Unemployment

Seasonal Jobs Increase Unemployment Rate in the North

Why is it important?

The unemployment rate measures the percent of the labor force out of work and actively seeking employment. This rate rises during recessions and falls during expansions. Because some turnover is normal – people leave jobs to move or change occupations – rates rarely fall below 2 or 3 percent. When rates reach these low levels, employers have difficulty filling positions and raise wages. When rates rise above 6 percent, the economy is performing below its potential. Economies with many seasonal jobs have high annual unemployment even if levels are low during peak months. In such areas, creating more year-round jobs can reduce annual unemployment rates.

How are we doing?

With the recession in 2001, unemployment rates climbed throughout the Sierra Nevada, which follows the pattern seen in California. Although historical unemployment rates in the Sierra Nevada consistently exceeded California’s, today they match or are lower in three of four regions. Only in the North does unemployment exceed the state rate. The gap increased after the Sierra Pacific Industries sawmill closed in Loyalton. In North Central, the economy is so strong that unemployment rates average 2 points lower than California’s.

Unlike what was found in the Sierra Business Council’s previous two Wealth Indices, seasonal unemployment is now a significant factor only in the North. This suggests that South Central and East have succeeded in creating more year-round jobs.

Download data and charts for 2003 (Monthly)
Download data and charts 1990-2003