Bay Area job market soars in February ahead of coronavirus-spawned layoffs

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The job market in the Bay Area powered to robust gains during February, an upbeat report that arrives just ahead of what’s expected to be a string of grim setbacks and brutal employment losses for the region’s economy unleashed by the coronavirus pandemic.

Bay Area employers added 8,000 jobs in February, gains that were led by Santa Clara County and San Francisco-San Mateo, but the timing of when state officials conducted their research doesn’t reflect job losses that are already known to have begun due to the coronavirus outbreak.

In February, Santa Clara County gained 4,000 jobs, the San Francisco-San Mateo region added 3,200, while the East Bay gained 200, the state Employment Development Department reported Friday. The gains extended to all seven metro areas in the region. Santa Cruz County added 1,000 jobs while Monterey County gained 500. All the numbers were adjusted for seasonal fluctuations.

California added 29,000 non-farm payroll jobs during February, while the statewide unemployment rate remained at an all-time record low of 3.9 percent, the EDD reported.

Still, that record-setting performance for California seems certain to change, if Gov. Gavin Newsom is correct with his estimate that state agencies have received roughly 1 million applications for unemployment benefits over a roughly two-week period starting around March 13.

In February, California had 759,000 unemployed residents that were part of a total labor force of 19.5 million in the state. That means the number of unemployed residents might currently be in the range of 1.8 million people.

If the number of unemployed residents was to reach the 1.8 million range, and the labor force remained at the same level of 19.5 million, that would point to a jobless rate of 9 percent, which would be on the cusp of the double-digit unemployment levels that are often associated with a severe economic downturn — or worse.

The prospect of job cuts in the Bay Area and nearby regions has already emerged, according to a state agency’s labor report this week.

Hotels, spas, stores, and restaurants, including some in getaway destinations for California, are among the employers that revealed plans for job cuts totaling in the thousands for the Bay Area and nearby regions amid the coronavirus pandemic.

Rosewood CordeValle of San Martin, Carmel Valley Ranch of Carmel, and Ventana Big Sur were some of the high-profile names that issued warnings they were planning layoffs, the latest grim reminder of the economic devastation spawned by the coronavirus.

In addition, Las Alcobas Resort & Spa of St. Helena, Blackhawk Grille of Danville, European Wax Center in Castro Valley and Fairfield, Sport Clips Haircuts of Vacaville, Inflight Catering of Brisbane, Mylan Pharmaceuticals of San Carlos, Boosted Boards of Mountain View, Z Gallerie in Berkeley, Smothers & White auto dealership in Santa Rosa, and a hotel and some restaurants in San Francisco were planning layoffs.

In most instances, these businesses were planning temporary closures or layoffs, typically citing the coronavirus pandemic.

“Recent events surrounding the coronavirus pandemic are having a significant impact on the California hospitality industry, including the Rosewood CordeValle hotel,” Luca Rutigliano, managing director of Rosewood CordeValle wrote in a March 17 letter to the state EDD.

 

 

Source: https://www.mercurynews.com/2020/03/27/bay-area-job-market-soars-february-coronavirus-layoff-tech-hotel-retail-restaurant-economy/