Before coronavirus, Fresno and Valley were at near record employment, EDD data shows
The state of California released unemployment numbers on Friday that illustrated a strong economy in Fresno and the central San Joaquin Valley — just before the coronavirus pandemic hit the country.
More than 38,000 people were unemployed in Fresno County in February, when the unemployment rate was 8.5%, according to the report from the Economic Development Department.
The number rose slightly from January’s report, but was down from the same time last year when the rate was 8.9%. It was the lowest February rate on record since 1990, according to Steven Gutierrez, an analyst with EDD.
Other parts of the Valley saw improvements or, like Merced County (10.4%), saw no change in unemployment.
About 10,000 more people were employed in Fresno County in February than a year earlier, according to EDD. Merced County had 500 fewer jobs that were likely seasonal.
Seasonal trends tend to see the unemployment rate rise this time of year as seasonal jobs jobs go away and agriculture slows down, Gutierrez said.
EDD’s monthly reports are a look in the previous month so the report does not reflect coronavirus’ punch to the economy, which hit this month.
“Realistically, we’re probably not going to see the effects until we report the April numbers, which will be in May,” Gutierrez said.
The pandemic reached California and many businesses across the state began to lay off tens of thousands of employees and close their doors in an attempt to slow coronavirus transmission among crowds.
Almost 187,000 Californians filed initial claims for unemployment insurance last week, according to the U.S. Department of Labor. That’s more than triple from the prior week.
The city of Fresno on March 18 asked all nonessential businesses to close so people could stay home, and on Thursday extended the order through April 12.
Gov. Gavin Newsom issued a similar order on March 19.
A Sacramento Bee analysis of a recent Economic Policy Institute study indicates the five-county region of Fresno, Kings, Madera, Merced and Tulare counties could see job losses in the private-sector climb to more than 55,000. That’s a rate of 11% to 12% of employment based on pre-coronavirus levels in 2019.
The leisure/hospitality sector of bars, nightclubs, restaurants and the like has largely been limited to offering take-out service only during the pandemic. Hotels, motels and tourism-related jobs account for about 61,000 workers. About 71,000 employees work in retail stores in the region.
Together, the two sectors represent about 28% of employees in Fresno, Kings, Madera, Merced and Tulare counties.
Gutierrez said the EDD doesn’t yet have a hold on just how many people are newly unemployed due to the pandemic.
“At this point in time we just don’t know what it’s going to be,” he said. “We’re at a big unknown.”
This story was originally published March 27, 2020 at 2:20 PM.
