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jobs, a 9.2% decline (see table on page 4). In contrast, the nation experienced a peak -to- trough job loss
<br />of 6.1% from December 2007 through December 2009.
<br />California's recession - driven job losses cut across industries but were heaviest in construction (see
<br />above). In 2007, between July and December five California industry sectors or sub sectors lost more
<br />than 200,000 jobs: construction (329,900), professional and business services (247,500), manufacturing
<br />(237,200), and retail trade (205,200). Three additional sectors lost over 85,000 jobs: financial activities
<br />(122,700), wholesale trade (94,100), and leisure and hospitality (86,000); educational and health
<br />services was the only sector that did not experience job losses over the period, gaining 70,500 jobs.
<br />Year -Over Changes in California Total Nonfarm and Industry Sector Jobs: December 2010 .
<br />(Seasonally Adjusted Data)
<br />Job losses in California's construction industry began earlier than in other industries and have lasted
<br />longer. The State lost 43.5% of its construction jobs from their peak in February 2006 through
<br />December 2010, for a loss of 412,700 jobs. In contrast, the nation lost 2,121,000 construction jobs from
<br />their peak in April 2006 through December 2006, a decline of 27.5%
<br />More recent signs suggest that economic conditions in the State are starting to improve. California
<br />gained 87,500 non -farm payrolls jobs over the year ending in December 2010. Moreover, job growth
<br />returned to many industries (see chart above). However, the jobs lost during the recession loom large
<br />over the economy. In December 2010, California had 1,305,500 fewer non -farm jobs than it had in July
<br />2007, and job totals in all industry sectors and sub - sectors with the exception of educational and health
<br />services were significantly lower than at the start of the recession.
<br />Although there are signs the economy is improving, reduced state tax revenues caused by the
<br />recession have dramatically reduced city, county, and special district revenues in California resulting in
<br />severe shortfalls to local general fund allocations. As a result, many public entities are being forced to
<br />5
<br />Change in Jobs
<br />December 2009
<br />December 2010
<br />Number Percent
<br />Total Nonfarrn Employment
<br />13,809,600
<br />13,897,100
<br />07,500
<br />0.6"6
<br />Mining and Logging
<br />24,100
<br />24,100
<br />0
<br />0 -0°0
<br />Construction
<br />560,500
<br />535.600
<br />- 32,900
<br />-5 -890
<br />PVlanufactu Fill g
<br />1,231 200
<br />1,244,100
<br />12.900
<br />1.0%
<br />Wiolesale Trade
<br />624,100
<br />621,300
<br />- 2,800
<br />-0 -4%
<br />Retail Trade
<br />1,4 84,600
<br />1,492,000
<br />7,400
<br />0.5%
<br />Transportation, Warehousing P Utilities
<br />464,000
<br />455,600
<br />-9,200
<br />-2 -0940
<br />Information
<br />449,500
<br />451,000
<br />1,500
<br />0.39j0
<br />Financial Activities
<br />782,500
<br />705,500
<br />3,000
<br />0A%
<br />Professional &. Business Services
<br />2.,018, 800
<br />2,085,700
<br />66,900
<br />3.3%
<br />Educational & Health Services
<br />1.747,200
<br />1,777,900
<br />30,700
<br />1.6 %a
<br />Leisure & Hospitality
<br />1,=4762.00
<br />1,502,900
<br />26,700
<br />1..89
<br />Other SarAces
<br />467,300
<br />472,300
<br />5,000
<br />1 -1%
<br />Government
<br />2:,470, 600
<br />2,449,100
<br />- 21,700
<br />-0 -9 °S
<br />Job losses in California's construction industry began earlier than in other industries and have lasted
<br />longer. The State lost 43.5% of its construction jobs from their peak in February 2006 through
<br />December 2010, for a loss of 412,700 jobs. In contrast, the nation lost 2,121,000 construction jobs from
<br />their peak in April 2006 through December 2006, a decline of 27.5%
<br />More recent signs suggest that economic conditions in the State are starting to improve. California
<br />gained 87,500 non -farm payrolls jobs over the year ending in December 2010. Moreover, job growth
<br />returned to many industries (see chart above). However, the jobs lost during the recession loom large
<br />over the economy. In December 2010, California had 1,305,500 fewer non -farm jobs than it had in July
<br />2007, and job totals in all industry sectors and sub - sectors with the exception of educational and health
<br />services were significantly lower than at the start of the recession.
<br />Although there are signs the economy is improving, reduced state tax revenues caused by the
<br />recession have dramatically reduced city, county, and special district revenues in California resulting in
<br />severe shortfalls to local general fund allocations. As a result, many public entities are being forced to
<br />5
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