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JOB GROWTH UPDATE

As we evaluate the job growth numbers for 2006, it is important to remember that due to the vagaries of economic ebbs and flows, job growth numbers are not the perfect or only measures of whether adequate progress is being made on economic, workforce and human development in the Fresno Region. However, they are the figures the RJI collaborative committed to tracking over the life of the 5-year initiative and, over time, will help determine overall effectiveness of the effort. The following tables provide an update on the job growth information from 2003 (the baseline year for the RJI) through 2006. The data source for all tables is the State of California Employment Development Department. As the above chart indicates, the number of unemployed workers in the Fresno-Madera area declined further in 2006. The average annual unemployment rate for Fresno and Madera counties was 8.0% (37,016 people) in 2006, compared to 8.8% (41,680 people) in 2005, 10.2% (48,100 people) and 11.5% (53,900 people) in 2003 (the baseline year for the RJI). While RJI targeted industries did not experience strong growth in the first half of 2006, the second half of 2006 saw gains in employment in the target clusters. Since 2003, the target clusters grew by 8.2% with a total of 1,142 jobs added. In addition, RJI targeted clusters have accounted for 53.6% of non-farm employment growth between 2005 and 2006 and 43.5% of non-farm employment growth since 2003. With the exception of Logistics and Distribution, all RJI targeted industries experienced growth during 2006. The Construction industry continues to be the fastest growing of the targeted industries. However, its growth in 2006 slowed compared to the previous two years. Durable goods manufacturing has added over 600 jobs in the last three years, which is a reversal of the decline in manufacturing jobs statewide. Tourism and information processing continue to grow at an impressive pace. Health care, while growing, is not growing at nearly the rate expected by industry leaders who developed the job growth projection for the RJI plan, yet given sufficient workforce availability, it continues to represent perhaps the region’s single-greatest job growth opportunity. Overall, 233 jobs have been lost in the logistics and distribution industry, which is surprising to industry leaders who report nothing but increases in employment in their respective facilities. More investigation into this statistic is needed. Multiplier jobs (“other industry clusters”) represent 25.3% of all job growth during the 2003-2006 period. In summary, 76% of non-farm job growth has come from industry clusters targeted by the RJI. RJI clusters have grown at an 8.5% rate since 2003, while other industry clusters have grown at a 2.4% rate.