Economic News - May 2021May 28 2021
Covid-19 Economic Impact on Solano Economy
In April, the monthly unemployment rate in Solano County continued its incremental decline dropping from from 7.8 to 7.6 percent, significantly lower than its highest rate of 14.9 percent a year ago this month. While the unemployment rate dipped, as in most recent months, this is not a story of recovery. Civilian employment actually declined by 2,300 jobs, while the labor force dropped by a greater number, 2,700. Labor force numbers continue to show significant variability as household decisions are being made to seek, or not seek employment. Note: “civilian employment” represents Solano residents working both in and outside of Solano County.
While the civilian jobs number was less than impressive in April, non-farm jobs located within the County showed improvement with a growth of 500 jobs during he month. As shown in the orange bar, greatest increases occurred in Government with an increase of 500 jobs, Leisure & Hospitality with an addition of 400 jobs (driven by returning business in restaurants, bars and hotels), and Professional & Business Services and Construction each netting an additional 200 jobs. Historically one of the more stable sectors, Education & Health Services saw a significant decline in jobs of 900; a majority of those jobs in Health Care & Social Assistance.
The chart below reflects the increase in non-farm jobs from the beginning of the economic impact of the pandemic to the most recent data reported for April 2021. The trend is relatively clear, and reflective of the pandemic itself; gradual improvement from the trough of April 2020, then the winter “surge” of infections causing a secondary partial “closure” of many business activities, followed by a gradual improvement of conditions.
The lowering of Covid-19 safety regulations to the “Orange Tier” likely within the coming days, and elimination of the tiering system all together on June 15th, will likely be reflected in greater job numbers. Hiring is occurring now in preparation for those events. The degree to which we see monthly improvements will, in part, be connected to the degree of success in continuing to reduce infection and hospital numbers in Solano, which has lagged behind the Bay Area and State as a whole.
The Solano EDC is a private non-profit organization created to improve the economic health of Solano County. Solano Economic Resource Center (SERC) is a division of the EDC and provides economic research and marketing services for organizational partners, investors, and local jurisdictions in Solano and beyond. For inquiries please contact Robert Burris at email@example.com .