The Bay Area is showing more clear signs of economic recovery.

The Bay Area is showing more clear signs of economic recovery.

The Sacramento Region posted 1.5 percent job growth in July 2005, with a year-over-year increase of 13,100 Nonfarm jobs. Job growth in the Region has generally remained close to, but slightly below, the statewide and national averages over the past few months.

The state has shown a relatively flat job growth trend over the past year—despite some notable peaks in November 2004 and January 2005, it has seen approximately 1.6 percent job growth, on average. Between July 2004 and 2005, the state gained 212,000 jobs, reflecting a 1.5 percent employment growth rate. California’s posted a similar year-over-year employment growth rate in July 2005 as the same month of the previous year.

The job growth trend at the national level has also been fairly flat over the past year, with average growth also around 1.6 percent. With a 1.6 percent employment growth rate in July 2005, the nation gained over 2.1 million jobs in the past year.

Employment declines in the Bay Area have clearly bottomed out and the economy has presented an important rebound over the past few months. The Bay Area has seen continuous positive year-over-year employment growth rates since the beginning of 2005, reaching a high of 0.9 percent in July 2005 (an increase of 24,800 jobs). This is the highest level of job growth that the Bay Area has posted in a number of years. The pattern of increasing job growth further demonstrates the recovery occurring in the Bay Area’s overall economy.


Nonfarm Employment Growth Rate Comparison
Sacramento Region, Bay Area, California, and U.S.



Sacramento Regional Research Institute, August 2005
Data Source: Employment Development Department
Notes: Sacramento Region includes the Sacramento-Arden-Arcade-Roseville and Yuba City MSAs.
Bay Area includes the Oakland-Fremont-Hayward MD, San Francisco-San Mateo-Redwood City MD, and San Jose-Sunnyvale-Santa Clara MSA.
Growth reflects 12 months ending July 2005.




Employment Gains and Losses
Major Sectors


Sacramento Regional Research Institute, August 2005
Data Source: Employment Development Department



The Sacramento Region’s Government sector gained the second-largest amount of jobs among its major sectors between July 2004 and 2005.

The public sector accounted for close to one-quarter of the 13,100 Nonfarm jobs that the Sacramento Region gained in the past year. Government posted the second-highest job gains between July 2004 and 2005, following Trade, Transportation, & Utilities and ahead of Professional & Business Services. The Government sector has not ranked this high among the Region’s major sectors since the summer of 2003 when it absorbed private sector losses. Similar to the past few months, the Region posted year-over-year employment losses in only two sectors—Leisure & Hospitality and Information.

Unlike the Sacramento Region, the Bay Area lost jobs over the past year in its Government sector and gained Leisure & Hospitality jobs. Educational & Health Services; Financial Activities; and Construction posted the largest job gains in the Bay Area, while, in addition to the Government sector, Information and Other Services saw employment declines.

The state gained jobs in both of the Sacramento Region’s loss sectors (Leisure & Hospitality and Information), but lost jobs in Manufacturing where the Region experienced positive employment growth. In addition to Leisure & Hospitality, California saw the largest employment gains between July 2004 and 2005 in the Construction and Professional & Business Services sectors. Similar to Sacramento, the state also saw an overall increase in the public sector.


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