Monday, December 01, 2008

By CHRISTINA SALERNO
csalerno@modbee.com

last updated: March 01, 2008 07:52:18 AM

Every job sector in Stanislaus County declined last month, with the ripple effects of the troubled economy touching everything from restaurants to nail salons.

Stanislaus County's unemployment rate climbed to 10.8 percent in January, an increase of nearly a percentage point from December, according to state Employment Development Department statistics released Friday. It was the first time the county has seen double-digit unemployment since 2005.

The biggest losses were in the retail trade sector, which cut 1,600 jobs in January. Eighty percent of those jobs were cut as a result of retail stores letting go of their extra holiday help, said Liz Baker, EDD labor market analyst for Stanislaus and San Joaquin counties.

That's typical for this time of year, she said, which traditionally sees a spike in the unemployment rate because of retail cutbacks, as well as a slowdown in agriculture work until the spring.

But there were some "unexpected losses" as well, she said.

For example, in January 2007, the leisure and hospitality sector grew by about 800 jobs. Last month, it was down 300 jobs.

"When you have a slowdown in the economy, people are spending less on hotels and eating less in restaurants," Baker said. Although 300 jobs isn't a "huge decline," she said, it is an indication that consumers are curtailing their spending.

Another job category that showed a surprising decline was "other services." The category includes businesses such as nail salons, dry cleaners and other personal services. It lost 100 jobs last month.

"To see those types of industries starting to have reductions is in line with the fact that the economy is slowing," Baker said.

The housing and foreclosure crisis in the valley has battered employment in the construction and financial sectors, which includes mortgage and title firms. Those sectors in Stanislaus County were down by about 1,100 jobs in January.

Manufacturing, education, health services and government also lost jobs compared with the previous month. The only sector in Stanislaus County that didn't show a decline was the information sector, which stayed flat.

Statewide rate unchanged

The last time Stanislaus County had double-digit unemployment was in February 2005. Revised data show December's jobless rate in the county at 9.9 percent.

Statewide, the unemployment rate last month was 5.9 percent, unchanged from December's revised rate. Job losses in California were widespread, with information, construction and financial services among the employment sectors seeing the most pronounced cuts.

Other counties in the Northern San Joaquin Valley and foothills saw upswings in unemployment in January. San Joaquin and Merced counties hit double-digit unemployment last month, at 10 percent and 13.3 percent, respectively.

It is the first time in nearly four years that San Joaquin County has recorded such high jobless rates, up from 9.4 percent in December and 8.6 percent in January 2007. Last month, it lost 1,600 jobs in construction.

Merced County is no stranger to double-digit unemployment rates -- it recorded a jobless rate of 11.9 percent in December and 11.7 percent in January 2007.

Calaveras, Mariposa and Tuolumne counties recorded unemployment rates between 8 percent and 9 percent. The foothill region saw a jump in unemployment rates from the previous year and month.

Bee staff writer Christina Salerno can be reached at csalerno@modbee.com or 238-4574.

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