

The total number of jobs in Sonoma County this November was 3,600 higher than the tally a year ago.

"The trajectory is a good one," said Ben Stone, executive director of the Sonoma County Economic Development Board. "Where we have layoffs it's mostly in seasonal industries. And if you look at the broad thrust of the recovery, our rankings in the state continue to get better."

Sonoma County is now among six counties with the lowest unemployment rates in California.

As usual, Marin County had the lowest jobless rate in the state, clocking in at 4.6 percent. Other counties rounding out the top six for job rates were San Mateo, San Francisco, Orange, Napa and San Luis Obispo counties.

Statewide, the unemployment rate decreased to 8.5 percent in November, down from 8.7 percent last month.

Unemployment in counties neighboring Sonoma rose over the period, with the loss of farm and tourism-related jobs outpacing any gains in other sectors.

In Napa County, the rate rose to 6 percent in November, up from 5.3 percent in October.

Lake County had the highest unemployment rate in the region with 12.2 percent, up from 11.6 percent in October. In Mendocino County the rate climbed to 7.4 percent, up from 7 percent.

Where those neighboring counties remain more exposed to seasonal job fluctuations, efforts to build diversity into Sonoma County's economy appear to be paying off, said Robert Eyler, director of Sonoma State University's Center for Regional Economic Analysis.

"Our tourism sector especially is now export-driven," attracting a steadier stream of year-round visitors and fueling other business, Eyler said.

The end of harvest did take its toll on Sonoma County, with the total number of jobs falling to 183,800 in November, down from 185,000 in October, mostly due to layoffs in the farm sector. Manufacturing, including food production, lost 600 jobs over the month, and the leisure and hospitality industry shed 200 jobs.

Construction shed 100 jobs last month but remained flat overall at 8,900 jobs, the same number as this time last year.

Linda Wong, North Bay labor market consultant for the state employment department, said the monthly losses were in line with averages for the area over the past decade.

Looking back 12 months, professional and business services posted the largest gain, adding a net of 1,100 jobs since last November. More than half came in employment services, including temp agencies, with other growth in tech and engineering jobs.

One local staffing company operator said business is booming.

"This year, 2013, has been the best year ever," said Nicole Smartt, co-owner and vice president of Star Staffing, headquartered in Petaluma. She said the supply of temporary employees for clerical and administrative posts was up 120 percent. Direct hiring is up nearly 90 percent, Smartt said.

Rebounding businesses are aiming to fill vacancies and need help doing it, she said. "The staffing industry is where its at. It's been booming for some time."

The leisure and hospitality industry tallied a net of 700 jobs since last November.

Annual job growth in government was even greater, with a reported net gain of 1,000 positions since this time last year. Hiring by local government and tribes led the way, with the recent hiring spree for the Graton Resort & Casino — owned by the Federated Indians of Graton Rancheria — likely fueling the numbers. The growth rate for local special district and tribal hiring, at almost 94 percent compared to last year, overshadowed all other sectors.

Though not without its critics, the Graton tribe's Rohnert Park casino is already making its economic mark, Eyler said.

"It's another part of the export-driven tourism sector," he said. "It provides some (economic) diversity for sure."

You can reach Staff Writer Brett Wilkison at 521-5295 or brett.wilkison@pressdemocrat.com.

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